CAIIB BRBL Module D Unit 15 : Effect of Non-Registration

24/11/2023

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CAIIB Paper 4 BRBL Module D Unit 15 : Effect of Non-Registration (New Syllabus)

IIBF has released the New Syllabus Exam Pattern for CAIIB Exam 2023. Following the format of the current exam, CAIIB 2023 will have now four papers. The CAIIB Paper 4 (BANKING REGULATIONS AND BUSINESS LAWS) includes an important topic called “Effect of Non-Registration”. Every candidate who are appearing for the CAIIB Certification Examination 2023 must understand each unit included in the syllabus.

In this article, we are going to cover all the necessary details of CAIIB Paper 4 (BRBL) Module D (COMMERCIAL & OTHER LAWS WITH REFERENCE TO BANKING OPERATIONS) Unit 15 : Effect of Non-Registration, Aspirants must go through this article to better understand the topic, Effect of Non-Registration and practice using our Online Mock Test Series to strengthen their knowledge of Effect of Non-Registration. Unit 15 : Effect of Non-Registration

Registration

The partners may or may not enter into a partnership deed and may decide to have an oral partnership if they have a strong understanding amongst themselves. Further, even if a partnership deed is entered into by the partners they may not opt for registration of the partnership firm.
However, the Partnership Act casts certain disabilities on a partnership firm that is not registered with the Registrar of Partnership Firms. Due to this provision which is stated in the Section 69, a majority of the partnership firms decide to register the firm to avoid future hassles and complexities on solving issues amongst the partners as well as with third parties. However, the enforcement of any right to sue, for matters relating to the dissolution of a firm is not affected and can be brought before the Court of Law.

Effect Of Non-registration

The provisions of Sec. 69 states as follows-

No suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any Court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm.
No suit to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm

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, but shall not affect—

The enforcement of any right to sue for the dissolution of a firm or for accounts of a dissolved firm, or any right or power to realize the property of a dissolved firm, or
The powers of an official assignee, receiver or Court under the Presidency-towns Insolvency Act, 1909 (2 of 1909), or the Provincial Insolvency Act, 1920 (5 of 1920), to realize the property of an insolvent partner.

This section shall not apply—

To firms or to partners in firms which have no place of business in the territories to which this Act extends, or whose places of business in the said territories are situated in areas to which, by notification under section 56, this Chapter does not apply, or
To any suit or claim of set-off not exceeding one hundred rupees in value which, in the Presidency towns, is not of a kind specified in section 19 of the Presidency Small Cause Courts Act, 1882 (15 of 1882), or, outside the Presidency-towns, is not of a kind specified in the Second Schedule to the Provincial Small Cause Courts Act, 1887 (9 of 1887), or to any proceeding in execution or other proceeding incidental to or arising from any such suit or claim.

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CAIIB Paper 4 (BRBL) Module D Unit 15-Effect of Non-Registration ( Ambitious_Baba )