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2019 (7) TMI 1130 - Tri - Insolvency and BankruptcyAdmissibility of application - initiation of Corporate Insolvency Resolution Process (CIRP) - Section 7 of I&B Code, 2016 - Whether the claim of the Applicant firm to the tune of ₹ 17,07,99,230/- arising out of contract dated 31.01.2005 entered with the Corporate Debtor, when the Applicant firm was unregistered, is admissible? HELD THAT:- The object of the section appears to be to protect public against a firm carrying on business under a name which does not disclose to the public the names of the actual partners. In other words an unregistered firm has no legal basis to enter into the contract with third party, because such agreement cannot create legal relationship between the parties, and even registration of the firm subsequent to the signing of the contract will not cure the initial defect, as registration per se shall not validate the agreement. Therefore, a contract entered into by the unregistered firm with the third party is hit by the provisions of Section 69(2) of The Indian Partnership Act, 1932.’ On this score alone the claim of the Applicant firm is not admissible. The claim submitted by the Applicant firm is not substantiated with any documentary evidence. In spite of the request of the Respondent/Resolution Professional made vide email communication dated 07.05.2018, for production of document in support of claim, no proof has been submitted by the Applicant firm till the rejection of the claim. Application dismissed.
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