Question

What are the consequences of non-registration of a Partnership?

Answer 1

1. The consequences of non-registration include that an unregistered firm cannot enforce its claims against third parties in court, sue its partners or be sued by them, nor file suits among partners.
2. It also cannot claim adjustment of claims exceeding ₹ 100.
3. However, third parties can sue the unregistered firm and its partners.
4. Non-registration thus limits legal protections and the ability to enforce rights in courts, adversely affecting firm operations and partner disputes.