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SC upheld the jurisdictional bar under Section 69(1) of the ...


Partners of Unregistered Firm Blocked from Monetary Recovery Suit Under Section 69(1) of Partnership Act

April 26, 2025

Case Laws     Indian Laws     SC

SC upheld the jurisdictional bar under Section 69(1) of the Indian Partnership Act, 1932, rendering the suit by partners of an unregistered partnership firm for money recovery non-maintainable. The Court conclusively determined that since the partnership firm was unregistered, the plaintiffs were legally precluded from filing a suit against another partner for monetary recovery. The High Court's order was affirmed, and the Special Leave Petition was dismissed, establishing that an unregistered partnership firm cannot pursue such legal proceedings without first registering the partnership.

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