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Recovery Suit Against Third Party For Recovery
23-Jun-2025 (In Civil Law)
Can a partnership firm file recovery suit against third party if a individual partner facing criminal charges related firm and without consent of other partner
As an advocate,
In India, a partnership firm can generally file a recovery suit against a third party, as a partner typically has implied authority to act as an agent of the firm for acts done in the ordinary course of business, which includes initiating legal proceedings. However, if the firm is unregistered, Section 69(2) of the Indian Partnership Act, 1932, generally bars it from filing a suit to enforce a right arising from a contract against a third party. The fact that an individual partner faces criminal charges related to the firm without the consent of another partner does not, by itself, prevent the firm from filing a recovery suit, provided the suit falls within the scope of the firm's business and complies with the registration requirements; the criminal charges against an individual partner are distinct from the civil remedies available to the firm.
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Adv. Mahrukh Khan
Mumbai | 200+ Answers
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