The Indian Partnership Act does not make the registration of firms compulsory, yet the consequences or disabilities of non-registration have a…

The Indian Partnership Act,1932 does not make the registration of firms compulsory nor does it impose any penalty for non-registration. However, under Section 69, non-registration of partnership gives rise to a number of disabilities. Although registration of firms is not compulsory, yet the consequences or disabilities of non-registration have a persuasive pressure for their registration. Exceptions: Non-registration of a firm does not, however affect the following rights: The right of third parties to sue the firm or any partner.The right of partners to sue for the dissolution of the firm or for the settlement of the accounts of a dissolved firm, or for realization of the property of a dissolved firm.The power of an Official Assignees, Receiver of Court to release the property of the insolvent partner and to bring an action.The right to sue or claim a set-off if the value of suit does not exceed 100in value.The right to suit and proceeding instituted by legal representatives or heirs of the deceased partner of a firm for accounts of the firm or to realise the property of the firm.