namangandhi 13 February 2016

Suit against an unregistered partnership firm

Hi Friends,

I have a small query, Section 69 of partnership Act 1932, bars the partner of an unregisterd firm or the unregistered firm from filling suit, whether it also bars any third party who contracts with the unregisterd firm, from filling suit against the unregistered firm?

Please support your answer with the judgement.

Regards

Naman

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3 Replies

G.L.N. Prasad (Retired employee.) 13 February 2016

Any third party can file suit against unregistered firm or partners. This is the advantage of registaration, and this measure was incorporated in the Act to encourage registaration and gives advantage to third parties.

When the Act stipulates, there is no need for filing any citations at this stage, and your advocate takes care of the rest.

Dr J C Vashista (Advocate) 14 February 2016

I disagree.

Unregistered firm can not be sued, rather the partners of the firm are individually liable for legal action.

Consult and engage a local lawyer.

G.L.N. Prasad (Retired employee.) 14 February 2016

The ultimate purpose is suing, when the liability is joint and several when all the partners are made as parties, it is suit against the firm though not technically.