Delhi High Court Ruling on Unregistered Firms
An unregistered firm can sue to enforce statutory or common law rights, according to a recent ruling by the Delhi High Court.
Section 69 of the Indian Partnership Act, 1932 has an embargo on an un-registered firm from filing a suit or any...
In the case at hand, an unregistered partnership firm challenged a tax demand of over ₹50 lakh raised against it through its partner. The Department objected to the maintainability of the petition, stating that the firm is unregistered.
The High Court rejected the Department's claim, observing that since the partner has also been impleaded, it cannot be held that the writ petition is not maintainable.
- Case title: Amit Kumar Basau & Anr. vs. Sales Tax Officer Class II Avato Ward 13 (Special Zone) Zone 12 Delhi & Ors.
- Counsel for Petitioners: Naman Mehta, Advs
- Counsel for Respondents: Mr. Anoushka Bhalla, Adv
Author's summary: Delhi High Court allows unregistered firm to sue.
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