Question

Consider the following statements :
1. It is compulsory to have a Partnership Deed.
2. It is compulsory for a partnership firm to get itself registered.
3. A partner of an unregister firm can file a suit for the dissolution of the firm.
Which of the above statement/s is/are not correct ?

• A. 1, 2 and 3
• B. 2 and 3
• C. Only 1
• D. 1 and 3

Answer 1

The correct option is B 2 and 3

According to the Partnership Act, 1932, it is not compulsory for a partnership firm to get itself registered. But partners prefer to get itself registered to overcome following limitations:

1. The partner of an unregistered firm can not file a suit against other partners to settle the disputes.

2. The partner of an unregistered firm can not file a suit for the dissolution of firm.

3. The partner of an unregistered firm can not file a suit against third party or an outsider for recovery of any claim.