As the Division Bench has expressed its inability to agree with the view taken by this Court in Amit Desai v. M/s. Shine Enterprises1, this matter has been referred to the Full Bench, to decide the question as to "Whether bar contained under Section 69(2) of the Partnership Act for institution of a suit to enforce a right arising from a contract by an unregistered firm can be extended to criminal proceedings launched for the offence under Section 138 of the Negotiable Instruments Act or not."

2. This controversy has been raised when a complaint lodged by an unregistered firm, has been entertained under Section 138 of the Negotiable Instruments Act, 1881 (for purposes of brevity, henceforth referred to as the Act"). The accused had raised an objection about its maintainability on the premise that the complainant being an unregistered partnership firm, the bar contained under Section 69 of Indian Partnership Act, 1932 is attracted. Section 69 of the Indian Partnership Act, 1932 is attracted. Section 69 of the Indian Partnership Act, 1932, to the extent relevant for the present enquiry, reads as under:

Section 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 persons 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-section (1) and (2) shall apply also to a claim of set-oft or other proceeding to enforce a right arising from a contract, but shall not affect-

(a) 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

(b) the power of an official assignee, receiver or Court under the Presidency-towns Insolvency Act, 1909 (3 of 1909) or the Provincial Insolvency Act, 1920 (5 of 1920), to realize the property of an insolvent partner.

(4) This section shall not apply-

(a) to firms or to partners in firms which have no place of business in the territories to which this Act extends, or whose places or business in the said territories are situated in areas to which, by notification under Section 56, this Chapter does not apply, or

(b) 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 (5 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.

3. Sub-Section (1) of Section 69 creates a bar from instituting a suit by or on behalf of any person suing as a partner in a firm against the firm or any other partner in a firm for enforcing any right arising from a contract or for purposes of enforcing a right conferred by and under the Partnership Act itself. Sub-Section (2) creates a similar bar for instituting a suit by or on behalf of 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, when such a suit is instituted to enforce a right arising from a contract. Sub-Section (3) merely clarified that the bar contained under sub-sections (1) and (2) shall also apply to a claim of set off or other proceeding brought out to enforce a right arising from a contract.

4. The purpose behind