Partnership Act, 1932 – Section 69 – Suit for recovery of money filed by petitioners/plaintiffs, partners of an unregistered partnership firm, against respondent/defendant, a partner of the same firm – Trial Court found the suit to be maintainable as partnership business had not commenced – High Court found suit not maintainable as per Section 69(1) – SLP against High Court order dismissed – Partnership firm being unregistered would prevent the petitioners from filing a bare suit for recovery of money from the respondent: Held: Petitioners/plaintiffs filed a suit for recovery of money in their capacity as partners of an unregistered partnership firm, against respondent/ defendant – Maintainability of suit challenged on grounds of Partnership Act, Section 69 – Trial Court found the suit to be maintainable as partnership business had not commenced – In Civil Revision Application, High Court found the suit not to be maintainable under Section 69(1) as agreement of partnership was unregistered – SLP against High Court order dismissed – Mandatory character of Section 69(1) and (2) discussed – Seth Loonkaran Sethiya and Others v. Mr. Ivan E. John and Others relied on – Rigours of Section 69(1) would apply and the partnership firm being unregistered would prevent the petitioners from filing a bare suit for recovery of money from the respondent – Would have been more appropriate had the petitioners/plaintiffs filed a suit of dissolution instead, in light of the exception under Section 69(3) – Mukund Balkrishna Kulkarni v. Kulkarni Powder Metallurgical Industries and Another relied on. [Paras 15-17]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Aishani Narain, Hony. Associate Editor (Verified by: Shibani Ghosh, Adv.). Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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