Explanation:
In order to understand why the correct answer is option 'B', let's break down the concept of partnership registration and its implications on civil and criminal proceedings.

Partnership Registration:
Partnership registration refers to the process of legally recording a partnership firm with the relevant authorities. It involves submitting the necessary documents and information to the Registrar of Firms or any other designated authority.

Implications of Non-Registration:
When a partnership firm fails to register itself, it does not enjoy certain benefits and legal protections. However, the non-registration of a partnership does not act as a complete bar for civil or criminal proceedings against the firm or its partners.

Civil Proceedings:
Civil proceedings involve disputes between individuals or organizations seeking legal remedies or compensation for harm suffered. In the case of a non-registered partnership, it can still be a party to civil proceedings. The partners can be held personally liable for any obligations or debts of the partnership firm.

Criminal Proceedings:
Criminal proceedings involve the prosecution of individuals or organizations for violating laws. Non-registration of a partnership does not shield the partners from criminal liability. If any partner or the partnership firm commits a crime, they can be subject to criminal proceedings irrespective of their registration status.

Explanation of the Correct Answer:
The correct answer to the question is option 'B' - Criminal proceeding. This means that non-registration of a partnership firm does not act as a bar for criminal proceedings against the firm or its partners. Criminal acts committed by the partners or the firm can still be prosecuted, regardless of their registration status.

Conclusion:
In summary, while registration of a partnership firm is important for enjoying certain benefits and legal protections, its non-registration does not prevent civil or criminal proceedings against the firm or its partners. The correct answer option 'B' highlights that non-registration is not a bar for criminal proceedings.