THE LIMITED LIABILITY PARTNERSHIP ACT, 2008

2008 · State unknown · central · act_text

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Sections (222)

34A · Accounting and auditing standards.

42 · Partner’s transferable interest.

59 · Foreign limited liability partnerships.

67A · Establishment of Special Courts.

67B · Procedure and powers of Special Court.

67C · Appeal and revision.

68A · Registration offices.

76A · Adjudication of penalties.

77A · Cognizance of offences.

1 · Short title, extent and commencement . — (1) This Act may be called the Limited Liability Partnership Act, 2008.

2 · Definitions . — (1) In this Act, unless the context otherwise requires,—

1 · 31st March, 2009, vide notification No. S.O. 891 (E), dated 31st March, 2009, see Gazette of India, Extraordinary, Part II, Sec. 3(ii).

2 · Subs. by Act 31 of 2021, s. 3, for “sub-section (1) of section 10FR” (w.e.f. 1-4-2022).

3 · Subs. by s. 2, ibid., for "the Companies Act, 1956 (1 of 1956) " (w.e.f. 1-4-2022).

4 · Subs. by s. 3 , ibid ., for "section 3" (w.e.f. 1-4-2022).

5 · Subs. by s. 4, ibid., for “and occupation” (w.e.f. 1-4-2022).

1 · [(ra) "Regional Director" means a person appointed as such by Central Government for the purpose of this Act or the Companies Act, 2013 (18 of 2013), as the case may be.]

2 · [(s) "Registrar" means a person appointed by the Central Government as Registrar, an Additional Registrar, a Joint Registrar, a Deputy Registrar or an Assistant Registrar, for the purpose of this Act or the Companies Act, 2013 (18 of 2013)];

1 · [(ta) "small limited liability partnership" means a limited liability partnership --

1 · Ins. by Act 31 of 2021, s. 3, for clause (s) (w.e.f. 1-4-2022).

2 · Subs. by s. 3, for clause (s) (w.e.f. 1-4-2022).

3 · Limited liability partnership to be body corporate . — (1) A limited liability partnership is a body corporate formed and incorporated under this Act and is a legal entity separate from that of its partners.

4 · Non -applicability of the Indian Partnership Act, 1932 . — Save as otherwise provided, the provisions of the Indian Partnership Act, 1932 (9 of 1932) shall not apply to a limited liability partnership.

5 · Partners . —A —Any individual or body corporate may be a partner in a limited liability partnership:

6 · Minimum number of partners . — (1) Every limited liability partnership shall have at least two partners.

7 · Designated partners . — (1) Every limited liability partnership shall have at least two designated partners who are individuals and at least one of them shall be a resident in India:

1 · Subs. by Act 31 of 2021, s. 3 “sub-section (1) of section 10FB” (w.e.f. 1-4-2022).

2 · . Subs. by s. 2, ibid., for "the Companies Act, 1956 (1 of 1956) " (w.e.f. 1-4-2022).

8 · Liabilities of designated partners . —U —Unless expressly provided otherwise in this Act, a designated partner shall be—

9 · Changes in designated partners . —A —A limited liability partnership may appoint a designated partner within thirty days of a vacancy arising for any reason and provisions of sub-section (4) and sub -section (5) of section 7 shall apply in respect of such new designated partner:

10 · Punishment for contravention of sections 7, 4*** and 9 . — (1) If the limited liability partnership contravenes the provisions of sub-section (1) of section 7, the limited liability partnership and its every partner shall be 5 [liable to a penalty of ten thousand rupees and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for every partner of such limited liability partnership].

1 · Subs. by Act 31 of 2021, s. 4, for “eighty-two days during the immediately preceding one year” (w.e.f. 1-4-2022).

2 · Subs. by s. 4, ibid., for “sections 266A to 266G” (w.e.f. 1-4-2022).

3 · Subs. by s. 2, ibid., for "the Companies Act, 1956 (1 of 1956) " (w.e.f. 1-4-2022).

3 · The figure "8" omitted by s. 5 , ibid., for "(w.e.f. 1-4-2022).

4 · Subs. by s. 5, ibid., for "punishable with fine which shall not be less than ten thousand rupees, but which may extend to five lakh rupees" (w.e.f. 1-4-2022).

1 · [(2) If the limited liability partnership contravenes the provision of sub-section (4) of section 7, such limited liability partnership and its every designated partner shall be liable to a penalty of five thousand rupees and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of fifty thousand rupees for the limited liability partnership and twenty-five thousand rupees for its every designated partner.

11 · Incorporation document . — (1) For a limited liability partnership to be incorporated,—

12 · Incorporation by registration . — (1) When the requirements imposed by clauses (b) and (c) of sub -section (1) of section 11 have been complied with, the Registrar shall retain the incorporation

1 · Subs. by Act 31of 2021, s. 5, for sub-section (2) (w.e.f. 1-4-2022).

