[bill no xxxi of 2021] the limited liability partnership (amendment) bill, 2021 a billto amend the limited liability partnership act, 2008be it enacted by parliament in the seventy-second year of the republic of india as follows:—1 (1) this act may be called the limited liability partnership (amendment) act, 2021short title and commencement5(2) it shall come into force on such date as the central government may, by notificationin the official gazette, appoint and different dates may be appointed for different provisions of this act and any reference in any such provision to the commencement of this act shall be construed as a reference to the coming into force of that provision6 of 2009 1 of 195618 of 20132 throughout the limited liability partnership act, 2008 (hereinafter referred to as the principal act), for the words and figures "the companies act, 1956" wherever they occur, the words and figures "the companies act, 2013" shall be substituted10substitution of reference of certain expressions by certain other expressions3 in section 2 of the principal act, in sub-section (1),—amendment of section 2(a) in clause (c), for the words, brackets, figures and letters  "sub-section (1) of section 10fr",  the word and figures "section 410" shall be substituted;(b) in clause (d), for the word and figure "section 3", occurring at both the places, the words, brackets and figures "clause (20) of section 2" shall be substituted;5(c) in clause (e), for the words "and occupation", the words "and occupation except any activity which the central government may, by notification, exclude" shall be substituted;(d) after clause (i), the following clause shall be inserted, namely:—10'(ia) "debenture" means a non-convertible debenture issued by a limited liability partnership evidencing a debt and constituting a charge on the assets of such limited liability partnership;'; (e)  after clause (r) , the following clause shall be inserted, namely:—1518 of 2013'(ra) "regional director" means a person appointed as such by the central government for the purposes of this act or the companies act, 2013, as the case may be;'; (f) for  clause (s), the following clause shall be substituted, namely:—2018 of 2013'(s) "registrar" means a person appointed by the central government as registrar, an additional registrar, a joint registrar, a deputy registrar or an assistant registrar, for the purposes of this act or the companies act, 2013, as the case may be;';(g) after clause (t), the following clause shall be inserted, namely:—'(ta) "small limited liability partnership" means a limited liability partnership—25(i) the contribution of which, does not exceed twenty-five lakh rupees or such higher amount, not exceeding five crore rupees, as may be prescribed; and30(ii) the turnover of which, as per the statement of accounts and solvency for the immediately preceding financial year, does not exceed forty lakh rupees or such higher amount, not exceeding fifty crore rupees, as may be prescribed; or(iii) which meets such other requirements as may be prescribed, and fulfils such terms and conditions as may be prescribed;';(h) in clause (u), for the words, figures and letters "sub-section (1) of section10fb", the word and figures "section 408" shall be substituted354 in section 7 of the principal act,—amendment of section 7(a) in sub-section (1), in the explanation, for the words "eighty-two days during the immediately preceding one year", the words "twenty days during the financial year" shall be substituted40(b) in sub-section (6), for the words, figures and letters "sections 266a to266g", the words and figures "sections 153 to 159" shall be substituted 5  in section 10 of the principal act,—amendment of section 10(a) in the marginal heading, the figure "8" shall be omitted;(b) in sub-section (1), for the words "punishable with fine which shall not be less than ten thousand rupees, but which may extend to five lakh rupees", the following shall be substituted, namely:—5"liable to a penalty of ten thousand rupees and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a  maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for every partner of such limited liability partnership"; (c) for sub-section (2), the following sub-sections shall be substituted, namely:—1015 "(2) if the limited liability partnership contravenes the provision of sub-section (4) of section 7, such limited liability partnership and its every designated partner shall be liable to a penalty of five thousand rupees and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of fifty thousand rupees for the limited liability partnership and twenty-five thousand rupees for its every designated partner20(3) if the limited liability partnership contravenes the provisions of sub-section (5) of section 7 or section 9, such limited liability partnership and its every partner shall be liable to a penalty of ten thousand rupees, and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for its every partner"amendment of section 13256 in section 13 of the principal act, for sub-section (4), the following sub-section shall be substituted, namely:— "(4) if any default is made in complying with the requirements of this section, the limited liability partnership and its every partner shall be liable to a penalty of five hundred rupees for each day during which the default continues, subject to a maximum of fifty thousand rupees for the limited liability partnership and its every partner"30amendment of section 157 in section 15 of the principal act, in sub-section (2), for clause (b), the following shall be substituted, namely:—47 of 1999"(b) identical or too nearly resembles to that of any other limited liability partnership or a company or a registered trade mark of any other person under the trade marks act, 1999" 8 for section 17 of the principal act,  the following  section shall be substituted, namely:—35substituion of new section for sectgion 17"17 (1) notwithstanding anything contained in sections 15 and 16, if through inadvertence or otherwise, a limited liability partnership, on its first registration or on its registration by  a new name, is registered by a name which is identical with or too nearly resembles to—rectification of name of limited liability partnership40(a) that of any other limited liability partnership or a company; or47 of 1999(b) a registered trade mark of such proprietor under the trade marksact, 1999,45as is likely to be mistaken for