'A' and 'B', two members of a three member partnership firm, bring a suit for recovery of the debt due from 'X' to the firm, but their firm is not registered on the date of the institution of the suit. The suit
Verified Answer
A. is maintainable with leave of the court
B. is maintainable with the concurrence of X
C. is liable to be rejected in view of section 69, Partnership Act
D. will become maintainable after the original defect is cured by subsequent registration
Explanation:
Section 69(2) of the Indian Partnership Act, 1932, bars a suit to enforce a right arising from a contract by or on behalf of an unregistered firm against any third party. Therefore, the suit brought by 'A' and 'B' on behalf of an unregistered firm would be liable to be rejected.