69.
Effect of non-registration.- (1) No
suit to enforce a right arising from a contract
or conferred by this Act shall be instituted
in any Court by or on a behalf of any persons
suing as a partner in a firm against the firm
or any person alleged to be or to have been
a partner in the firm unless the firm is registered
and the person suing is or has been shown in
the Register of Firms as a partner in the firm;
Provided that the requirement of registration
of firm under this sub-section shall not apply
to the suits or proceedings instituted by the
heirs or legal representatives of the deceased
partner of a firm for accounts of the firm or
to realise the property of the firm.
(2) No suit to enforce a right arising from
a contract shall be instituted in any court
by or on behalf of a firm against any third
party unless the firm is registered and the
persons suing are or have been shown in the
Register of Firms as partners in the firm.
(2A) No suit to enforce any right for the dissolution
of a firm or for accounts of a dissolved firm
or any right or power to realise the property
of a dissolved firm shall be instituted in any
Court by or on behalf of any person suing as
a partner in a firm against the firm or any
person alleged to be or have been a partner
in the firm, unless the firm is registered and
the person suing is or has been shown in the
Register of Firms as a partner in the firm;
Provided that the requirement of registration
of firm under this sub-section shall not apply
to the suits or proceedings instituted by the
heirs or legal representatives of the deceased
partner of a firm for accounts of a dissolved
firm or to realise the property of a dissolved
firm.
(3) The provisions of sub-sections (1), (2)
and (2A) shall apply also to a claim of set-off
or other proceedings to enforce a right arising
from a contract but shall not affect
(a) the firms constituted for a duration upto
six months or with a capital upto two thousand
rupees; or;
(b) the powers of an official assigned, receiver
or Court under the Presidency Towns Insolvency
Act, 1909, or the Provincial Insolvency Act,
1920, to realise the property of an insolvent
partner.
(4) This section shall not apply:
(a) to firms or partners in firm which have
no place of business in the territories to which
this Act extends, or whose places of business
in the said territories are situated in areas
to which, by notification under section 56 this
Chapter does not apply, or
(b) to any suit or claim of set-off not exceeding
one hundred rupees in value which, in the presidency
towns, is not of a kind specified in section
19 of the Presidency Small Cause Courts Act,
1882, or outside the Presidency towns, is not
of a kind specified in the Second Schedule to
the Provincial Small Cause Courts Act, 1887,
or to any proceeding in execution or other proceeding
incidental to or arising from any such suit
or claim. |