it, then on an application of such limited liability partnership or proprietor referred to in clauses (a) and (b) respectively or a company, the central government may direct that such limited liability partnership to change its name or new name within a period of three months from the date of issue of such direction:provided that an application of the proprietor of the registered trade marks shall be maintainable within a period of three years from the date of incorporation or registration or change of name of the limited liability partnership under this act5(2) where a limited liability partnership changes its name or obtains a new name under sub-section (1), it shall within a period of fifteen days from the date of such change, give notice of the change to registrar along with the order of the central government, who shall carry out necessary changes in the certificate of incorporation and within thirty days of such change in the certificate of incorporation, such limited liability partnership shall change its name in the limited liability partnership agreement1015(3) if the limited liability partnership is in default in complying with any direction given under sub-section (1), the central government shall allot a new name to the limited liability partnership in such manner as may be prescribed and the registrar shall enter the new name in the register of limited liability partnerships in place of the old name and issue a fresh certificate of incorporation with new name, which the limited liability partnership shall use thereafter:provided that nothing contained in this sub-section shall prevent a limited liability partnership from subsequently changing its name in accordance with the provisions of section 16" 9 section 18 of the principal act shall be omittedomission of section 1820amendment of section 2110 in section 21 of the principal act, for sub-section (2), the following sub-section shall be substituted, namely:—"(2) if the limited liability partnership contravenes the provisions of this section, the limited liability partnership shall be liable to a penalty of ten thousand rupees"amendment of section 252511 in section 25 of the principal act, for sub-sections (4) and (5), the following sub-sections shall be substituted, namely:—"(4) if the limited liability partnership contravenes the provisions of sub-section(2), the limited liability partnership and its every designated partner shall be liable to a penalty of ten thousand rupees30(5) if the contravention referred to in sub-section (1) is made by any partner of the limited liability partnership, such partner shall be liable to a penalty of ten thousand rupees"amendment of section 3012  in section 30 of the principal act, in sub-section (2), for the words "two years", the words "five years" shall be substitutedamendment of section 343513 in section 34 of the principal act, for sub-section (5), the following sub-sections shall be substituted, namely:—"(5)  any limited liability partnership which fails to comply with the provisions of sub-section (3), such limited liability partnership and its designated partners shall be liable to a penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for every designated partner40 45(6) any limited liability partnership which fails to comply with the provisions of sub-section (1), sub-section (2) and sub-section (4), such limited liability partnership shall be punishable with fine which shall not be less than twenty-five thousand rupees, but may extend to five lakh rupees and every designated partner of such limited liability partnership shall be punishable with fine which shall not be less than ten thousand rupees, but may extend to one lakh rupees"14 after section 34 of the principal act, the following section  shall be inserted, namely:—insertion of new section 34a"34a the central government may, in consultation with the national financial reporting authority constituted under section 132 of the companies act, 2013,—18 of 2013accounting and auditing standards (a) prescribe the standards of accounting; and5(b) prescribe the standards of auditing,38 of 1949as recommended by the institute of chartered accountants of india constituted under section 3 of the chartered accountants act, 1949, for a class or classes of limited liability partnerships"10amendment of section 3515 in section 35 of the principal act, for sub-sections (2) and (3), the following sub-section shall be substituted, namely:—15"(2) if any limited liability partnership fails to file its annual return under sub-section (1) before the expiry of the period specified therein, such limited liability partnership and its designated partners shall be liable to a penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for designated partners" 16 for section 39 of the principal act, the following section  shall be substituted, namely:—substitution of new section for section 3920compounding of offences2 of 197425"39 (1) notwithstanding anything contained in the code of criminal procedure,1973, the regional director or any other officer not below the rank of regional director authorised by the central government may compound any offence under this act which is punishable with fine only, by collecting from a person reasonably suspected of having committed the offence, a sum which may extend to the amount of the maximum fine provided for the offence but shall not be lower than the minimum amount provided for the offence(2) nothing contained in sub-section (1) shall apply to an offence committed by a limited liability partnership or its partner or its designated partner within a period of three years from the date on which similar offence committed by it or him was compounded under this section30explanation—for the removal of doubts, it is hereby clarified that any second or subsequent offence committed after the expiry of the period of three years from the date on which the offence was previously compounded, shall be deemed to be the first offence35(3) every application for the compounding of an offence shall be made to the registrar who shall forward the same, together with his comments thereon, to the regional director or any other officer not below the rank of regional director authorised by the central government, as the case may be40(4) where any offence is compounded under this section, whether before orafter the institution of any prosecution, intimation thereof shall be given to the registrar within a period