ORDER :

1. Leave granted.

2. The present appeal arises from a suit being OS No. 1071 of 2003 filed on 11th December, 2003 by two partners against the remaining partner and an unregistered firm seeking to cancel a sale made on 26th April, 2003 by the defendant partner without the consent of all the partners. A preliminary objection was taken stating that the suit was hit by Section 69 of the Indian Partnership Act, which reads as follows:-

69. Effect of non-registration.-(1) 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.

(2) 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.

(3) The provisions of sub-sections (1) and (2) shall apply also to a claim of set-off or