A, B and C are partners in an unregistered partnership firm named M/s ABC & Associates. Is the suit maintainable in the following cases as per…

(i) A filed a suit against B who had stolen the goods of the firm: The said suit by A is Maintainable. Justification: According to Section 69 (1) of the Indian Partnership Act,1932, a partner of an unregistered firm cannot file a suit in any court against the firm or any partner to enforce a right arising from a contract, unless the firm is registered. Section 69 only bars civil suits to enforce contractual rights. It does not prevent criminal action. But, in this case, A had filed a suit against B for stealing the goods of the firm which is a criminal offense. Hence, the suit filed against B for the theft of the goods of the firm is maintainable.