of seven days from the date on which the offence is so compounded(5) where any offence is compounded before the institution of any prosecution,no prosecution shall be instituted in relation to such offence45(6) where the compounding of any offence is made after the institution of anyprosecution, such compounding shall be brought by the registrar in writing, to the notice of the court in which prosecution is pending and on such notice of the compounding of the offence being given, the offender in relation to which the offence is so compounded shall be discharged5(7) the regional director or any other officer not below the rank of regional director authorised by the central government, while dealing with the proposal for compounding of an offence may, by an order, direct any partner, designated partner or other employee of the limited liability partnership to file or register, or on payment of fee or additional fee as required to be paid under this act, such return, account or other document within such time as may be specified in the order10(8) notwithstanding anything contained in this section, if any partner or designated partner or other employee of the limited liability partnership who fails to comply with any order made by the regional director or any other officer not below the rank of regional director authorised by the central government, under sub-section (7), the maximum amount of fine for the offence, which was under consideration of regional director or such authorised officer for compounding under this section shall be twice the amount provided in the corresponding section in which punishment for such offence is provided"15amendment of section 6017 in section 60 of the principal act, for sub-section (4), the following sub-section shall be substituted, namely:—20"(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"amendment of section 622518 in section 62 of the principal act, for sub-section (4) and explanation occurring after sub-section (4),  the following sub-section and explanation shall be substituted, namely:—30"(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 the 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 partnerexplanation—for the purposes of this section,—(i) "property" includes property, rights and powers of every description and "liabilities" includes duties of every description;35(ii) a "limited liability partnership" shall not be amalgamated with a company"19  after section 67 of the principal act, the following sections  shall be inserted, namely:—insertion of new sections 67a, 67b and 67c2 of 197440establishment of special courts"67a (1) the central government may, for the purpose of providing speedy trial of offences under this act, by notification, establish or designate as many special courts as may be necessary for such area or areas, as may be specified in the notification(2) the special court shall consist of—45(a) a single judge holding office as sessions judge or additional sessions judge, in case of offences punishable under this act with imprisonment of three years or more; and(b) a metropolitan magistrate or a judicial magistrate of the first class, in the case of other offences, who shall be appointed by the central government with the concurrence of the chief justice of the high court:| 18 of 2013                                                                                     |  5   ||-------------------------------------------------------------------------------------------------|------|| provided that until special courts are designated or established under                          |      || sub-section (                                                                                   | 1    || companies act, 2013 shall be deemed to be special courts for the purpose of trial of            |      || offences punishable under this act:                                                             |      || 18 of 2013                                                                                     |      || 2 of 1974                                                                                      |      || 10                                                                                              |      || provided further that notwithstanding anything contained in the code of criminal                |      || procedure, 1973, any offence committed under this act, which is triable by a special court      |      || shall, until a special court is established under this act or the companies act, 2013, be tried |      || by a court of sessions or the court of metropolitan magistrate or a judicial magistrate of      |      || the first class, as the case may be, exercising jurisdiction over the area                     |      || 2 of 1974                                                                                      |      || procedure and                                                                                   |      || powers of                                                                                       |      || special court                                                                                  |      || 15                                                                                              |      || 67b (                                                                                          | 1    || 1973, all offences specified under sub-section (                                                | 1    || by the special court established or designated for the area in which the registered             |      || office of the limited liability partnership is situated in relation to which the offence is     |      || committed or where there are more than one special courts for such area, by such one            |      || of them as may be specified in this behalf by the high court concerned                         |      || 2 of 1974                                                                                      |      || 20                                                                                              |      || (                                                                                               | 2    || offence other than an offence under this act with which the accused may, under the              |      || code of criminal procedure, 1973 be charged at the same trial                                  |      || 2 of 