1. In the above Notice of Motion, the Plaintiffs have moved this Court for Ad-interim reliefs. However, the Defendants have raised the contention that this Court has no jurisdiction to entertain the suit since the Partnership Firm i.e. Laxmi Developers is not registered under the provisions of the Indian Partnership Act, 1932 (“the Act”). In view thereof, by consent of the parties, the following issue is framed as a preliminary issue and decided hereunder:

“Whether in view of non-registration of the Partnership Firm Laxmi Developers, the present suit is barred under Section 69 of the Indian Partnership Act, 1932”.

2. According to the Plaintiffs, a Partnership Deed was executed on 11th August 1986, between the Plaintiffs and Defendant Nos. 1 to 3. By the said Partnership Deed, the Partnership Firm was constituted under the name and style of “Laxmi Developers” for conducting the business of investment in properties, development of the same and also for sale of shops, flats, commercial premises and to acquire open spaces for development.

3. According to the Plaintiffs, after the constitution of the said Partnership Firm, an application for registration in the prescribed Form A was filed on 16th September 1986, before the Registrar of Firms. The said application was signed by all the Partners including Defendant Nos. 1 to 3. The said application was numbered as AR/26115/D/2/86 by the Registrar of Partnership Firms. In the said application form, the name of Plaintiff No.7, who was a minor at that time, was mentioned in Column “D” instead of Column “G”. Therefore, the Registrar of Partnership Firms issued a notice dated 1st January 1986 addressed to Arvind Raman & Company, Chartered Accountants of the said Laxmi Developers to the effect that in the application form dated 16th September 1986, there is an objection which is required to be removed. A reminder was also sent on 11th December 1989. The Plaintiffs have produced the Income-Tax Returns of Laxmi Developers for the Accounting Years 1987-1988 and 1988-1989, which were filed on 11th August 1986 and also a declaration dated 31st August 1989 under Section 184 (7) filed with the Income-Tax Department for continuation of its registration. The said declaration is also signed by Defendant Nos. 1 to 3 herein. In the Income-Tax Returns, the balance-sheet of the Partnership Firm is also filed for the years 1987-1988 and 1988-1989. The Plaintiffs have also produced a certificate dated 9th June 2012 issued by Vijay M. Dhanak, Partner of M/s.Arvind Raman and Company, Chartered Accountants of the said Partnership Firm Laxmi Developers to the effect that the Partnership Deed dated 11th August 1986 was signed by all the Partners including Defendant Nos. 1 to 3 in his presence and the said Chartered Accountant Firm has also applied for registration of the Partnership Firm, and has received a Permanent Account Number for the said Partnership Firm.

4. According to the Plaintiffs, after the constitution of the said Partnership Firm Laxmi Developers, the said Partnership Firm, under an Agreement of Sale dated 31st August, 1986, purchased property bearing Survey No. 61, Hissa No. 11, corresponding to CTS No. 443, admeasuring about 1072.40 sq. mtrs. situated at Taluka Borivali, Mumbai Suburban District (hereinafter referred to as “the suit property”) from Manilal L. Vora, Navinchandra L. Vora and others for a total consideration of Rs. 4 lakhs. Pursuant to the said Agreement of Sale, the Vendors therein handed over and delivered peaceful possession of the suit property to the Partnership Firm and as such the said Partnership Firm i.e. Laxmi Developers acquired the right, title and possession of the suit property.

5. According to the Plaintiffs, though the said Partnership Firm had purchased the suit property for re-development and construction of new buildings, due to certain technical problems, including the fact that the suit property was a landlocked plot and therefore unless Laxmi Devel