I am defending a suit for specific performance of an ORAL CONTRACT by an unregisered firm, for sale/purchase of property. Our objection u/s 7-11 due to bar on suit by unregistered firm, has been rejected by trial court, which wants to look into this matter at the time of EVIDENCE holding that whether a firm is registered or not, will be known only at the time of EVIDENCE.
Now, evidence stage is in progress. Plaintiff in his affidavit, has not mentioned anything about registration of firm, nor they are exhibiting any document to this effect. It seems firm is definitely unregistered.
Suit was filed in 2011 for an alleged oral contract in 2011 itself. If firm gets registered now to cure the defect, it has to withdraw the suit and file afresh, which will be time barred.
Hence, I think trial court should dismiss the suit IMMEDIATELY on completion of EVIDENCE once no evidence in support of firm registration is available.
My lawyer says there are some rulings permitting curing of this defect even in appeals, and hence, this remedy is not effective, even outside limitation. I am not convinced.
Kindly advise whether defect of registration can be cured without bothering about limitation, being 3 yrs from arising of cause of action, that was in 2011?
