EFFECTS OF NON-REGISTRATION (SEC. 69)
- Suits between partners and firm: A person suiting as a partner of an unregistered firm cannot sue the firm or any partners of the firm to enforce a right from a contract or conferred by the Partnership Act.
- Suits between firm and third parties: An unregistered firm cannot sue a third party to enforce a right arising from a contract until –
- the firm is registered, and
- the names of the persons suing appear as partners in the Register of Firms [Sec. 69(2)]
- Claim of set-off: An unregistered firm or any partner thereof cannot claim a set-off in a proceeding instituted against the firm by a third party to enforce a right arising from a contract, until the registration of the firm is effected [Sec. 69(3)]