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An unregistered firm purchased goods worth ₹1,000 from W in whole favour a cheque was issued which was dishonoured. At the same time, this firm sold other goods worth ₹600 to W. W sued the unregistered firm for the recovery of ₹1,000. The firm pleaded that W also owed ₹600 to the firm, the same should be adjusted against the claim in question. Is W’s suit maintainable? is the contention of the unregistered firm correct?
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An unregistered firm purchased goods worth ₹1,000 from W in whole favo...
Issue:

Is W's suit maintainable and whether the contention of the unregistered firm is correct?


Law:

As per Section 69(2) of the Indian Partnership Act, 1932, an unregistered firm cannot sue.

As per Section 62 of the Indian Contract Act, 1872, if a party to a contract has committed a breach, the other party can file a suit for the recovery of the amount due.

As per Section 44 of the Indian Partnership Act, 1932, partners are jointly and severally liable for the debts of the firm.


Application:

Here, the unregistered firm had purchased goods worth ₹1,000 from W, and in return, issued a cheque which was dishonoured. Also, the firm had sold goods worth ₹600 to W. Now, W has filed a suit for the recovery of ₹1,000.

As per Section 69(2) of the Indian Partnership Act, 1932, an unregistered firm cannot sue. Hence, the suit filed by W against the unregistered firm is not maintainable.

However, the unregistered firm had sold goods worth ₹600 to W. As per Section 44 of the Indian Partnership Act, 1932, partners are jointly and severally liable for the debts of the firm. Hence, the unregistered firm can claim ₹600 from W to offset the claim in question.


Conclusion:

W's suit is not maintainable against the unregistered firm. However, the unregistered firm can claim ₹600 from W to offset the claim in question.
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An unregistered firm purchased goods worth ₹1,000 from W in whole favour a cheque was issued which was dishonoured. At the same time, this firm sold other goods worth ₹600 to W. W sued the unregistered firm for the recovery of ₹1,000. The firm pleaded that W also owed ₹600 to the firm, the same should be adjusted against the claim in question. Is W’s suit maintainable? is the contention of the unregistered firm correct?
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An unregistered firm purchased goods worth ₹1,000 from W in whole favour a cheque was issued which was dishonoured. At the same time, this firm sold other goods worth ₹600 to W. W sued the unregistered firm for the recovery of ₹1,000. The firm pleaded that W also owed ₹600 to the firm, the same should be adjusted against the claim in question. Is W’s suit maintainable? is the contention of the unregistered firm correct? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An unregistered firm purchased goods worth ₹1,000 from W in whole favour a cheque was issued which was dishonoured. At the same time, this firm sold other goods worth ₹600 to W. W sued the unregistered firm for the recovery of ₹1,000. The firm pleaded that W also owed ₹600 to the firm, the same should be adjusted against the claim in question. Is W’s suit maintainable? is the contention of the unregistered firm correct? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An unregistered firm purchased goods worth ₹1,000 from W in whole favour a cheque was issued which was dishonoured. At the same time, this firm sold other goods worth ₹600 to W. W sued the unregistered firm for the recovery of ₹1,000. The firm pleaded that W also owed ₹600 to the firm, the same should be adjusted against the claim in question. Is W’s suit maintainable? is the contention of the unregistered firm correct?.
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