Effect of Non-Registration of the Firm

Effect of Non-Registration of the Firm

1. Under section 69 of the Partnership Act 1932 no suit to enforce a right arising from a contract or conferred by this law shall be instituted in any court by or on behalf of any person suing as a partner in a firm against the firm or nay person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Registrar of Firms as a partner in the firm.

2. No suit to enforce a right arising from a contract shall be instituted in any court by or on behalf of a firm against any third party unless the firm is registered and the person suing are or have been shown in the registrar of firm as partner in the firm.

3. That the above shall apply also to a claim of set-off or other proceeding to enforce a right arising from a contract but shall not effect.
(a) The enforcement of nay right to sue for the dissolution of firm or for accounts of a dissolved firm or any right or power to realize the property of a dissolved firm
(b) The powers of any official assignee receiver or court under the law or the provisional insolvency at 1920 to realize the property of an insolvent partner.

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