Unregistered Firm Can Sue To Enforce Statutory Or Common Law Rights
The Delhi High Court has ruled that an unregistered firm can sue to enforce statutory or common law rights, and that Section 69(2) of the Partnership Act is no bar.
Section 69 of the Indian Partnership Act, 1932 has an embargo on an un-registered firm from filing a suit or any...
In the case at hand, an unregistered partnership firm had challenged a tax demand of over ₹50 lakh raised against it through its partner. The Department objected to the maintainability of the petition, stating that the firm is unregistered.
Rejecting the Department's claim, the High Court observed that since the partner has also been impleaded, it cannot be held that the writ petition is not maintainable.
- Case title: Amit Kumar Basau & Anr. vs. Sales Tax Officer Class II Avato Ward 13 (Special Zone) Zone 12 Delhi & Ors.
- Counsel: Naman Mehta, Advs for Petitioners; Mr. Anoushka Bhalla, Adv for Respondents
Author's summary: Delhi High Court rules in favor of unregistered firms.
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