SC Rejects Fee Claim by Unregistered Law Firm, Upholds Madras HC’s Ruling on Partnership Act

The Supreme Court recently dismissed The Chennai Law Firm’s plea to recover ₹6.57 lakh from Reyvish Associates Pvt Ltd, citing Section 69(2) of the Indian Partnership Act, 1932, which prevents unregistered firms from enforcing contractual claims through legal proceedings.

The firm was contracted for legal work under the SARFAESI Act and sought unpaid fees, but the appellate court ruled against it, affirming its unregistered status, and also upheld the Madras High Court position.

The Court clarified that unregistered law firms cannot claim unpaid fees in court, reinforcing the importance of legal registration for partnerships.