Section 69 of IPA : Section 69: Effect Of Non-Registration
IPA
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Explanation using Example
Imagine a scenario where 'QuickTech Solutions' is a partnership firm that designs software. The firm is not registered under the Indian Partnership Act, 1932. One of the partners, Raj, wants to sue another partner, Amit, for not sharing the profits as per the agreement they had when they formed the partnership.
Raj approaches a lawyer to file a suit against Amit in court. However, the lawyer informs Raj that according to Section 69(1) of the Indian Partnership Act, 1932, he cannot sue Amit in court on behalf of 'QuickTech Solutions' unless the firm is registered and Raj is shown as a partner in the firm's registration records.
The lawyer advises Raj to first ensure the firm is registered and his name is listed as a partner in the Register of Firms. Only then can he legally enforce his rights under the contract against Amit in court.
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