13 · Registered office of limited liability partnership and change therein . — (1) Every limited liability partnership shall have a registered office to which all communications and notices may be addressed and where they shall be received.

1 · [(4) If any default is made in complying with the requirements of this section, the limited liability partnership and its every partner shall be liable to a penalty of five hundred rupees for each day during which the default continues, subject to a maximum of fifty thousand rupees for the limited liability partnership and its every partner.]

14 · Effect of registration . — On registration, a limited liability partnership shall, by its name, be capable of—

15 · Name . — (1) Every limited liability partnership shall have either the words "limited liability partnership" or the acronym "LLP" as the last words of its name.

2 · [(b) identical or too nearly resembles to that of any other limited liability partnership or a company or a registered trade mark of any other person under the Trade Marks Act, 1999 (47 of 1999).]

16 · Reservation of name . — (1) A person may apply in such form and manner and accompanied by such fee as may be prescribed to the Registrar for the reservation of a name set out in the application as—

1 · Subs. by Act 31 of 2021, s. 6, for sub-section (4) (w.e.f. 1-4-2022).

2 · Subs. by s. 7, ibid., for clause (b) (w.e.f. 1-4-2022).

1 · [17. Rectification of name of limited liability partnership.—(1) Notwithstanding anything contained in sections 15 and 16, if through inadvertence or otherwise, a limited liability partnership, on its first registration or on its registration by a new name, is registered by a name which is identical with or too nearly resembles to--

18 · [Application for direction to change name in certain circumstances] . Omitted by the Limited liability Partnership (Amendment) Act, 2021 (31 of 2021), s. 9 (w.e.f. 1-4-2022).

19 · Change of registered name . —A —Any limited liability partnership may change its name registered with the Registrar by filing with him a notice of such change in such form and manner and on payment of such fees as may be prescribed.

20 · Penalty for improper use of words "limited liability partnership" or "LLP " . — If any person or persons carry on business under any name or title of which the words "Limited Liability Partnership" or "LLP" or any contraction or imitation thereof is or are the last word or words, that person or each of those persons shall, unless duly incorporated as limited liability partnership, be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees.

1 · Subs. by Act 31 of 2021, s. 8, for section 17 (w.e.f. 1-4-2022).

21 · Publication of name and limited liability . — (1) Every limited liability partnership shall ensure that its invoices, official correspondence and publications bear the following, namely:—

1 · [(2) If the limited liability partnership contravenes the provisions of this section, the limited liability partnership shall be liable to a penalty of ten thousand rupees . ]

22 · . Eligibility to be partners . — On the incorporation of a limited liability partnership, the persons who subscribed their names to the incorporation document shall be its partners and any other person may become a partner of the limited liability partnership by and in accordance with the limited liability partnership agreement.

23 · Relationship of partners . — (1) Save as otherwise provided by this Act, the mutual rights and duties of the partners of a limited liability partnership, and the mutual rights and duties of a limited liability partnership and its partners, shall be governed by the limited liability partnership agreement between the partners, or between the limited liability partnership and its partners.

24 · Cessation of partnership interest . — (1) A person may cease to be a partner of a limited liability partnership in accordance with an agreement with the other partners or, in the absence of agreement with the other partners as to cessation of being a partner, by giving a notice in writing of not less than thirty days to the other partners of his intention to resign as partner.

1 · Subs. by Act 31 of 2021, s. 10, for sub-section (2) (w.e.f. 1-4-2022).

25 · Registration of changes in partners . — (1) Every partner shall inform the limited liability partnership of any change in his name or address within a period of fifteen days of such change.

1 · [(4) If the limited liability partnership contravenes the provisions of sub-section (2), the limited liability partnership and its every designated partner shall be liable to a penalty of ten thousand rupees.

26 · Partner as agent . — Every partner of a limited liability partnership is, for the purpose of the business of the limited liability partnership, the agent of the limited liability partnership, but not of other partners.

1 · Subs. by Act 31 of 2021, s. 11, for sub-sections (4) and (5) (w.e.f. 1-4-2022).

27 · Extent of liability of limited liability partnership . — (1) A limited liability partnership is not bound by anything done by a partner in dealing with a person if—

28 · Extent of liability of partner . — (1) A partner is not personally liable, directly or indirectly for an obligation referred to in sub-section (3) of section 27 solely by reason of being a partner of the limited liability partnership.

29 · Holding out . — (1) Any person, who by words spoken or written or by conduct, represents himself, or knowingly permits himself to be represented to be a partner in a limited liability partnership is liable to any person who has on the faith of any such representation given credit to the limited liability partnership, whether the person representing himself or represented to be a partner does or does not know that the representation has reached the person so giving credit:

30 · Unlimited liability in case of fraud . — (1) In the event of an act carried out by a limited liability partnership, or any of its partners, with intent to defraud creditors of the limited liability partnership or any other person, or for any fraudulent purpose, the liability of the limited liability partnership and partners who acted with intent to defraud creditors or for any fraudulent purpose shall be unlimited for all or any of the debts or other liabilities of the limited liability partnership:

1 · Subs. by Act 31 of 2021, s. 12, for “two years” (w.e.f. 1-4-2022).

