In Brief
Two partners sued a third partner and their unregistered firm to cancel a property sale made without consent of all partners, citing a clause in the partnership deed. The trial court dismissed the suit as barred by Section 69 of the Indian Partnership Act, which prohibits suits by or on behalf of partners against a firm unless it is registered. The High Court reversed, holding the plaintiffs could sue as co-owners of property. The Supreme Court allowed the appeal, restoring the trial court's order. The Court held that the plaint, read as a whole, was fundamentally based on partnership rights and the partnership deed, and therefore Section 69's bar applied despite an attempt to frame the claim as one between co-owners.
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