NOTES


CA-Foundation > Business Laws > The Indian Partnership Act, 1932 - Formation and Registration of Partnership Firm (Old & New)

What are the effects non-registration of a partnership firm?



Ans.

EFFECTS OF NON-REGISTRATION PARTNERSHIP FIRM (SEC. 69)

An unregistered firm and the partners thereof suffer from certain disabilities.

Suit between partners and firm [sec. 69(1)]

A partner of an unregistered firm cannot file a suit (against the firm or any partner thereof) for the purpose of enforcing a right arising from contract or a right conferred by the Partnership Act.

Suits between firm & third parties [sec. 69(2)]

No suit can be filed by or on behalf of an unregistered firm against any third party for the purpose of enforcing a right arising from a contract, unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the Firm.

Claims of set-off [sec. 69(3)]

An unregistered firm cannot claim a set-off in a suit, ('set-off’ means a claim by the defendant which would reduce the amount of money payable by him to the plaintiff).


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Notes of The Indian Partnership Act, 1932 - Formation and Registration of Partnership Firm (Old & New)



  1. What are the effects non-registration of a partnership firm?
    see in detail

  2. "Registration of partnership firm is not compulsory, yet it is desirable", comment.
    see in detail

  3. Amit & Bhushan purchased a taxi to ply in partnership. They plied the taxi for a year when Amit without the consent of Bhushan, disposed of the taxi which brought the partnership to an end. Bhushan brought an action to recover his share on the sale proceeds. Amit resisted Bhushan's claim on the ground that the firm was not registered. Will he succeed in his claim?
    see in detail

  4. Aadu & Co. is registered as a partnership firm in 1990 with Mahesh, Suresh and Ramesh partners. In 2006, Mahesh dies. In 2007, Suresh and Ramesh sue Kapil in the name and behalf of Aadu & Co., without fresh registration. Whether the suit is maintainable?
    see in detail

  5. An unregistered firm and the partners thereof suffer from certain disabilities. State the exceptions to such disability.
    see in detail


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