31 · Whistle blowing . — (1) The Court or Tribunal may reduce or waive any penalty leviable against any partner or employee of a limited liability partnership, if it is satisfied that—

32 · Form of contribution . — (1) A contribution of a partner may consist of tangible, movable or immovable or intangible property or other benefit to the limited liability partnership, including money, promissory notes, other agreements to contribute cash or property, and contracts for services performed or to be performed.

33 · Obligation to contribute . — (1) The obligation of a partner to contribute money or other property or other benefit or to perform services for a limited liability partnership shall be as per the limited liability partnership agreement.

34 · Maintenance of books of account, other records and audit, etc . — (1) The limited liability partnership shall maintain such proper books of account as may be prescribed relating to its affairs for each year of its existence on cash basis or accrual basis and according to double entry system of accounting and shall maintain the same at its registered office for such period as may be prescribed.

1 · [(5) Any limited liability partnership which fails to comply with the provisions of sub-section (3), such limited liability partnership and its designated partners shall be liable to a penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for every designated partner.

2 · [34A. Accounting and auditing standards.—The Central Government may, in consultation with the National Financial Reporting Authority constituted under section 132 of the Companies Act, 2013 (18 of 2013),--

35 · Annual return . — (1) Every limited liability partnership shall file an annual return duly authenticated with the Registrar within sixty days of closure of its financial year in such form and manner and accompanied by such fee as may be prescribed.

3 · [(2) If any limited liability partnership fails to file its annual return under sub -section (1) before the expiry of the period specified therein, such limited liability partnership and its designated partners shall be liable to a penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for designated partners . ]

36 · Inspection of documents kept by Registrar . — The incorporation document, names of partners and changes, if any, made therein, Statement of Account and Solvency and annual return filed by each limited liability partnership with the Registrar shall be available for inspection by any person in such manner and on payment of such fee as may be prescribed.

37 · Penalty for false statement . — If in any return, statement or other document required by or for the purposes of any of the provisions of this Act, any person makes a statement—

38 · Power of Registrar to obtain information . — (1) In order to obtain such information as the Registrar may consider necessary for the purposes of carrying out the provisions of this Act, the Registrar may require any person including any present or former partner or designated partner or employee of a limited liability partnership to answer any question or make any declaration or supply any details or particulars in writing to him within a reasonable period.

1 · Subs. by Act 31 of 2021, s. 13, for sub-section (5) (w.e.f. 1-4-2022).

2 · Ins. by s. 14, ibid ., (w.e.f. 1-4-2022).

3 · Subs. by s. 15, ibid., for sub-sections (2) and (3) (w.e.f. 1-4-2022).

1 · [39. Compounding of offences.—(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the Regional Director or any other officer not below the rank of Regional Director authorised by the Central Government may compound any offence under this Act which is punishable with fine only, by collecting from a person reasonably suspected of having committed the offence, a sum which may extend to the amount of the maximum fine provided for the offence but shall not be lower than the minimum amount provided for the offence.

40 · Destruction of old records . — The Registrar may destroy any document filed or registered with him in physical form or in electronic form in accordance with such rules as may be prescribed.

41 · Enforcement of duty to make returns, etc . — (1) If any limited liability partnership is in default in complying with—

1 · Subs. by Act 31 of 2021, s. 16, for section 39 (w.e.f. 1-4-2022).

42 · Partner's transferable interest . — (1) The rights of a partner to a share of the profits and losses of the limited liability partnership and to receive distributions in accordance with the limited liability partnership agreement are transferable either wholly or in part.

43 · Investigation of the affairs of limited liability partnership . — (1) The Central Government shall appoint one or more competent persons as inspectors to investigate the affairs of a limited liability partnership and to report thereon in such manner as it may direct if—

44 · Application by partners for investigation . — An application by partners of the limited liability partnership under clause (a) of sub-section (1) of section 43 shall be supported by such evidence as the Tribunal may require for the purpose of showing that the applicants have good reason for requiring the investigation and the Central Government may, before appointing an inspector, require the applicants to give security, of such amount as may be prescribed, for payment of costs of the investigation.

45 · Firm, body corporate or association not to be appointed as inspector . —N —No firm, body corporate or other association shall be appointed as an inspector.

46 · Power of inspectors to carry out investigation into affairs of related entities, etc . — (1) If an inspector appointed by the Central Government to investigate the affairs of a limited liability partnership thinks it necessary for the purposes of his investigation to investigate also the affairs of an entity which has been associated in the past or is presently associated with the limited liability partnership or any present or former partner or designated partner of the limited liability partnership, the inspector shall have the power to do so and shall report on the affairs of the other entity or partner or designated partner, so far as he thinks that the results of his investigation thereof are relevant to the investigation of the affairs of the limited liability partnership.

