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An unregistered firm wishes to go to court. Which of the following is barred by section 69(2) of the Indian Partnership Act, 1932?

Question and options

An unregistered firm wishes to go to court. Which of the following is barred by section 69(2) of the Indian Partnership Act, 1932?

  1. A suit against a buyer to recover the price of goods sold

  2. A suit to realise the property of the firm after dissolution

  3. A suit against a neighbour for a tort to its premises

  4. A defence to a suit filed against it by a supplier

Answer and explanation

Correct answer: A - A suit against a buyer to recover the price of goods sold

Section 69(2) of the Indian Partnership Act, 1932 bars a suit by or on behalf of an unregistered firm against a third party to enforce a right arising from a contract, so a suit for the price of goods sold cannot be filed. The bar does not stop the firm from defending a suit brought against it, and it does not reach rights that do not arise from contract, such as a claim in tort. Section 69(3)(a) expressly saves the right to realise the property of a dissolved firm.

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