According to Section 69(2) of the Indian Partnership Act, 1932, an unregistered firm cannot sue any third party for enforcement of a right arising from the contract. Explain the scope of limitation on the litigation by the partners against a third party with the help of decided cases.
⭐ QUESTION 4(a) According to Section 69(2) of the Indian Partnership Act, 1932, an unregistered firm cannot sue any third party for enforcement of a right arising from the contract. Explain the scope of limitation on the litigation by the partners against a third party with the help of decided cases. 1. INTRODUCTION Registration of a partnership firm in India is not compulsory . However, the law penalizes unregistered firms by putting severe restrictions on their right to file suits. The most important provision is Section 69 , which imposes disabilities on unregistered firms . ⭐ 2. WHAT IS SECTION 69(2)? (CORE PROVISION) Section 69(2), Partnership Act, 1932 An unregistered firm or any partner of such firm cannot file a suit in any court against a third party to enforce a right arising from a contract . This means: ๐ If a firm is not registered, ๐ It cannot sue outsiders for breach of contract, recovery of money, damages, etc. ⭐ 3. ESSENTIAL ELEMENTS OF SECTION 6...