47 · Production of documents and evidence . — (1) It shall be the duty of the designated partner and partners of the limited liability partnership—

48 · Seizure of documents by inspector . — (1) Where in the course of investigation, the inspector has reasonable ground to believe that the books and papers of, or relating to, the limited liability partnership or other entity or partner or designated partner of such limited liability partnership may be destroyed, mutilated, altered, falsified or secreted, the inspector may make an application to the Judicial Magistrate of the first class, or, as the case may be, the Metropolitan Magistrate, having jurisdiction, for an order for the seizure of such books and papers.

49 · Inspector's report . — (1) The Inspector may , and if so directed by the Central Government , shall make interim reports to that Government, and on the conclusion of the investigation, shall make a final report to the Central Government and any such report shall be written or printed, as the Central Government may direct.

50 · Prosecution . — If, from the report under section 49, it appears to the Central Government that any person in relation to the limited liability partnership or in relation to any other entity whose affairs have been investigated, has been guilty of any offence for which he is liable, the Central Government may prosecute such person for the offence; and it shall be the duty of all partners, designated partners and other employees and agents of the limited liability partnership or other entity, as the case may be, to give the Central Government all assistance in connection with the prosecution which they are reasonably able to give.

51 · Application for winding up of limited liability partnership . — If any such limited liability partnership is liable to be wound up under this Act or any other law for the time being in force, and it appears to the Central Government from any such report under section 49 that it is expedient to do so by reason of any such circumstances as are referred to in sub-clause (i) or sub-clause (ii) of clause (c) of sub -section (3) of section 43, the Central Government may, unless the limited liability partnership is already being wound up by the Tribunal, cause to be presented to the Tribunal by any person authorised by the Central Government in this behalf, a petition for the winding up of the limited liability partnership on the ground that it is just and equitable that it should be wound up.

52 · Proceedings for recovery of damages or property . — If, from any report under section 49, it appears to the Central Government that proceedings ought, in the public interest, to be brought by the limited liability partnership or any entity whose affairs have been investigated,—

53 · Expenses of investigation . — (1) The expenses of, and incidental to, an investigation by an inspector appointed by the Central Government under this Act shall be defrayed in the first instance by the Central Government; but the following persons shall, to the extent mentioned below, be liable to reimburse the Central Government in respect of such expenses, namely:—

54 · Inspector's report to be evidence . —A —A copy of any report of any inspector or inspectors appointed under the provisions of this Act, authenticated in such manner, if any, as may be prescribed, shall be admissible in any legal proceeding as evidence in relation to any matter contained in the report.

55 · Conversion from firm into limited liability partnership . —A —A firm may convert into a limited liability partnership in accordance with the provisions of this Chapter and the Second Schedule.

56 · Conversion from private company into limited liability partnership . —A —A private company may convert into a limited liability partnership in accordance with the provisions of this Chapter and the Third Schedule.

57 · Conversion from unlisted public company into limited liability partnership . —A —An unlisted public company may convert into a limited liability partnership in accordance with the provisions of this Chapter and the Fourth Schedule.

58 · Registration and effect of conversion . — (1) The Registrar, on satisfying that a firm, private company or an unlisted public company, as the case may be, has complied with the provisions of the Second Schedule, the Third Schedule or the Fourth Schedule, as the case may be, shall, subject to the provisions of this Act and the rules made thereunder, register the documents submitted under such Schedule and issue a certificate of registration in such form as the Registrar may determine stating that the limited liability partnership is, on and from the date specified in the certificate, registered under this Act:

1 · Subs. by Act 31 of 2021, s. 2, for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022).

59 · Foreign limited liability partnerships . — The Central Government may make rules for provisions in relation to establishment of place of business by foreign limited liability partnerships within India and carrying on their business therein by applying or incorporating, with such modifications, as appear appropriate, the provisions of 1 [the Companies Act, 2013 (18 of 2013)] or such regulatory mechanism with such composition as may be prescribed.

60 · Compromise, or arrangement of limited liability partnerships . — (1) Where a compromise or arrangement is proposed—

2 · [(4) If default is made in complying with the provisions of sub-section (3), the limited liability partnership and its every designated partner shall be liable to a penalty of ten thousand rupees, and in case of continuing default, with a further penalty of one hundred rupees for each day after the first during which such default continues, subject to a maximum of one lakh rupees for limited liability partnership and fifty thousand rupees for every designated partner.]

1 · Subs. by Act 31 of 2021, s. 2 , for "the Companies Act, 1956 (1 of 1956)" (w.e.f. 1-4-2022).

2 · . Subs. by Act 31 of 2021, s. 17 , for sub -section (4) (w.e.f. 1-4-2022).

