Under the Indian Partnership Act, 1932, Saheli Garment Exporter Firm, an unregistered firm having its…

Since 31 October 2019 the Indian Partnership Act, 1932 extends to the Union territory of Jammu and Kashmir under the Jammu and Kashmir Reorganisation Act, 2019. Section 69(2) therefore bars a suit by an unregistered firm against a third party to enforce a right arising from a contract, such as a claim for the unpaid price, so the suit is "not maintainable". The exception in section 69(4)(a) for firms having no place of business in the territories to which the Act extends does not help a firm with its office at Srinagar. Non-registration under section 69 is not cured by staying the suit or returning the plaint.

Formerly, when the Act did not extend to the State of Jammu and Kashmir, such a firm fell within section 69(4)(a) and its suit was maintainable.