Un registered firm cannot sue but if it is registered before filing of suit it can take legal proceedings against other company
Unregistered partnership firm
If both partnership firm are unregistered firm and seperat with each other with some dispute 2012. and one of unregistered firm make registered firm before filing a suit to same company, both were partner in the same company, at the time of disput both firm were unregisterd. what is true? which time of dispute will considered ?
Asked 2 years ago in Civil Law
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6 Answers
An unregistered firm cannot sue any third party for the enforcement of any right arising from contract. There are two requirements of the right to sue namely, the firm should be a registered one and the person suing should appear as a partner in the registration.
An unregistered firm's dissatisfied partners are unable to take legal action against one another because they lack the legal capacity to file a lawsuit or the authority to enforce any rights.
Any two or more persons claiming or being liable as partners and carrying on business in India may sue or be sued with the name of the firm (if any) of which such persons were partners at the time of accruing of the cause of action
No case made out
Dear client,
In general, the legal status of a partnership firm in India, whether registered or unregistered, can have implications on the resolution of disputes. Unregistered partnership firms may face limitations in enforcing their rights and claiming reliefs in court. In many cases, registered firms enjoy certain benefits and have a better legal standing. If one of the unregistered firms has subsequently registered itself before filing a suit, this registration might influence the legal proceedings. Registration may confer certain rights and benefits that unregistered firms may not have. The time of the dispute may be relevant in determining which laws and regulations apply. Changes in the legal status of the firms over time, such as registration, can impact the legal framework under which the dispute is resolved. The Partnership Act, 1932, governs the operation of partnership firms in India. However, the legal landscape may have evolved, and court decisions may influence the interpretation of the law. You can reach out to us for further assistance
Both dispute will be considered but legally when firm is unregistered it can’t file any suit against others only it can contest any suit filed against it
- As per section 69(2) of the Partnership Act, an unregistered partnership firm cannot file a suit against a third party for enforcing its rights arising from a contract or other legal rights
- Since, the said firm filed suit when it was unregistered , then the suit will not maintainable .