61 · Power of Tribunal to enforce compromise or arrangement . — (1) Where the Tribunal makes an order under section 60 sanctioning a compromise or an arrangement in respect of a limited liability partnership, it—

62 · Provisions for facilitating reconstruction or amalgamation of limited liability partnerships . — (1) Where an application is made to the Tribunal under section 60 for sanctioning of a compromise or arrangement proposed between a limited liability partnership and any such persons as are mentioned in that section, and it is shown to the Tribunal that—

1 · [(4) If default is made in complying with the provisions of sub-section (3), the limited liability partnership and its every designated partner shall be liable to a penalty of ten thousand rupees, and in case of the continuing default, with a further penalty of one hundred rupees for each day, after the first during which such default continues, subject to a maximum of one lakh rupees for limited liability partnership and fifty thousand rupees for every designated partner.

63 · Winding up and dissolution . — The winding up of a limited liability partnership may be either voluntary or by the Tribunal and limited liability partnership, so wound up may be dissolved.

64 · Circumstances in which limited liability partnership may be wound up by Tribunal.—A limited liability partnership may be wound up by the Tribunal,—

65 · Rules for winding up and dissolution . — The Central Government may make rules for the provisions in relation to winding up and dissolution of limited liability partnerships.

66 · Business transactions of partner with limited liability partnership . —A —A partner may lend money to and transact other business with the limited liability partnership and has the same rights and obligations with respect to the loan or other transactions as a person who is not a partner.

1 · Subs. by Act 31 of 2021, s. 18, for sub-section (4) (w.e.f. 1-4-2022).

2 · Clause (c) Omitted by Act 31 of 2016 , s. 254 and the tenth Schedule (w.e.f. 15-11-2016) .

67 · Application of the provisions of the Companies Act . — (1) The Central Government may, by notification* in the Official Gazette, direct that any of the provisions of 1 [the Companies Act, 2013 (18 of 2013)] specified in the notification—

2 · [67A. Establishment of Special Courts . — (1) The Central Government may, for the purpose of providing speedy trial of offences under this Act, by notification, establish or designate as many Special Courts as may be necessary for such area or areas, as may be specified in the notification.

67B · Procedure and powers of Special Court . — (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), all offences specified under sub-section (1) of section 67A shall be triable only by the Special Court established or designated for the area in which the registered office of the limited liability partnership is situated in relation to which the offence is committed or where there are more than one Special Courts for such area, by such one of them as may be specified in this behalf by the High Court concerned.

1 · Subs. by Act 31 of 2021, s. 2, for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022).

2 · . Ins. by s. 19, ibid ., (w.e.f. 1-4-2022).

67C · Appeal and revision.— The High Court may exercise, so far as may be applicable, all the powers conferred by Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 (2 of 1974) on a High Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Court of Sessions trying cases within the local limits of the jurisdiction of the High Court.]

68 · Electronic filing of documents . — (1) Any document required to be filed, recorded or registered under this Act may be filed, recorded or registered in such manner and subject to such conditions as may be prescribed.

1 · [68A. Registration offices.—(1) For the purpose of exercising such powers and discharging such functions as are conferred on the Central Government by or under this Act or under rules made thereunder and for the purpose of registration of limited liability partnerships under this Act, the Central Government shall, by notification, establish such number of registration offices at such places as it thinks fit, specifying their jurisdiction.

2 · [69. Payment of additional fee . —A —Any document or return required to be registered or filed under this Act with Registrar, if, is not registered or filed in time provided therein, may be registered or filed after that time, on payment of such additional fee as may be prescribed in addition to any fee as is payable for filing of such document or return:

1 · Ins. by Act 31 of 2021, s. 20 (w.e.f. 1 -4 -2022).

2 · Subs. by s. 21, ibid., for section 69 (w.e.f. 1-4-2022).

70 · Enhanced punishment . — In case a limited liability partnership or any partner or designated partner of such limited liability partnership commits any offence, the limited liability partnership or any partner or designated partner shall, for the second or subsequent offence, be punishable with imprisonment as provided, but in case of offences for which fine is prescribed either along with or exclusive of imprisonment, with fine which shall be twice the amount of fine for such offence.

71 · Application of other laws not barred . — The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.

72 · Jurisdiction of Tribunal and Appellate Tribunal . — (1) The Tribunal shall exercise such powers and perform such functions as are, or may be, conferred on it by or under this Act or any other law for the time being in force.

1 · [(2) Any person aggrieved by an order of Tribunal may prefer an appeal to the Appellate Tribunal:

73 · . [Penalty on non-compliance of any order passed by Tribunal . ] Omitted by the Limited Liability Partnership (Amendment) Act, 2021 (31 of 2021), s. 23 (w.e.f. 1 -4 -2022) .

2 · [74. General penalties . — If a limited liability partnership or any partner or any designated partner or any other person contravenes any of the provisions of this Act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act, the limited liability partnership or any partner or any designated partner or any other person, who is in the default, shall be liable to a penalty of five thousand rupees and in case of a continuing contravention with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of one lakh rupees.]

75 · Power of Registrar to strike defunct limited liability partnership off register . — Where the Registrar has reasonable cause to believe that a limited liability partnership is not carrying on business or its operation, in accordance with the provisions of this Act, the name of limited liability partnership may be struck off the register of limited liability partnerships in such manner as may be prescribed:

76 · Offences to limited liability partnerships . — Where an offence under this Act committed by a limited liability partnership is proved—

1 · Subs. by Act 31 of 2021, s. 22, for sub-section (2) (w.e.f. 1-4-2022).

2 · Subs. by s. 24, ibid., for section 74 (w.e.f. 1-4-2022).

1 · [76A. Adjudication of penalties.— (1) For the purposes of adjudging penalties under this Act, the Central Government may, by an order published in the Official Gazette, appoint as many officers of the Central Government, not below the rank of Registrar, as adjudicating officers in such manner as may be prescribed.

1 · Ins by Act 31 of 2021, s. 25 (w.e.f. 1-4-2022).

1 · [77. Jurisdiction of Court . — Subject to the provisions contained in section 67A and section 67B, on and from the date of establishment or designation of Special Courts under this Act,--

77A · Cognizance of offences.— No court, other than the Special Courts referred to in section 67A, shall take cognizance of any offence punishable under this Act or the rules made thereunder save on a complaint in writing made by the Registrar or by any officer not below the rank of Registrar duly authorised by the Central Government for this purpose.]

78 · Power to alter Schedules . — (1) The Central Government may, by notification in the Official Gazette, alter any of the provisions contained in any of the Schedules to this Act.

79 · Power to make rules . — (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.

2 · [(a) the contribution of such higher amount under sub-clauses (i) and (ii) of clause (ta) of section 2;

2 · Subs. by s. 27, ibid ., for clause (a) (w.e.f. 1-4-2022).

1 · [(ka) the manner of allotting a new name to the limited liability partnership under sub-section (3) of section 17;]

1 · [(ta) the standards of accounting and auditing under section 34A;]

1 · Ins. by Act 31 of 2021, s. 27 (w.e.f. 1-4-2022)

1 · [(zfa) the powers and duties to be discharged by the Registrars and the terms and conditions of their service under sub -section (3) of section 68A;

1 · [(zga) the manner of appointing adjudicating officers for adjudging penalty under sub-section (1) of section 76A;

1 · [(zn) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made by rules.]

1 · Ins. by Act 31 of 2021, s. 27. (w.e.f. 1-4-2022)

2 · The word “and” omitted by s. 27, ibid., (w.e.f 1-4-2022).

80 · Power to remove difficulties . — (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as may appear to it to be necessary for removing the difficulty:

1 · [(1A) Notwithstanding anything contained in sub-section (1), if any difficulty arises in giving effect to the provisions of this Act as amended by the Limited Liability Partnership (Amendment) Act, 2021, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty:

81 · [Transitional provisions.] Omitted by the Limited Liability Partnership (Amendment) Act, 2021 (31 of 2021), s. 29 (w.e.f. 1-4-2022)] .

1 · Ins. by Act 31 of 2021, s. 28(w.e.f. 1-4-2022) .

1 · The mutual rights and duties of the partners and the mutual rights and duties of the limited liability partnership and its partners shall be determined, subject to the terms of any limited liability partnership agreement or in the absence of any such agreement on any matter, by the provisions in this Schedule.

2 · All the partners of a limited liability partnership are entitled to share equally in the capital, profits and losses of the limited liability partnership.

3 · The limited liability partnership shall indemnify each partner in respect of payments made and personal liabilities incurred by him—

4 · Every partner shall indemnify the limited liability partnership for any loss caused to it by his fraud in the conduct of the business of the limited liability partnership.

5 · Every partner may take part in the management of the limited liability partnership.

6 · No partner shall be entitled to remuneration for acting in the business or management of the limited liability partnership.

7 · No person may be introduced as a partner without the consent of all the existing partners.

8 · Any matter or issue relating to the limited liability partnership shall be decided by a resolution passed by a majority in number of the partners, and for this purpose, each partner shall have one vote. However, no change may be made in the nature of business of the limited liability partnership without the consent of all the partners.

9 · Every limited liability partnership shall ensure that decisions taken by it are recorded in the minutes within thirty days of taking such decisions and are kept and maintained at the registered office of the limited liability partnership.

10 · Each partner shall render true accounts and full information of all things affecting the limited liability partnership to any partner or his legal representatives.

11 · If a partner, without the consent of the limited liability partnership, carries on any business of the same nature as and competing with the limited liability partnership, he must account for and pay over to the limited liability partnership all profits made by him in that business.

12 · Every partner shall account to the limited liability partnership for any benefit derived by him without the consent of the limited liability partnership from any transaction concerning the limited liability partnership, or from any use by him of the property, name or any business connection of the limited liability partnership.

13 · No majority of the partners can expel any partner unless a power to do so has been conferred by express agreement between the partners.

14 · All disputes between the partners arising out of the limited liability partnership agreement which cannot be resolved in terms of such agreement shall be referred for arbitration as per the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996).

