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…
CA Foundation · Business Laws · PYQS · September 2025
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 the provisions of the Indian Partnership Act, 1932? Give justification also. (ii) A filed a suit against M/s ABC & Associates for claiming shares of the assets on its dissolution.
Suggested Answer and Working Notes:
(ii) A filed a suit against M/s. ABC & Associates for claiming share of the assets on its dissolution: The said suit by A is Maintainable. Justification: According to Section 69 (3) of the Indian Partnership Act,1932, a partner of an unregistered firm is precluded from bringing legal action against the firm. But such a person may sue for realization of his share in the firm’s property where the firm is dissolved. Here, A’s claim is valid as the shares are the assets of the dissolved firm and A can claim it even if the firm is unregistered.
Topics: The Indian Partnership Act, 1932
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