Multiple choice

Which of the following is incorrect in the context of partnership firms?

  1. Partnership is registered with Registrar of Firms and not the partnership deeds.

  2. Registration of partnership firms is not compulsory.

  3. Registered firms have certain advantages over the unregistered firms.

  4. Non-registration of the firm adversely affects the capacity of the partners to carry on the business.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Two conditions are necessary to enable a partner to sue his co-partners or the- firm. First, the firm should be registered and second, the name of the partner suing must figure in registration. The scope of the sub-section was examined by the Bombay High Court in S. H. Patel v. Husseinbhai Mohd, a case where the action was between two former partners to enforce an agreement restraining the outgoing partner from carrying on in some area of any business similar to that of the firm and the court had to examine whether such suit was maintainable the firm being unregistered.

Keep practicing — related questions