Praveen Kumar

Praveen Kumar

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Praveen Kumar
Praveen Kumar
January 27, 2025 at 07:55 AM
*Sunkari Tirumala Rao V. Penki Aruna Kumari (2025 SC)* 1. Registration of a Partnership firm is not mandatory. 2. ⁠However, S.69 of the Partnership Act, 1932 bars the institution of any suit by an unregistered firm or its partners. 3. ⁠S. 69 is mandatory. S.69(1) prohibits a suit amongst the partners of an unregistered partnership firm, for the enforcement of a right either arising from a contract or conferred by the Act, unless the suit amongst the partners is in the nature of dissolution of the partnership firm and/or rendition of accounts. 4. ⁠A suit by one partner against another partner for (i) declaration that an unregistered firm exists, and (ii) dissolution of such firm- is maintainable. 5. ⁠A suit for recovery of money on the basis of partnership deed by one partner of unregistered firm against another is not maintainable. Such a suit is based for enforcement of a right arising out of the agreement and hence is not maintainable. It doesn’t matter whether the partnership business has yet not commenced.
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