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?
A suit against a buyer to recover the price of goods sold
A suit to realise the property of the firm after dissolution
A suit against a neighbour for a tort to its premises
A defence to a suit filed against it by a supplier
Answer and explanation
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.
Practice for these exams
-
UGC NET Law
Subject revision
See pack details on LawMint.net -
CUET PG Law (LL.M.)
Subject revision
-
Uttarakhand Judicial Services
Subject revision
Related exam syllabi
More solved explanations in Registration of firms & effect of non-registration
- A suit of a partnership firm to enforce any type of rights of the partnership firm is not maintainable unless the partnership firm is registered under Section 69…
- As of 7 November 2026, which section of the Indian Partnership Act, 1932 deals with the effect of non-registration?
- Under the Indian Partnership Act, 1932, the registration statement must contain:
- Under the Indian Partnership Act, 1932, the State Government may define the areas within which the Registrar shall:
- When the Registrar is satisfied that the requirements of Section 58 of the Indian Partnership Act, 1932 are complied with, he shall: