60. Compromise, or arrangement of limited liability partnerships.—
(1) Where a compromise or
arrangement is proposed—
(a) between a limited liability partnership and its creditors; or
(b) between a limited liability partnership and its partners,
the Tribunal may, on the application of the limited liability partnership or of any creditor or partner of the
limited liability partnership, or, in the case of a limited liability partnership which is being wound up, of
the liquidator, order a meeting of the creditors or of the partners, as the case may be, to be called, held and
conducted in such manner as may be prescribed or as the Tribunal directs.
(2) If a majority representing three-fourths in value of the creditors, or partners, as the case may be, at
the meeting, agree to any compromise or arrangement, the compromise or arrangement shall, if
sanctioned by the Tribunal, by order be binding on all the creditors or all the partners, as the case may be,
and also on the limited liability partnership, or in the case of a limited liability partnership which is being
wound up, on the liquidator and contributories of the limited liability partnership:
Provided that no order sanctioning any compromise or arrangement shall be made by the Tribunal
unless the Tribunal is satisfied that the limited liability partnership or any other person by whom an
application has been made under sub-section
(1) has disclosed to the Tribunal, by affidavit or otherwise,
all material facts relating to the limited liability partnership, including the latest financial position of the
limited liability partnership and the pendency of any investigation proceedings in relation to the limited
liability partnership.
(3) An order made by the Tribunal under sub-section
(2) shall be filed by the limited liability
partnership with the Registrar within thirty days after making such an order and shall have effect only
after it is so filed.
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).
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(5) The Tribunal may, at any time after an application has been made to it under this section, stay the
commencement or continuation of any suit or proceeding against the limited liability partnership on such
terms as the Tribunal thinks fit, until the application is finally disposed of.
