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Issues: Whether an insolvency petition filed by partners of an unregistered firm is barred by the partnership registration provisions on the footing that it is a proceeding to enforce a right arising from contract.
Analysis: The statutory right of a creditor to seek adjudication of a debtor as insolvent is distinct from a suit or other proceeding to enforce a contractual claim. The insolvency proceeding is intended to have the debtor's estate administered and distributed for the benefit of creditors as a class, and is not a proceeding for enforcement of the underlying debt by way of contract. The fact that the petitioners were partners of a firm and the debt was due to the firm did not take away their statutory right to present an insolvency petition. The debt was also legally recoverable and exceeded the statutory minimum.
Conclusion: The bar on suits and other proceedings to enforce contractual rights by an unregistered firm did not apply, and the insolvency petition was maintainable.
Final Conclusion: The dismissal of the insolvency petition was set aside and the matter was directed to be restored and disposed of according to law.
Ratio Decidendi: A petition in insolvency is a statutory proceeding to administer the debtor's estate for the benefit of creditors and is not a proceeding to enforce a right arising from contract, so the firm-registration bar does not apply to such a petition.
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