TaxTMI 
TaxTMI 
1947 (7) TMI 13
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.... the 2nd March, 1940, until the 31st March, 1942, the plaintiff and the deceased husband of the second defendant carried on business in partnership. During that period dealings and transactions took place with the first defendant. As a result, his indebtedness to the partnership amounted to a sum of ₹ 819-14-0, and, by the date of suit, that amount was increased by a sum of ₹ 94-4-0 to a sum of ₹ 914-2-0, the amount for which the suit was instituted. It is alleged, and, so far as the matters relevant to this appeal are concerned, it is not in dispute, that there was some arrangement by which the plaintiff became entitled to the whole of the monies alleged to be recoverable from the first defendant. Hence the suit was broug....
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....ions of Sub-sections (1) and (2) shall not affect any right or power to realise the property of a dissolved firm. It is to be noticed that the Indian Partnership Act places no prohibition upon an unregistered partnership making contracts either between the partners inter se or with some third party nor upon an unregistered partnership acquiring property or assets. All that it does is to make a suit instituted by an unregistered partnership, to recover property, unenforceable. But relief from the disability can be obtained at any time as long as the partnership is in existence, and if the partnership is registered before the suit is instituted the partnership can recover its property and sue on contracts made with third parties even when tho....
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....hip can be removed. 7. The words in Sub-section (3) of Section 69 which I have quoted above are very wide. The sub-section enacts that the provisions of the two previous subsections shall not affect any right or power to realise the property of a dissolved firm. It is the right of all the partners, or by some arrangement as between themselves, one or more, to realise the property of their late partnership. In the course of the argument it has not been suggested that moneys due to the partnership from a third party in respect of dealings between him and the partnership do not form part of the partnership property. It seems to me that the intention of the Legislature was to inflict disability for non-registration only during the subsistence ....