DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

VISAKHAPATNAM, A.P., INDIA

PROJECT TITLE
REGISTRATION AND DISSOLUTION OF FIRMS

SUBJECT
LAW OF CONTRACTS II

NAME OF THE FACULTY

Asst. Prof. Jogi Naidu

Name of the Candidate

Roll No. & Semester
T. AKASH KUMAR VENKATA SAI
19LLB068
3rd SEMESTER
 ABSTRACT
What is a firm? Persons who entered into a partnership with one another are called
individually ‘Partners’ and collectively ‘A firm’ and firm name is that under which their
business is carried on. Partnership can arise between ‘persons’. A partnership firm is not a
legal person and therefore a firm as such is not capable of entering into partnership with
another firm or individuals. The partners of a firm can, however, enter into partnership in
their individual capacity with another individual.

Registration of a firm is at the sole discretion of the partners in the firm. The Partnership Act
does not demand registration as a mandatory process that has to be adhered to. The firm is
registered when the registrar of firms is satisfied with compliance of the section 58 of the
Partnership Act, 1932. Therefore section 58 of Partnership Act, 1932 deals with Registration
of a firm.

Dissolution of partnership firm means coming to an end of the relation known as partnership,
between various partners. When one or more partners cease to be partners but others continue
the business in partnership firm, there is dissolution of partnership between the outgoing
partners on one hand and remaining partners on the other. The firm is dissolute when the
registrar of firm is satisfied with compliance of the section 39 of the Partnership Act, 1932.
Therefore section 39 of Partnership Act, 1932 deals with the dissolution of firms.

The Act does not make the registration of partnership firms compulsory in India nor does the
Act impose any penalties for non-registration. The procedure for registration are so great that
generally the partners of a firm would like to get the firm registered. In this paper, the
researcher would analyze the procedure of registration and dissolution of the firms with
examples.
 SYNOPSIS

INTRODUCTION

Under section 51-71 and 39-55 of Indian Partnership Act, 1932 deals with registration of
firms and dissolution of firms respectively. Registration of partnership firms is nothing but
two or more persons entering into a partnership and forming a firm (group). Dissolution of
partnership firm is end of the partnership between the members of the firm. It happens with
and without the intervention of the courts. This paper deals with all the process related from
registration to dissolution of firms.

OBJECTIVE OF THE STUDY

The objective of the study is to know the process of registration and dissolution of firms.

SCOPE OF THE STUDY

The scope of the study is limited to Indian Law of Contracts.

SIGNIFICANE OF THE STUDY

The study helps to understand the whole process of registration and dissolution of firms.

RESEARCH METHODOLOGY

The research methodology is doctrinal type of research.

TYPE OF RESEARCH

The research is descriptive and explanatory.

RESEARCH QUESTIONS

 Can a partner of an unregistered firm can file a suit against the firm?

 Whether dissolution can be done without the intervention of the court?