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    <title>2006 (11) TMI 730 - Supreme Court</title>
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    <description>Section 69(2) of the Indian Partnership Act bars an unregistered firm from enforcing a contractual right only where the firm itself made the underlying contract with the defendant in its business dealings. Registration after institution does not cure a suit that was defective when filed. Assets and liabilities contributed by a sole proprietor become partnership property, so the former proprietor cannot personally enforce a transferred contractual claim while the partnership subsists. However, where the underlying supply contract was made by the proprietor before the partnership existed, its later transfer to an unregistered firm does not make it a contract entered into by that firm; Section 69(2) is therefore inapplicable.</description>
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    <pubDate>Tue, 07 Nov 2006 00:00:00 +0530</pubDate>
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      <link>https://www.taxtmi.com/caselaws?id=471898</link>
      <description>Section 69(2) of the Indian Partnership Act bars an unregistered firm from enforcing a contractual right only where the firm itself made the underlying contract with the defendant in its business dealings. Registration after institution does not cure a suit that was defective when filed. Assets and liabilities contributed by a sole proprietor become partnership property, so the former proprietor cannot personally enforce a transferred contractual claim while the partnership subsists. However, where the underlying supply contract was made by the proprietor before the partnership existed, its later transfer to an unregistered firm does not make it a contract entered into by that firm; Section 69(2) is therefore inapplicable.</description>
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