A and B, two members of a three-member partnership firm, bring a suit for recovery of the debt due from…

Section 69(2) of the Indian Partnership Act, 1932 bars a suit to enforce a right arising from a contract by or on behalf of a firm against a third party unless the firm is registered and the persons suing are shown in the register of firms as partners. The suit by A and B for the firm's debt "Is liable to be rejected"; the bar cannot be waived by leave of the court or by the debtor's consent, and registration after the suit is filed does not cure the defect.