An unregistered firm can also access the right under section 138 of NI: HC

The Bombay High Court Nagpur Bench on Saturday broke the presumption that an unregistered firm cannot file a complaint under sec 138 of NI. It strictly held that though sec 69(2) of Indian Partnership Act creates a bar for the unregistered firm to hold any action against the third party, it does not mean that criminal liability can be escaped because of this provision.  

The bench consisting of Justice PN Deshmukh and Justice Pushpa V Ganediwala was of the view that section 69(2) must be interpreted in simple language and it should not be stretched which creates a vacuum for the people to escape the criminal liability.

The court also observe the judgment of Andhra High court in the case of AV Ramanaiah v. M. Shekhara, ALD(CRI) 2009 2 801, in which court was of the view that though section 69 creates a bar for an unregistered firm to access their rights against the third party but it does not mean that it will create a bar against the rights that are arising from another statue, relying on this judgment Nagpur High Court bench stated that section 69 of Indian Partnership Act do not create any hindrance in accessing right under section 138 of NI Act.

The Bombay High Court is not the first court to give such judgment many other courts have also handed over such judgments regarding an unregistered firm using their rights under section 138 of NI Act.