Q.An unregistered partnership firm wants to sue a customer to recover an unpaid trade debt arising from a contract made in the ordinary course of its business. Under Section 69, can it do so?
(A) Yes, registration has no bearing on a firm's ability to sue anyone
(B) No, an unregistered firm cannot sue a third party to enforce a right arising out of a contract made in the ordinary course of its business
(C) Yes, but only if the customer consents in writing
(D) No, because non-registration makes the underlying contract itself void

Section 69's central, most-tested consequence is exactly this: an unregistered firm is disabled from suing a third party on a contract made in its ordinary business. …

Why (B) is correct: Section 69(2) specifically bars an unregistered firm (or anyone suing on its behalf) from instituting a suit against a third party to enforce a right arising from a contract made in the ordinary course of the firm's business.

Why the distractors are wrong:

• (A) is directly contradicted by Section 69's disability.
• (C) invents a 'customer consent' workaround that has no basis in the Act — the disability is absolute for this class of suit, regardless of the third party's willingness. …

A frequent mistake is assuming non-registration makes contracts entered into by the firm void or illegal. It does neither — it only takes away the firm's own ability to enforc …