1974                                                                                      |      || (                                                                                               | 3    || 1973, the special court may, if it thinks fit, try in a summary way any offence under this      |      || act which is punishable with imprisonment for a term not exceeding three years:                 |      || 25                                                                                              |      || provided that in the case of any conviction in a summary trial, no sentence of                  |      || imprisonment for a term exceeding one year shall be passed:                                     |      || 30                                                                                              |      || provided further that                                                                           | ,    || trial, it appears to the special court that the nature of the case is such that the sentence    |      || of imprisonment for a term exceeding one year may have to be passed or that it is, for          |      || any other reason, undesirable to try the case summarily, the special court shall, after         |      || hearing the parties, record an order to that effect and thereafter recall any witnesses         |      || who may have been examined and proceed to hear or re-hear the case in accordance                |      || with the procedure for the regular trial                                                       |      |appeal and revision2 of 19743567c the high court may exercise, so far as may be applicable, all the powers conferred by chapters xxix and xxx of the code of criminal procedure, 1973 on a high court, as if a special court within the local limits of the jurisdiction of the high court were a court of sessions trying cases within the local limits of the jurisdiction of the high court" 20 after section 68 of the principal act, the following section shall be inserted, namely:—insertion of new section 68aregistration offices40"68a (1) for the purpose of exercising such powers and discharging such functions as are conferred on the central government by or under this act or under rules made thereunder and for the purpose of registration of limited liability partnerships under this act, the central government shall, by notification, establish such number of registration offices at such places as it thinks fit, specifying their jurisdiction45(2) the central government may appoint such registrars, additional registrars, joint registrars, deputy registrars and assistant registrars as it considers necessary, for the registration of limited liability partnerships and discharge of various functions under this act(3) the powers and duties of the registrars referred to in sub-section (2) and the terms and conditions of their service shall be such as may be prescribed(4) the central government may direct the registrar to prepare a seal or seals for the authentication of documents required for, or connected with the registration of limited liability partnerships"5 21 for section 69 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 69 payment of additional fee10 "69 any document or return required to be registered or filed under this act with registrar, if, is not registered or filed in time provided therein, may be registered or filed after that time, on payment of such  additional fee as may be prescribed in addition to any fee as is payable for filing of such document or return:provided that such document or return shall be filed after the due date of filing, without prejudice to any other action or liability under this act:15provided further that a different fee or additional fee may be prescribed for different classes of limited liability partnerships or for different documents or returns required to be filed under this act or rules made thereunder"amendment of section 7222 in section 72 of the principal act, for sub-section (2), the following sub-sections shall be substituted, namely:—20"(2) any person aggrieved by an order of tribunal may prefer an appeal to the appellate tribunal:provided that no appeal shall lie to the appellate tribunal from an order made by the tribunal with the consent of parties25(3) every appeal preferred under sub-section (2) shall be filed within a period of sixty days from the date on which the copy of the order of the tribunal is made available to the person aggrieved and shall be in such form, and accompanied by such fees, as may be prescribed:30provided that the appellate tribunal may entertain an appeal after the expiry of the said period of sixty days, but within a further period of not exceeding sixty days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the period so specified(4) on the receipt of an appeal under sub-section (2), the appellate tribunal shall, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against35(5) the appellate tribunal shall send a copy of every order made by it to the tribunal and the parties to the appeal" 23 section 73 of the principal act shall be omittedomission of section 7324 for section 74 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 7440general penalties45"74 if a limited liability partnership or any partner or any designated partner or any other person contravenes any of the provisions of this act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this act, the limited liability partnership or any partner or any designated partner or any other person, who is in the default, shall be liable to a penalty of five thousand rupees and in case of a continuing contravention with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of one lakh rupees" 25 after section 76 of the principal act, the following section shall be inserted, namely:—5insertion of new section 76a adjudication of penalties"76a (1) for the purposes of adjudging penalties under this act, the central government may, by an order published in the official gazette, appoint as many officers of the central government, not below the rank of registrar, as adjudicating officers in such manner as may be prescribed10(2) the central government shall, while appointing adjudicating officers, specify their jurisdiction in the order under sub-section (1)(3) the adjudicating officer may, by an order—15(a) impose the penalty on the limited liability partnership or its partners or designated partners or any other