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Issues: Whether Section 69 of the Partnership Act, 1932 barred enforcement of an arbitration award or the making of the award rule of court when the respondent firm was unregistered.
Analysis: Section 69 prohibits an unregistered firm from instituting a suit or other proceeding to enforce a contractual right in court. The bar does not extend to proceedings before an arbitrator where the reference is made at the instance of the opposite party, nor to post-award proceedings in which what is enforced is the award itself, which crystallises the parties' rights and is not the direct enforcement of the underlying contract. The respondent in the present matter had not itself initiated proceedings to enforce any contractual right; it was only resisting the appellant's objections to the award.
Conclusion: Section 69 did not bar the proceedings, and the objection based on non-registration failed.
Final Conclusion: The appeal was dismissed, and the courts below were upheld on the preliminary issue relating to Section 69.
Ratio Decidendi: The statutory bar against an unregistered firm instituting proceedings to enforce contractual rights does not apply to arbitration proceedings initiated by the opposite party or to post-award proceedings enforcing the award itself.