Sec.69(2) will get attracted only when the suit is filed to enforce a right arising from a contract - If the suit is for enforcing a common law right, then, even an unregistered firm can do so - any transfer made by one Partner in respect of his interest in Firm would not confer any right upon transferee - Assignee cannot demand accounts from existing Partner during continuance of Firm Transferee is only entitled to receive share of profits of his transferring share in Firm.

Citation 

2017 (3) CTC 449 (Mad)

2017 (2) LW 877

IN THE HIGH COURT OF MADRAS

N. Sathish Kumar, J.Appeal Suit No. 245 of 2011 & M.P. No. 1 of 2011 & C.M. No.6262 of 2017.April 19, 2017

Sb Steel Industries, Rep. by Its Partner, Rattanlal Tantia; Rattanlal Tantia; Sachin Tantia.         ...Appellant

Vs...

India Re-rolling Mills, Rep. by Its Partner, Vinod Kumar Fatehpuria                                        ...Respondent

Partnership Act, 1932 (9 of 1932), Section 29 Rights of Transferee or a Partner's interest - Assignment of rights of Partners of Firm - Lessee of Firm's property obtained assignment from some of Partners of Firm Right of Assignee - Nature of Right - Contention of Assignee that Suit for recovery of possession instituted by Firm is legally unsustainable Held, any transfer made by one Partner in respect of his interest in Firm would not confer any right upon transferee to interfere with conduct of business - Assignee cannot demand accounts from existing Partner during continuance of Firm Transferee is only entitled to receive share of profits of his transferring share in Firm and he is bound to accept account of profits agreed to by Partners Assignee will not get any right to claim title or interest either in property or assets of Firm Right of Assignee to claim share of assets will accrue after dissolution of Firm.