Non Intimation To Registrar About Reconstitution

970 votes

As an advocate, Yes, generally. A reconstituted firm, even with changes in address and partners, retains its legal identity for the purpose of pursuing a recovery suit, provided the reconstitution was done in accordance with the Indian Partnership Act, 1932, and the firm is properly registered. The new partners step into the shoes of the old for most purposes related to the firm's ongoing business, including existing debts owed to it. The key is the continuity of the firm as a legal entity. Crucially, Section 69 of the Indian Partnership Act, 1932, mandates registration for a firm to enforce contractual rights through a suit against a third party. Therefore, ensure the firm's registration is current and reflects the changes. Any delay or defect in registration post-reconstitution could potentially impede the suit's maintainability. The altered partnership deed evidencing the reconstitution should be duly executed and filed with the Registrar of Firms.

Advocate Mahrukh Khan LawRato

889 votes

A reconstitution of the firm, which involves changes in the partnership agreement, does not automatically disqualify the firm from filing a recovery suit. However, the firm must ensure it meets the requirements of registration and proper representation.

Advocate Pankaj Bajaj LawRato