In Brief
The petitioners, as partners of an unregistered partnership firm, filed a suit to recover Rs. 30 lakh (partnership capital) from another partner. The High Court dismissed the suit as unmaintainable under Section 69(1) of the Indian Partnership Act, 1932, which bars suits by partners of unregistered firms to enforce partnership contract rights. The Supreme Court upheld this decision, holding that Section 69(1) is mandatory and applies regardless of whether the partnership business had commenced. The Court noted that while suits for dissolution and rendition of accounts are excepted, a bare recovery suit does not qualify. The petition was dismissed.
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