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—
(a) the Tribunal, either suo motu, or on an application received from not less than one-fifth of the
total number of partners of limited liability partnership, by order, declares that the affairs of the
limited liability partnership ought to be investigated; or
(b) any Court, by order, declares that the affairs of a limited liability partnership ought to be
investigated.
(2) The Central Government may appoint one or more competent persons as inspectors to investigate
the affairs of a limited liability partnership and to report on them in such manner as it may direct.
(3) The appointment of inspectors pursuant to sub-section
(2) may be made,—
(a) if not less than one-fifth of the total number of partners of the limited liability partnership
make an application along with supporting evidence and security amount as may be prescribed; or
(b) if the limited liability partnership makes an application that the affairs of the limited liability
partnership ought to be investigated; or
(c) if, in the opinion of the Central Government, there are circumstances suggesting—
(i) that the business of the limited liability partnership is being or has been conducted with an
intent to defraud its creditors, partners or any other person, or otherwise for a fraudulent or
unlawful purpose, or in a manner oppressive or unfairly prejudicial to some or any of its partners,
or that the limited liability partnership was formed for any fraudulent or unlawful purpose; or
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(ii) that the affairs of the limited liability partnership are not being conducted in accordance
with the provisions of this Act; or
(iii) that, on receipt of a report of the Registrar or any other investigating or regulatory
agency, there are sufficient reasons that the affairs of the limited liability partnership ought to be
investigated.
