Jake (Student) 31 March 2014

Subsequent registration of firm and suing rights

Assume the following scenario: On 1 April, an unregistered firm enters into a contract with a third party. On 10 April, the afore mentioned firm registers itself with the Registrar. On 15 April, there is a breach of contract in the third party's refusal to pay the contracted amount. Can the now registered firm sue the third party? Will Section 69 (2) of the Indian Partnership Act, 1932 be a hindrance?

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3 Replies

Rahul J. Gada (Advocate) 31 March 2014

Yes, if u would file a suit in the name of the firm then it would b barred by S.69(2) of the act.

Advocate Bhartesh goyal (advocate) 01 April 2014

Since the firm has been registered in registrar of firms before filing suit against third party so No bar/restrictions to file suit and sec 69[2] of Partnership act will not apply.

Jake (Student) 02 April 2014

Originally posted by : Advocate Bhartesh goyal
	Since the firm has been registered in registrar of firms before filing suit against third party so No bar/restrictions to file suit and sec 69[2] of Partnership act will not apply.

Even though the contract was signed before the registration of the firm, but breached after registration, third-party sued after registration?