person, as the case may be, stating therein any non-compliance or default under the relevant provisions of this act:provided that in case default relates to non-compliance of sub-section (3)of section 34 or sub-section (1) of section 35 and such default has been rectified either prior to or within thirty days of the issue of the notice by the adjudicating officer, no penalty shall be imposed in this regard and proceedings under this section in respect of such default shall be deemed to be concluded:2025provided further that notwithstanding anything contained in this act, if penalty is payable for non-compliance of any of the provisions of this act by a small limited liability partnership or a start-up limited liability partnership or by its partner or designated partner or any other person in respect of such limited liability partnership, then such limited liability partnership or its partner or designated partner or any other person, shall be liable to a penalty which shall be one-half of the penalty specified in such provisions subject to a maximum of one lakh rupees  for limited liability partnership and fifty thousand rupees for every partner or designated partner or any other person, as the case may be30explanation—for the purposes of this proviso, the expression "start-up limited liability partnership" means a limited liability partnership incorporated under this act and recognised as such in accordance with the notifications issued by the central government from time to time35(b) direct such limited liability partnership or  its partner or designated partner or any other person, as the case may be, to rectify the default, wherever he considers fit for reasons to be recorded in writing (4) the adjudicating officer shall, before imposing any penalty, give an opportunity of being heard to such limited liability partnership or its partner or designated partner or any other person, who is in default40(5) any person aggrieved by an order made by the adjudicating officer under subsection (3) may prefer an appeal to the regional director having jurisdiction in the matter45(6) every appeal made under sub-section (5) shall be filed within a period of sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form, manner and accompanied by such fees as may be prescribed:provided that the regional director may, for the reasons to be recorded in writing, extend the period of filing an appeal, under this sub-section, by not more than thirty days(7) the regional director may, after giving an opportunity of being heard to the parties to the appeal, pass such order as he thinks fit, confirming, modifying or setting aside the order appealed against5(8) where a limited liability partnership fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be, within a period of ninety days from the date of receipt of the copy of the order, such limited liability partnership shall be punishable with fine which shall not be less than twenty-five thousand rupees, but may extend to five lakh rupees1015(9) where a partner or designated partner of a limited liability partnership or any other person who is in default fails to comply with an order made under sub-section (3) or sub-section (7), as the case may be, within a period of ninety days from the date of receipt of the copy of the order, such partner or designated partner or any other person shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but may extend to one lakh rupees, or with both" 26 for section 77 of the principal act, the following sections shall be substituted, namely:—substitution of new sections for section 77jurisdiction of courts"77 subject to the provisions contained in section 67a and section 67b, on and from the date of establishment or designation of special courts under this act,—20(i) the special court referred to in clause (a) of sub-section (2) of section 67a shall have jurisdiction and power to impose punishment under section 30 of the act; and25(ii) the criminal cases against the limited liability partnership or its partners or designated partners or any other person in default filed under this act and pending before the court of judicial magistrate of the first class or metropolitan magistrate, as the case may be, shall be transferred to the special court referred to in clause (b) of sub-section (2) of section 67acognizance of offences3077a no court, other than the special courts referred to in section 67a, shall take cognizance of any offence punishable under this act or the rules made thereunder save on a complaint in writing made by the registrar or by any officer not below the rank of registrar duly authorised by the central government for this purpose"27 in section 79 of the principal act, in sub-section (2),—amendment of section 79(i) for clause (a), the following clauses shall be substituted, namely:—35"(a) the contribution of such higher amount under sub-clauses (i) and (ii)of clause (ta) of section 2;(aa) the terms and conditions to be fulfilled by class or classes of limited liability partnerships under long line to clause (ta) of section 2;(ab) the form and manner of prior consent to be given by designated partner under sub-section (3) of section 7;";40(ii) after clause (k), the following clause shall be inserted, namely:—"(ka) the manner of allotting a new name to the limited liability partnership under sub-section (3) of section 17;"; (iii) after clause (p), the following clauses shall be inserted, namely:—45"(pa) the issue of debentures to such other persons subject to such terms and conditions under sub-section (1) of section 33a;(pb) the form and manner of keeping and maintaining a register of debenture holders under sub-section (3) of section 33a;(pc) the manner to create a debenture redemption reserve account under sub-section (4) of section 33a;(pd) the information, documents and return of allotments to be filed with the registrar under sub-section (7) of section 33a;"; (iv) after clause (t), the following clause shall be inserted, namely:—5"(ta) the standards of accounting and auditing under section 34a;";(v) after clause (zf), the following clauses shall be inserted, namely:—"(zfa) the powers and duties to be discharged by the registrars and the terms and conditions of their service under sub-section (3) of section 68a;10(zfb) the payment of additional fee for filing of document or  return and thepayment of different fee or additional fee under section 69;(zfc) the form and fee for filing of