Partnership deed made in 1992 on rs100 stamp paper

Querist : Anonymous (Querist) 29 June 2021 This query is : Resolved
A Partnership Deed was made in 1992 on Rs100 stamp paper where it is said that a building owned by one of the partner should be transferred in the name of both partners. Only 2 partners in the firm.

No cash capital is contributed by either of the partner in the partnership firm. It is not registered with Registrar of Firms.

My question is only about validity of the Partnership Deed since it is executed on Rs.100 stamp paper?

I am not seeking advice about the transfer part of the building.

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SHIRISH PAWAR, 7738990900 (Expert) 29 June 2021
Hello,

The partnership has to be registered. An unregistered partnership agreement is not enforceable in a court of law. If any of the partners is denying his part under agreement then it is difficult to get relief from the court.

kavksatyanarayana (Expert) 29 June 2021
Partnership Deed registration is not compulsory. But it shall be executed by all the partners on Stamp Worth Rs.500/-. Hence your partnership deed is not valid. But if it is produced before the court, the court will impound it and send it to the Collector under IS Act (the District Registrar) for validation. After validation, it will be used for evidence only.

T. Kalaiselvan, Advocate (Expert) 01 July 2021
Registration of a partnership firm is not mandatory under law. The Partnership Act,1932 provides that if the partners so desire may register the firm with the Registrar of Firms of the state in which the firm’s main office is situated. A partnership firm may be registered at the time of formation or at any time thereafter.

The consequences of a partnership firm which is not registered are as follows:

1. It cannot enforce its claims against the third party in a court of law.

2. It cannot file a legal suit against any of its partners

3. Partners of an unregistered firm cannot file any suit to enforce a right against the firm.

4. A partner of an unregistered firm cannot file suit against other partners.

5. It cannot claim adjustment for any sum exceeding Rs. 100. Suppose an unregistered firm owes Rs. 1200 to X and X owes Rs.1000 to the firm. The firm cannot enforce an adjustment of Rs.1000 in a court of law.

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