Partnership Act, 1932 – Bar of Section 69(2) – Suit, filed by an unregistered partnership firm – To attract the bar the contract in question must be the one entered into by firm with the third-party defendant and must also be the one entered into by the plaintiff firm in the course of its business dealings

2022 SCeJ 1397

Partnership Act, 1932 – Bar of Section 69(2) – Suit, filed by an unregistered partnership firm – To attract the bar the contract in question must be the one entered into by firm with the third-party defendant and must also be the one entered into by the plaintiff firm in the course of its business dealings- Section 69(2) is not a bar to a suit filed by an unregistered firm, if the same is for enforcement of a statutory right or a common law right – Transaction in question was not the one entered into by the plaintiff firm during the course of its business ; and it had been an independent transaction of sale, of the firm's share in the suit property – The bar of Section 69(2) is not attracted in relation to the said sale transaction – Moreover, the subject suit cannot be said to be the one for enforcement of right arising from a contract; rather the subject suit is clearly the one where the plaintiff seeks common law remedies with the allegations of fraud and misrepresentation as also of the statutory rights of injunction and declaration in terms of the provisions of the Specific Relief Act, 1963 as also the Transfer of Property Act, 1882 (while alleging want of the sale consideration) – Therefore, the bar of Section 69(2) of the Act of 1932 does not apply to the present case.

Tags: Contract, def, FIR, Fraud, Injunction, Partnership, Partnership Act S. 69(2), Representation, unregistered partnership

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