Nitin, Mohit and Palak are partners in a firm NMP associates. They have been carrying on stationary business successfully for last many years. This year Naveen, a vendor, supplied sub-standard paper which was not as per specifications. Because of this, the entire consignment to Singapore got rejected and the firm had to bear a big loss. All the partners approached a lawyer to file a case against Naveen. Lawyer told them that they could not file a case against Naveen.(a) Why were the partners not able to file a case against Naveen? (b) Describe the procedure the firm should follow to file a case in such a situation in future.

Question

Accepted Answer

(a) The partners were not able to file a case because their firm was not registered. Non-registration of a partnership firm means that a right from a contract cannot be enforced in any court by or on behalf of the firm against any third party. (b) The firm should get itself registered by filing an application with the Registrar of Firms including firm name, place of business, partners' details, and duration. Every partner must verify and sign the application. Enclose Form-I, affidavit, certified copy of partnership deed, and proof of business place. The Registrar will issue a Certificate of Registration.