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CMA Intermediate · Business Laws and Ethics · Indian Partnership Act, 1932

An unregistered firm is dissolved. One partner, Meera, files a suit against the other partners for rendition of accounts of the dissolved firm. Which statement is correct under section 69?

The suit is not barred. Section 69(3)(a) saves the right to sue for dissolution or for accounts of a dissolved firm, and the power to realise its property, so non-registration does not prevent Meera from suing the other partners for accounts.

  1. AThe suit is barred because the firm was not registered
  2. BThe suit is barred unless Meera is shown in the Register of Firms
  3. CThe suit is maintainable only if the firm registers after dissolution
  4. DThe suit is not barred, because non-registration does not affect the right to sue for accounts of a dissolved firmCorrect

Explanation

Section 69(3)(a) provides that the bar in sub-sections (1) and (2) does not affect the enforcement of any right to sue for dissolution of a firm or for accounts of a dissolved firm, or the power to realise the property of a dissolved firm. Hence registration is not a precondition for Meera's suit.

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