(a) State the procedure for registration of firm under the Indian Partnership Act.

(b) Explain the effects of non-registration of a firm.

Ans. (a) Procedure for Registration of Firm-According to S.”58 of the Partnership Act-1. The registration of a firm may be effected at any time by sending by post or delivering to the Registrar of the area in which any place of business of the firm is situated or proposed to be situated, a statement in the prescribed form and accompanied by the prescribed fee, stating.

(a)The firm name;.

(b) The place or principal place of business of the firm;

(c) The names of any other places where the firm carries on business;

(d) The date when each partner joined the firm;

(e) The name in full and permanent address of the partners; and

(f) The duration of the firm. The statement shall be signed by all the partners, or by their agents specially authorised in this behalf.

2. Each person signing the statement shall also verify it in the manner prescribed.

3. A firm name shall not contain any of the following words namely—”Crown”, “Emperor”, “Empress”, “Empire”, “Imperial”, “King”, “Queen”, “Royal”, or words expressing or implying the sanction, approval or patronage of Government except when the State Government signifies its consent to the use of such words as part of the firm name by orders in writing. According to S. 59 when the Registrar is satisued that the provisions of S. 58 have been duly complied with, he shall record an entry of the statement in a Register called the Register of Firms and shall file the statement. Thus, according to S. 58, She registration or a firm may be effected at any time by sending by post or delivering to the Registrar of the area in which any place of business of the firm is situated or proposed to be situated, a statement in the prescribed form and accompanied by the prescribed fee, stating a The firm’s name,

(b) The place or principal place of business of the firm,

(c) The names of any other places where the firm carries on business,

(d) Date when each partner joined the firm,

(e) The names in full and permanent addresses of the partners, and

(f) The duration of the firm. The statement shall be signed by all the partners, or by their agents specially authorised, in this behalf. Each person signing this statement shall verify it in the manner prescribed. When the Registrar is satisfied that the provisions of S. 58 have been duly complied with, he shall record an entry the register of the firms and shall file the statement.

(b) Effects of Non-registration of a Partnership Firm — The effects of non-registration of a firm have been laid down U./S. 69 of the Act which provides as under-

1. No suit to enforce a right arising from a contract conferred by this Act shall be instituted in any Court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm.

2. No suit to enforce a right arising from a-contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing, are or have been shown in the Register of Firms as partners in the firm. Partners ofan unregistered firm who were not also the owners of the goods, sued the common carrier for loss of such goods entrusted for transport. It was held that the suit did not lie since U/S. 69 (2) Partnership Act they were not entitled to enforce any right arising from a contract between the unregistered firm on the one hand and the defendant on the other.

3. The provisions of sub-secs. (1) and (2) shall apply also to a claim of set-off or ether proceeding to cnforcc a right arising from a contract, but shall no affect-(a) The enforcement of any right to sue for the dissolution ofa firm or for accounts of a dissolved firm, or any right or power to realise the property of a dissolved firm, or (b) The powers of an official assignee, receiver or Court under the Presidency-Towns Insolvency Act, 1909 or the Provincial Insolvency Act, 1920 to realise the property of an insolvent partner.

4. This section shall not apply -(a) To firm, or partners in firms which have no place of business in the territories to which this Act extends or whose places of business in the said territories are situated in areas to which, by notification U/S. 56, this Chapter does not apply, or (b) To any suit or claim of set-off not exceeding one hundred rupees in value which in the presidency Town is not ofa kind specified in S. 19 of the Presidency Small Cause Act, 1882, or outside the Presidency Towns, is nor a kind specified in. the Secoud Schedule to the Provincial Small cause Court Act, 1877 or to any proceeding in execution or other proceeding incidental to or arising from any such suit or claim.