Login with GoogleOR Username Password Remember Me Forgot Password In case you’ve already logged in, click here to […]
NCLT held that:
(i) On a reading of LLP Rule 26(4) it is seen that such a petition by partner or LLP shall be admitted only upon the production of statement of affairs and 3/4th resolution of partners.
(ii) Only upon the admission stage of main petition, the requisite resolution and statement of affairs needs to be produced. It is also seen that Rule 28 empowers Tribunal to direct the LLP to produce the statement of affairs for consideration of admission of LLP to winding up.
(iii) In effect the Act provides that even though partner can present an application for winding up, it is the LLP through its special majority decides whether LLP be wound up.
(iv) On a reading of Rule 33, it is seen that sub rule (a) and (e), empowers this Tribunal to entertain any suit or proceeding by or against the LLP including any questions on fact or law which may relate to winding up. Hence it is clear that the Tribunal is with jurisdiction to entertain the Petition.
(v) The statutory scheme in winding up process under these provisions provides the LLP to get a chance to defend the proceeding against winding up. If the 3/4th resolution of partners is not made, and statement of affairs proves a favourable position of business, the winding up petition will essentially fail. Hence at this early stage, it is felt that the petition needs detailed hearing for deciding whether it is a fit case for admission to winding up.
