9911796707
TMI BlogCOMPROMISE, ARRANGEMENT OR RECONSTRUCTION OF LIMITED LIABILITY PARTNERSHIPS.X X X X Extracts X X X X X X X X Extracts X X X X ..... of the affidavit shall be served on the limited liability partnership, or, where the limited liability partnership is being wound-up, on its liquidator, not less than 14 days before the date fixed for the hearing of the summons. The summons shall be in Form 21. (3)(a) Upon the hearing of the summons or any adjourned hearing thereof, the Tribunal shall, by order, unless it thinks fit for any reason to dismiss the summons, give such directions as it may think necessary in respect of the following matters: (i) determining the creditors and/or of partners whose meeting or meetings have to be held for considering the proposed compromise or arrangement; (ii) fixing the time and place of such meeting or meetings; (iii) appointing a chairman for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice of the meeting to be given to the creditors and/or partners, shall be in accordance with the rule laid down in this behalf, and shall be sent to them individually by the chairman appointed for the meeting, or, if the Tribunal so directs, by the limited liability partnership (or its Liquidator), or any other person as the Tribunal may direct, by post under certificate of posting to their last known address not less than 21 clear days before the date fixed for the meeting. It shall be accompanied by a copy of the proposed compromise or arrangement along with statement showing material interest of the designated partners, if any, and a form of proxy. (6) The notice of the meeting shall be advertised, if so decided by the Tribunal, in suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited liability partnership, or its Liquidator, as the case may be, shall, within seven days of the filing of the report by the chairman, present a petition to the Tribunal for confirmation of the compromise or arrangement: Provided that where a compromise or arrangement is proposed for the purposes of, or in connection with, a scheme for the reconstruction of any limited liability partnership or the amalgamation of any two or more limited liability partnerships, the petitioner shall pray for appropriate orders and directions under section 62. (ii) Where the limited liability partnership fails to present the petition under clause (i) for confirmation of the compromise or arrangement as aforesaid, it shall be open to any creditor or partner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the winding up petition; or (c) where the liquidator has filed his report before the Tribunal, in terms of directions given by the Tribunal on the report of the Liquidator. (ii) Without prejudice to clause (i), the LLP or any creditor or partner of the LLP, or in the case of a LLP which is being wound up, the Liquidator, may make an application for sanction of the arrangement for revival and rehabilitation before the Tribunal. (13) (i) An application under sub-rule (12) shall be accompanied by- (a) a statement of account and solvency of LLP for the immediately preceding financial year, in case the application under sub-rule (12) is made by the LLP; (b) particulars and documents relevant to the scheme including commitments whether financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 60 days of order made under clause (b) of sub-rule 14. (15) (i) On consideration of the report of the LLP Administrator under clause (c) of sub-rule (14), and other materials available, if the Tribunal is satisfied that the creditors representing three-fourths in value of the amount outstanding against that LLP have, with or without modification of the scheme, resolved that it is not possible to revive and rehabilitate the LLP, the Tribunal may, within 60 days of the receipt of such report, order - (a) that the proceedings for the winding up of the LLP be initiated; or (b) the LLP be wound up, or the liquidator to continue; or (c) sanction the arrangement for revival and rehabilitation of LLP as approved by such creditors with such modifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the actions relating to implementation of the revival and rehabilitation arrangement and submit his final report before the Tribunal within such time directed by the Tribunal but not exceeding 180 days of the order under clause (i) of sub-rule (15); (17) (i) The LLP administrator shall be appointed from a panel maintained by the Central Government for winding up and dissolution of LLPs. (ii) The terms and conditions of the appointment including fee of LLP Administrator shall be such as may be ordered by the Tribunal. (iii) The Tribunal may, on a reasonable cause being shown and for reasons to be recorded in writing, remove the LLP Administrator and may appoint another LLP Administrator. (iv) In case of removal, death or incapacity of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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