The bar in terms of section 69(2) of the Indian Partnership Act, 1932, would not apply to applications filed under the IBC – M/S Shree Dev Chemicals Corporation Vs. Gammon India Limited – NCLT Mumbai Bench
In terms of section 69(2) of the Indian Partnership Act, 1932, no suit to enforce a right arising from a contract shall be initiated in any court by or on behalf of the firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the Firm. NCLT held that it is clear from the above that the provision would apply only to a ‘suit’ and not to proceedings. Applications filed under the IBC are not ‘suits’ but only proceedings, and therefore, we hold that the bar in terms of section 69(2) of the Indian Partnership Act, 1932, would not apply to applications filed under the IBC.
