What are the effects of non-registration of a firm under the Partnership Act, 1932?

The following are the effects of non-registration of a firm under Indian Partnership Act, 1932: Section 69(1) of the Act places a bar on the right of the partners of a firm to sue each other or the firm for enforcing any right arising from a contract or conferred by the Partnership Act, if the firm is not registered and the person suing is or has not been shown in the Register of Firms as a partner in the firm. Further, Section 69(2) places a bar on the institution of a suit by or on behalf of a firm against a third-party if the firm is not registered and the persons suing are or have not been shown in the Register of Firms as partners in the firm. However, there is no bar on the right of third-parties to sue the firm or any partner. Section 69(3) states that the provisions of sub-sections (1) and (2) shall apply also to a claim of set-off or other proceeding to enforce a right arising from a contract.