Q.An unregistered partnership firm wishes to sue a third party to recover a business debt owed to it. Under Section 69 of the Indian Partnership Act, 1932, this suit is:
(A) Permitted, since registration is voluntary
(B) Barred — an unregistered firm cannot sue a third party to enforce a contractual right
(C) Permitted only if all partners personally sign the suit
(D) Barred permanently, even after later registration

Registration is optional to start a firm, but Section 69 still blocks the firm's own access to the courts until it registers.

Section 69 of the Indian Partnership Act, 1932 provides that an unregistered firm, or any partner suing on its behalf, cannot enforce a right arising from a contract against a third party until the firm is registered.

Option-by-option analysis:

• (A) Incorrect — registration being voluntary to START the firm does not remove the Section 69 disability on suing.
• (B) Correct — this is exactly the Section 69 bar on an unregistered firm's own right to sue. …