( 1 ) THE report of the Special Committee on basis of which the Partnership Act, 1932 was passed later in paragraph 17 noticed:

"the outlines of the scheme are briefly as follows. The English precedent in so far as it makes registration compulsory and imposes a penalty for non-registration has not been followed, as it is considered that this step would be too drastic for a beginning in india, and would introduce all the difficulties connected with small or ephemeral undertakings. Instead, it is proposed that registration should lie entirely within the discretion of the firm or partner concerned; but, following the engiish precedent, any firm which is not registered will be unable to enforce its claim against third parties in the civil court; and any partner who is not registered will be unable to enforce his claims either against third parties or against fellow partners"

( 2 ) THE above extract refers to the English precedent which is partly followed and party not enacted in Section 69 of the Indian Partnership act. Section 69 of the Partnership Act unfolds in the following words:-

"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 fir 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 of 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 realise the property of a dissolved firm, or (b) the powers 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 realise 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 1 (the territories to which this Act extends), or whose places of business in 2 (the said territoies), are situated in areas to which, by notification under 3 (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 ) THE provisions are clear and unambiguous. Sub-section (1) to Section 69 of the Partnership Act in so many words state that no suit to enforce a right arising from a contract or conferred by Partnership act can be instituted in any court by or on behalf of any person suing as a partner in a firm against the firm unless the same is registered and the person suing is shown as one of the partners in the said register. Sub-section (2) to Section 69 further prescribes that no suit to enforce a right arising from a contract can be instituted in any court by or on behalf of the firm against any third person unless the firm is registered. Sub-section (3) to Section 69 also cannot be ignored and in so many words state that provisions of sub-section (1) and (2) shall also apply to a claim of set off or other proceedings to enforce a right arising from a contract but