In Brief
Two partners of an unregistered firm sued another partner to cancel the sale of property purchased with firm funds, claiming he had no authority to sell without written consent of all partners under the Partnership Deed. The Trial Court barred the suit under Section 69 of the Indian Partnership Act, 1932, which prevents unregistered firms from suing. The High Court reversed, holding the plaintiffs sued as co-owners, not as partners. The Supreme Court restored the Trial Court's order, holding that the suit was fundamentally grounded in enforcing partnership rights under the Deed, not co-ownership, and therefore remained barred by Section 69 regardless of how the plaint was framed.
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