Partner of Unregistered Firm Can't Sue Other Partners for Recovery Under Sec 69 of the Act : SC

The Supreme Court held that partners of an unregistered firm cannot enforce contractual rights against each other due to the bar under Section 69(1) of the Partnership Act, 1932.

This restriction applies even before the firm's business begins, but exceptions under Section 69(3) allow suits for dissolution, rendition of accounts, or realization of property of a dissolved firm.

The Court upheld the Andhra Pradesh High Court's dismissal of a recovery suit filed by unregistered firm partners, citing lack of jurisdiction under Section 69(1).

It clarified that the petitioners should have filed a dissolution suit, as such suits are not barred under the Act.