In Brief
An unregistered construction partnership firm (Shiv Developers) sued to invalidate a sale deed executed on grounds of fraud and misrepresentation. The defendants contended the suit was barred under Section 69(2) of the Partnership Act, 1932. The High Court upheld this objection, rejecting the plaint. The Supreme Court allowed the appeal, holding that Section 69(2) does not bar suits by unregistered firms when: the transaction does not arise from the firm's business, or the suit seeks common law/statutory remedies (like declarations for fraud), rather than enforcement of contractual rights. The Court restored the Trial Court's order directing the suit to proceed to trial.",
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