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ashok kumar (Social Worker)     12 March 2014

Section 69 of partnership act bar in nia cases

Section 69 of Partnership Act Bar in NIA Cases

Does Section 69 0f Partnership Act operate as a bar for filing Criminal Cases, particularly Section 138 of NIA?

Pl give some case laws in support of your opinion.

ashokkumar@calibreplacements.com



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 2 Replies

T. Kalaiselvan, Advocate (Advocate)     13 March 2014

Section 69 of Partnership act is mandatory in character and its effect is to render a suit by plaintiff in respect of a right vested in him or acquired under a contract which he entered into as a partner or a firm, whether existing or dissolved or void.  In other words a partner of an erst while unregistered partnership firm cannot bring a suit to enforce a right arising out of a contract fallingwithin the ambit of the main part of  S. 69 (3) of th act.   The words 'to sue' cannot be construed narrowly to refer only to suits for dissolution of partnership and accounts, but also to which it deals with proceedings other than suits.  therefore it appliesto all provisions within the meaning 'to sue'

R Trivedi (advocate.dma@gmail.com)     14 March 2014

A partnership firm need not be registered for initiating the process under S.138, which is criminal in nature. Yes, due and valid authorization must be on record on behalf of firm.


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