1 · Interpretation . — In this Schedule, unless the context otherwise requires,—

2 · Conversion from firm into limited liability partnership . — (1) A firm may convert into a limited liability partnership by complying with the requirements as to the conversion set out in this Schedule.

3 · Eligibility for conversion . —A —A firm may apply to convert into a limited liability partnership in accordance with this Schedule if and only if the partners of the limited liability partnership into which the firm is to be converted, comprise, all the partners of the firm and no one else.

4 · Statements to be filed . —A —A firm may apply to convert into a limited liability partnership by filing with the Registrar—

5 · Registration of conversion . — On receiving the documents referred to in paragraph 4, the Registrar shall subject to the provisions of this Act, register the documents and issue a certificate of registration in such form as the Registrar may determine stating that the limited liability partnership is, on and from the date specified in the certificate, registered under this Act:

6 · Registrar may refuse to register . — (1) Nothing in this Schedule shall be construed as to require the Registrar to register any limited liability partnership if he is not satisfied with the particulars or other information furnished under the provisions of this Act:

7 · Effect of registration . — On and from the date of registration specified in the certificate of registration issued under paragraph 5,—

8 · Registration in relation to property . — If any property to which sub-paragraph (b) of paragraph 7 applies is registered with any authority, the limited liability partnership shall, as soon as practicable after the date of registration, take all necessary steps as required by the relevant authority to notify the authority of the conversion and of the particulars of the limited liability partnership in such medium and form as the authority may specify.

9 · Pending proceedings . —A —All proceedings by or against the firm which are pending in any Court or Tribunal or before any authority on the date of registration may be continued, completed and enforced by or against the limited liability partnership.

10 · Continuance of conviction, ruling, order or judgment . —A —Any conviction, ruling, order or judgment of any Court, Tribunal or other authority in favour of or against the firm may be enforced by or against the limited liability partnership.

11 · Existing agreements . — Every agreement to which the firm was a party immediately before the date of registration, whether or not of such nature that the rights and liabilities thereunder could be assigned, shall have effect as from that date as if—

12 · Existing contracts, etc . —A —All deeds, contracts, schemes, bonds, agreements, applications, instruments and arrangements subsisting immediately before the date of registration relating to the firm or to which the firm is a party, shall continue in force on and after that date as if they relate to the limited liability partnership and shall be enforceable by or against the limited liability partnership as if the limited liability partnership were named therein or were a party thereto instead of the firm.

13 · Continuance of employment . — Every contract of employment to which paragraph 11 or paragraph 12 applies shall continue to be in force on or after the date of registration as if the limited liability partnership were the employer thereunder instead of the firm.

14 · Existing appointment, authority or power . — (1) Every appointment of the firm in any role or capacity which is in force immediately before the date of registration shall take effect and operate from that date as if the limited liability partnership were appointed.

15 · Application of paragraphs 7 to 14 . — The provisions of paragraphs 7 to 14 (both inclusive) shall apply to any approval, permit or licence issued to the firm under any other Act which is in force immediately before the date of registration of the limited liability partnership, subject to the provisions of such other Act under which such approval, permit or licence has been issued.

16 · Partner liable for liabilities and obligations of firm before conversion . — (1) Notwithstanding anything in paragraphs 7 to 14 (both inclusive), every partner of a firm that has converted into a limited liability partnership shall continue to be personally liable (jointly and severally with the limited liability partnership) for the liabilities and obligations of the firm which were incurred prior to the conversion or which arose from any contract entered into prior to the conversion.

17 · Notice of conversion in correspondence . — (1) The limited liability partnership shall ensure that for a period of twelve months commencing not later than fourteen days after the date of registration, every official correspondence of the limited liability partnership bears the following:

1 · Interpretation . — In this Schedule, unless the context otherwise requires,—

2 · Eligibility for conversion of private companies into limited liability partnership . — (1) A company may convert into a limited liability partnership by complying with the requirements as to the conversion set out in this Schedule.

3 · Statements to be filed . —A —A company may apply to convert into a limited liability partnership by filing with the Registrar—

4 · . Registration of conversion . — On receiving the documents referred to in paragraph 3, the Registrar shall, subject to the provisions of this Act and the rules made thereunder, register the documents and issue a certificate of registration in such form as the Registrar may determine stating that the limited liability partnership is, on and from the date specified in the certificate, registered under this Act:

5 · Registrar may refuse to register . — (1) Nothing in this Schedule shall be construed as to require the Registrar to register any limited liability partnership if he is not satisfied with the particulars or other information furnished under the provisions of this Act:

1 · Subs. by Act 31 of 2021, s. 2 for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022).

6 · Effect of registration . — On and from the date of registration specified in the certificate of registration issued under paragraph 4—

7 · Registration in relation to property . — If any property to which clause (b) of paragraph 6 applies is registered with any authority, the limited liability partnership shall, as soon as practicable, after the date of registration, take all necessary steps as required by the relevant authority to notify the authority of the conversion and of the particulars of the limited liability partnership in such form and manner as the authority may determine.

