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Showing posts from January, 2025

Can a Partner sue another partner for recovery of money when firm is unregistered?

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  Shubham Budhiraja [1] A and B entered into a partnership through an unregistered partnership deed. A filed a suit for recovery against B. The Trial Court held suit to be maintainable but HC reversed the findings. The Hon’ble Supreme Court held as under: [2]   1.     Section 69 is mandatory in character and a suit instituted by a plaintiff in respect of a right which was vested in him by virtue of a contract and entered into in his capacity as a partner of a partnership firm, would be void, if such a firm was unregistered.   2.     Section 69(1) prohibits a suit amongst the partners of an unregistered partnership firm, for the enforcement of a right either arising from a contract or conferred by the Act, unless the suit amongst the partners is in the nature of dissolution of the partnership firm and/or rendition of accounts. Section 69(2) prohibits the institution of a suit by an unregistered firm against third persons for the en...

Test/ basis for seeking exemption from the mandate of pre-suit mediation in a commercial suit?

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    Shubham Budhiraja [1]   A and B entered into an agreement regarding supply of kitchen equipment’s. A filed a suit for recovery against B for supplying inferior quality of goods at higher prices. During the suit, A filed an application seeking exemption from undergoing pre-suit mediation on the ground that A is in need of money and any delay would cause irreparable harm to A. The Hon’ble Delhi High Court rejected the A’s application and held as under [2] :   1.     It is well settled that exemption from invoking pre-litigation mediation can be granted only when very urgent reliefs are sought by the Plaintiff and it is demonstrated that unless urgent reliefs are not granted the suit itself would become infructuous.   2.     The Plaintiff has to demonstrate that if the parties are sent to pre-litigation mediation, then the Defendant will take steps which will make the Suit infructuous.   3.   ...