question_answer

A, B and C are three partners. They started with a business of transportation. They had good understanding so they had an oral partnership deed. They did not bother to register their firm as well. They had to collect a payment of Rs. 4,00,000 from a client who was not doing it.

(a) Can they file a suit against him? Why or why not?

(b) Explain the impact of non registration of a partnership firm

Answer:

Ans.     (a) No, they cannot file a suit against him because the firm is unregistered.

(b) Registration is not compulsory, it is optional. But it is always beneficial to get the firm registered. The consequences of non-registration of a firm are as follows:-

(i) A partner of an unregistered firm cannot file suit against the firm or other partner.

(ii) The firm cannot file a suit against third party.

(iii) The firm cannot file a case against its partner.