Rule 7 - Declaration of solvency in case of proposal to wind up voluntarily - Limited Liability Partnership (Winding up and Dissolution) Rules, 2012

7. Declaration of solvency in case of proposal to wind up voluntarily. (1) Where it is proposed to wind up an LLP voluntarily, the majority of its designated partners (being not less than two) shall make a declaration in Form No. 2 verified by an affidavit to the effect that the LLP has no debt or that it will be able to pay its debts in full within such period, as may be specified in the declaration, but not exceeding one year from the commencement of the winding up. (2) A declaration made under sub-rule (1) shall have no effect for the purposes of the Act and these rules, unless - ( a ) it is delivered to the Registrar for registration in Form No. 3 within fifteen days immediately preceding the date of the passing of the resolution for winding up of LLP; ( b ) it contains a statement declaring that the LLP is not being wound up to defraud any person or persons; ( c ) it is accompanied by a statement of assets and liabilities prepared in Form No. 4 for the period commencing from the date up to which the last account was prepared and ending with the latest practicable date immediately before the making of the declaration duly attested by at least two designated partners; and ( d ) it is accompanied by a report of the valuation of the assets of the LLP prepared by a valuer, if there are any assets of the LLP. (3) The LLP or its designated partners may repay any dues of the creditors or satisfy the claims of creditors in any manner, before any declaration is made by designated partners under sub-rule (1).