appeal under sub-section (3) of section 72;";(vi) after clause (zg), the following clauses shall be inserted, namely:—15"(zga) the manner of appointing adjudicating officers for adjudging penaltyunder sub-section (1) of section 76a;(zgb) the form, manner and fee for filing an appeal against the order made by the adjudicating officer under sub-section (6) of section 76a;";(vii) in clause (zl), the word "and" occurring at the end shall be omitted; (viii) after clause (zm), the following clause shall be inserted, namely:—20" (zn) any other matter which is to be, or may be, prescribed, or in respectof which provision is to be made by rules"amendment of section 8028  in section 80 of the principal act, after sub-section (1), the following sub-section shall be inserted, namely:—25"(1a) notwithstanding anything contained in sub-section (1), if any difficultyarises in giving effect to the provisions of this act as amended by the limited liability partnership (amendment) act, 2021, the central government may, by order published in the official gazette, make such provisions not inconsistent with the provisions of this act, as may appear to it to be necessary for removing the difficulty:30provided that no such order shall be made under this section after the expiry ofa period of three years from the date of commencement of the limited liability partnership (amendment) act, 2021"29 section 81 of the principal act shall be omittedomission of section 81 statement  of  objects  and  reasonsthe limited liability partnership act, 2008 (the act) was enacted with a view to make provisions for the formation and regulation of limited liability partnerships and for matters connected therewith or incidental thereto2 the main purpose of the act was to provide a new body corporate form that would provide an alternative to the traditional partnership form to enable professional expertise and entrepreneurial initiative to be combined, organised and operated in a flexible, innovative and efficient manner3 in view of the constant endeavour of the central government to facilitate greater ease of living to law abiding corporates and to decriminalise certain provisions of the act, it has become necessary to amend certain provisions of the act hence the bill, namely, the limited liability partnership (amendment) bill, 2021 is proposed to be enacted4 the limited liability partnership (amendment) bill, 2021, inter alia, provides for the following, namely:—(i) to introduce the concept of "small limited liability partnership" in line with the concept of "small company" under the companies act, 2013;(ii) to amend certain sections of the act so as to convert offences into civil defaults and to convert the nature of punishment provided in the said sections from fines to monetary penalties;(iii) to insert a new section 34a so as to empower the central government to prescribe the "accounting standards" or "auditing standards" for a class or classes of limited liability partnerships;(iv) to amend section 39 of the act relating to "compounding of offences" so as to authorise the regional director to compound any offence under this act which is punishable with fine only;(v) to insert a new section 67a empowering the central government to establish or designate as many "special courts" as may be necessary for the purpose of providing speedy trial of offences under the act;(vi) to amend section 72 of the act so as to provide more clarity in the provisions when any person aggrieved by an order of "tribunal" prefers an appeal to the "appellate tribunal";(vii) to insert a new section 76a so as to provide that the central government may appoint as many officers as adjudicating officers as it thinks necessary for the purpose of adjudicating penalties under the act5 the notes on clauses explains in detail the various provisions of the bill 6 the bill seeks to achieve the above objectivesnew delhi;nirmala sitharamanthe 28 july, 2021 annexure extracts from the limited liability partnership act, 2008 (6 of 2009)|             ||--------------|| definitions |2 (1) in this act, unless the context otherwise requires,—|     |     |     |     |    ||------|------|------|------|-----|1 of 1956(c) "appellate tribunal" means the national company law appellate tribunalconstituted under sub-section (1) of section 10fr of the companies act, 1956;(d) "body corporate" means a company as defined in section 3 of the companies act, 1956 and includes—1 of 1956(i) a limited liability partnership registered under this act; (ii) a limited liability partnership incorporated outside india; and (iii) a company incorporated outside india,but does not include— (i) a corporation sole;(ii) a co-operative society registered under any law for the time being inforce; and1 of 1956 (iii) any other body corporate (not being a company as defined insection 3 of the companies act, 1956 or a limited liability partnership as defined in this act), which the central government may, by notification in the official gazette, specify in this behalf;(e) "business" includes every trade, profession, service and occupation;|     |     |     |     |    ||------|------|------|------|-----|1 of 1956(s) "registrar" means a registrar, or an additional, a joint, a deputy or an assistant registrar, having the duty of registering companies under the companies act, 1956;|     |     |     |     |    ||------|------|------|------|-----|1 of 1956(u) "tribunal" means the national company law tribunal constituted undersub-section (1) of section 10fb of the companies act, 1956;|     |     |     |     |    ||------|------|------|------|-----|designated partners7 (1) every limited liability partnership shall have at least two designated partners who are individuals and at least one of them shall be a resident in india:provided that in case of a limited liability partnership in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such limited liability partnership or nominees of such bodies corporate shall act as designated partnersexplanation—for the purposes of this section, the term "resident in india" means a person who has stayed in india for a period of not less than one hundred and eighty-two days during the immediately preceding one year     (6) every designated partner of a limited liability partnership shall obtain a designated partner identification number (dpin) from the central government and the provisions of sections 266a to 266g (both inclusive) of the companies act, 1956 