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Cheating Charges Against Regiatered Firm But Not Updated


24-Jun-2025 (In Civil Law)
If the registered firm. And there is dispute regarding forgery and cheating charges against the original regiatered partner by other registered partner still he can sue third party or not... Unilateraly for the firm
Answers (1)

Answer #1
581 votes
As an advocate, it is crucial to analyze the firm's registration status and the nature of the dispute. Assuming the firm is duly registered, Section 18 of the Indian Partnership Act, 1932, generally empowers a partner to act as an agent of the firm for the purpose of its business. Therefore, an original registered partner, even while facing internal disputes concerning forgery and cheating charges from another partner, retains the inherent authority to sue a third party on behalf of the firm, provided such action falls within the ordinary course of the firm's business and is intended to protect the firm's interests. However, the viability of such a unilateral suit may be significantly impacted by the ongoing internal dispute, as the third party might challenge the suing partner's authority, and the court may require all partners to be joined or consider the impact of the internal discord on the firm's legal standing. The specific facts of the case, including the scope of the alleged forgery and cheating, and the terms of the partnership deed, would heavily influence the court's determination of the suing partner's authority and the maintainability of the suit.
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