8 · Pending proceedings . —A —All proceedings by or against the company which are pending before any Court, Tribunal or other authority on the date of registration may be continued, completed and enforced by or against the limited liability partnership.

9 · Continuance of conviction, ruling, order or judgment . —A —Any conviction, ruling, order or judgment of any Court, Tribunal or other authority in favour of or against the company may be enforced by or against the limited liability partnership.

11 · Existing contracts, etc . —A —All deeds, contracts, schemes, bonds, agreements, applications, instruments and arrangements subsisting immediately before the date of registration relating to the company or to which the company is a party shall continue in force on and after that date as if they relate to the limited liability partnership and shall be enforceable by or against the limited liability partnership as if the limited liability partnership were named therein or were a party thereto instead of the company.

12 · Continuance of employment . — Every contract of employment to which paragraph 10 or paragraph 11 applies shall continue in force on or after the date of registration as if the limited liability partnership were the employer thereunder instead of the company.

13 · Existing appointment, authority or power . — (1) Every appointment of the company in any role or capacity which is in force immediately before the date of registration shall take effect and operate from that date as if the limited liability partnership were appointed.

14 · Application of paragraphs 6 to 13 . — The provisions of paragraphs 6 to 13 (both inclusive) shall apply to any approval, permit or licence issued to the company under any other Act which is in force immediately before the date of registration of the limited liability partnership, subject to the provisions of such other Act under which such approval, permit or licence has been issued.

15 · Notice of conversion in correspondence . — (1) The limited liability partnership shall ensure that for a period of twelve months commencing not later than fourteen days after the date of registration, every official correspondence of the limited liability partnership bears the following, namely:—

1 · Interpretation . — (1) In this Schedule, unless the context otherwise requires,—

2 · Conversion of company into a limited liability partnership . — (1) A company may convert into a limited liability partnership by complying with the requirements as to the conversion set out in this Schedule.

3 · Eligibility for conversion . —A —A company may apply to convert into a limited liability partnership in accordance with the provisions of this Schedule if and only if—

4 · Statements to be filed . —A —A company may apply to convert into a limited liability partnership by filing with the Registrar—

5 · Registration of conversion . — On receiving the documents referred to in paragraph 4, the Registrar shall, subject to the provisions of this Act, and the rules made thereunder, register the documents and issue a certificate of registration in such form as the Registrar may determine stating that the limited liability partnership is, on and from the date specified in the certificate, registered under this Act:

6 · Registrar may refuse to register . — (1) Nothing in this Schedule shall be construed as to require the Registrar to register any limited liability partnership if he is not satisfied with the particulars or other information furnished under the provisions of this Act:

1 · Subs. by Act 31 of 2021, s. 2 for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022).

7 · Effect of registration . — On and from the date of registration specified in the certificate of registration issued under paragraph 5—

8 · Registration in relation to property . — If any property to which clause (b) of paragraph 7 applies is registered with any authority, the limited liability partnership shall, as soon as practicable, after the date of registration, take all necessary steps as required by the relevant authority to notify the authority of the conversion and of the particulars of the limited liability partnership in such form and manner as the authority may determine.

9 · Pending proceedings . —A —All proceedings by or against the company which are pending in any Court or Tribunal or before an authority on the date of registration may be continued, completed and enforced by or against the limited liability partnership.

10 · Continuance of conviction, ruling, order or judgment . —A —Any conviction, ruling, order or judgment of any Court, Tribunal or other authority in favour of or against the company may be enforced by or against the limited liability partnership.

11 · Existing agreements . — Every agreement to which the company was a party immediately before the date of registration, whether or not of such nature that the rights and liabilities thereunder could be assigned, shall have effect as from that date as if—

12 · Existing contracts, etc . —A —All deeds, contracts, schemes, bonds, agreements, applications, instruments and arrangements subsisting immediately before the date of registration relating to the company or to which the company is a party shall continue in force on and after that date as if they relate to the limited liability partnership and shall be enforceable by or against the limited liability partnership as if the limited liability partnership were named therein or were a party thereto instead of the company.

13 · Continuance of employment . — Every contract of employment to which paragraph 11 or paragraph 12 applies shall continue in force on or after the date of registration as if the limited liability partnership were the employer thereunder instead of the company.

14 · Existing appointment, authority or power . — (1) Every appointment of the company in any role or capacity which is in force immediately before the date of registration shall take effect and operate from that date as if the limited liability partnership were appointed.

15 · Application of paragraphs 7 to 14 . — The provisions of paragraphs 7 to 14 (both inclusive) shall apply to any approval, permit or licence issued to the company under any other Act which is in force

16 · Notice of conversion in correspondence . — (1) The limited liability partnership shall ensure that for a period of twelve months commencing not later than fourteen days after the date of registration, every official correspondence of the limited liability partnership bears the following, namely:—

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No.9/2/2010 Coord (RTI) Government of India Ministry of Corporate Affairs

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