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CA Foundation · Business Laws · Indian Regulatory Framework

A dispute arises between two partners of a Pune firm, and one of them files a suit for dissolution and accounts. Which authority would ordinarily hear such a civil suit under the regular court structure?

A competent civil court would hear the suit. The Partnership Act sets up no special tribunal for partner disputes, so ordinary civil courts decide them. The Registrar of Firms only records registration, while SAT and CCI handle securities appeals and competition matters respectively.

  1. AThe Securities Appellate Tribunal, as it hears all business disputes
  2. BA competent civil court, since the Partnership Act has no special tribunal for firm disputesCorrect
  3. CThe Registrar of Firms, who decides all partner disputes
  4. DThe Competition Commission of India, as the dispute involves trade

Explanation

The Partnership Act does not create a special tribunal for disputes between partners, so they are heard by ordinary civil courts having jurisdiction. The Registrar of Firms only maintains records of registration and does not adjudicate. SAT and CCI have specific securities and competition roles.

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