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Anil Kr Garg (Business)     18 March 2017

Suit for specific performance by an unregistered firm

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?


 5 Replies

Asgher Mahdi (Advocate & Legal Advisor)     18 March 2017

Unless the entire contents of your alleged facts is not kown, the same cannot be answered. In fact, Oral transfer is void and such suit is not maintainable and court may dismiss it. One thing should be bear in mind that the ruling of any type may not over rule the basic set up of laws.

Suri.Sravan Kumar (senior)     19 March 2017

Date of registration will not have restropective effect. The firm cannot take any advantage of its registration certificate by producing now.

Anil Kr Garg (Business)     20 March 2017

Thank you very much

Asgher Mahdi (Advocate & Legal Advisor)     20 March 2017

Unregistered firm document may not rely as evidence before the court as documentary evidence but may look for any secondary evidence to consider the issue.

Advocate/CS Sanjeev Kataria ( Advocate)     09 April 2017

the unregistered firm can not file a suit against third person, pls see relevant section of indina partnership act

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