shall apply mutatis mutandis for the said purpose|                                                                                               |     |     |                                                                                   |    ||------------------------------------------------------------------------------------------------|------|------|------------------------------------------------------------------------------------|-----|| punishment                                                                                     |      |      |                                                                                    |     || for                                                                                            |      |      |                                                                                    |     || contravention                                                                                  |      |      |                                                                                    |     || of sections 7,                                                                                 |      |      |                                                                                    |     || 8 and 9                                                                                       |      |      |                                                                                    |     || 10                                                                                            | (    |    1 | ) if the limited liability partnership contravenes the provisions of sub-section ( |   1 || of section 7, the limited liability partnership and its every partner shall be punishable with |      |      |                                                                                    |     || fine which shall not be less than ten thousand rupees but which may extend to five lakh        |      |      |                                                                                    |     || rupees                                                                                        |      |      |                                                                                    |     |(2) if the limited liability partnership contravenes the provisions of sub-section (4) and sub-section (5) of section 7, section 8 or section 9, the limited liability partnership and its every partner shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees|    |     |    |    |     |     |     |     |    ||----|-----|----|----|------|------|------|------|-----|| 13 | (1) |   |    |      |     |     |     |    |(4) if the limited liability partnership contravenes any provisions of this section, the limited liability partnership and its every partner shall be punishable with fine which shall not be less than two thousand rupees but which may extend to twenty-five thousand rupeesregistered office of limited liability partnership and change therein    name15 (1)      (2) no limited liability partnership shall be registered by a name which, in the opinion of the central government is—|     |     |     |     |    ||------|------|------|------|-----|47 of 1999(b) identical or too nearly resembles to that of any other partnership firm or limited liability partnership or body corporate or a registered trade mark, or a trade mark which is the subject matter of an application for registration of any other person under the trade marks act, 1999|     |     |     |     |    ||------|------|------|------|-----|17 (1) notwithstanding anything contained in sections 15 and 16, where the central government is satisfied that a limited liability partnership has been registered (whether through inadvertence or otherwise and whether originally or by a change of name) under a name which—change of name of limited liability partnership (a) is a name referred to in sub-section (2) of section 15; or(b) is identical with or too nearly resembles the name of any other limited liability partnership or body corporate or other name as to be likely to be mistaken for it, the central government may direct such limited liability partnership to change its name, and the limited liability partnership shall comply with the said direction within three months after the date of the direction or such longer period as the central government may allow(2) any limited liability partnership which fails to comply with a direction given under sub-section (1) shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to five lakh rupees and the designated partner of such limited liability partnership shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees18 (1) any entity which already has a name similar to the name of a limited liability partnership which has been incorporated subsequently, may apply, in such manner as may be prescribed, to the registrar to give a direction to any limited liability partnership, on a ground referred to in section 17 to change its nameapplication for direction to change name in certain circumstances (2) the registrar shall not consider any application under sub-section (1) to give a direction to a limited liability partnership on the ground referred to in clause (b) of sub-section (1) of section 17 unless the registrar receives the application within twenty-four months from the date of registration of the limited liability partnership under that name|                |    |    |    |     |     |     |     |    ||----------------|----|----|----|------|------|------|------|-----|| 21            | (  |  1 | )  |     |     |     |     |    || publication of |    |    |    |      |      |      |      |     || name and       |    |    |    |      |      |      |      |     || limited        |    |    |    |      |      |      |      |     || liability     |    |    |    |      |      |      |      |     |(2) any limited liability partnership which contravenes the provisions of sub-section (1) shall be punishable with fine which shall not be less than two thousand rupees but which may extend to twenty-five thousand rupees|               |    |    |    |     |     |     |     |    ||---------------|----|----|----|------|------|------|------|-----|| 25           | (  |  1 | )  |     |     |     |     |    || registration  |    |    |    |      |      |      |      |     || of changes in |    |    |    |      |      |      |      |     || partners     |    |    |    |      |      |      |      |     |(4) if the limited liability partnership contravenes the provisions of sub-section (2), the limited liability partnership and every designated partner of the limited liability partnership shall be punishable with fine which shall not be less than two thousand rupees but which may extend to twenty-five thousand rupees(5) if any partner contravenes the provisions of sub-section (1), such partner shall be punishable with fine which shall not be less than two thousand rupees but which may extend to twenty-five thousand rupees|                |    |    |    |     |     |     |     |    ||----------------|----|----|----|------|------|------|------|-----|| 30            | (  |  1 | )  |     |     |     |     |    || unlimited      |    |    |    |      |      |      |      |     || liability in   |    |    |    |      |      |      |      |     || case of fraud |    |    |    |      |      |      |      |     |(2) where any business is carried on with such intent or for such purpose as mentioned in sub-section (1), every person who was knowingly a party to the carrying on of the business in the manner aforesaid shall be punishable with imprisonment for a term which may extend to two years and with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees|     |     |     |     |    ||------|------|------|------|-----| chapter vii financial disclosures| 34            ||----------------|| maintenance    || of books of    || account, other || records and    || audit, etc    |(5) any limited liability partnership which fails to comply with the provisions of this section shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every designated partner of such limited liability partnership shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupeesannual return35 (1)     (2) any limited liability partnership which fails to comply with the provisions of this section shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees(3) if the limited liability partnership contravenes the provisions of this section, the designated partner of such limited liability partnership shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees     compounding of offences39 the central government may compound any offence under this act which is punishable with fine only, by collecting from a person reasonably suspected of having committed the offence, a sum which may extend to the amount of the maximum fine prescribed for the offence|     |     |     |     |    ||------|------|------|------|-----| chapter xii compromise, arrangement or reconstruction of limited liability partnerships60 (1)     (4) if default is made in complying with sub-section (3), the limited liability partnership, and every designated partner of the limited liability partnership shall be punishable with fine which may extend to one lakh rupeescompromise, or arrangement of limited liability partnerships    62 (1)     (4) if default is made in complying with the provisions of sub-section (3), the limited liability partnership, every designated partner of the limited liability partnership shall be punishable with fine which may extend to fifty thousand rupeesprovisions for facilitating reconstruction or amalgamation of limited liability partnerships explanation—in this section "property" includes property, rights and powers of every description; and "liabilities" includes duties of every description|                                                                                                     |                                                                                  ||------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|| payment of                                                                                           |                                                                                   || additional fee                                                                                      |                                                                                   || 69                                                                                                  | any document or return required to be filed or registered under this act with the || registrar, if, is not filed or registered in time provided therein, may be filed or registered after |                                                                                   || that time up to a period of three hundred days from the date within which it should have been        |                                                                                   || filed, on payment of additional fee of one hundred rupees for every day of such delay in             |                                                                                   || addition to any fee as is payable for filing of such document or return:                             |                                                                                   |provided that such document or return may, without prejudice to any other action or liability under this act, also be filed after such period of three hundred days on payment of fee and additional fee specified in this section|                 |    |    |    |     |     |     |     |    ||-----------------|----|----|----|------|------|------|------|-----|| 72             | (  |  1 | )  |     |     |     |     |    || jurisdiction of |    |    |    |      |      |      |      |     || tribunal and    |    |    |    |      |      |      |      |     || appellate       |    |    |    |      |      |      |      |     || tribunal       |    |    |    |      |      |      |      |     |1 of 1956(2) any person aggrieved by an order or decision of tribunal may prefer an appeal to the appellate tribunal and the provisions of sections 10fq, 10fza, 10g, 10gd, 10ge and 10gf of the companies act, 1956 shall be applicable in respect of such appeal73 whoever fails to comply with any order made by the tribunal under any provision of this act shall be punishable with imprisonment which may extend to six months and shall also be liable to a fine which shall not be less than fifty thousand rupeespenalty on noncompliance of any order passed by tribunal general penalties74 any person guilty of an offence under this act for which no punishment is expresslyprovided shall be liable to a fine which may extend to five lakh rupees but which shall not be less than five thousand rupees and with a further fine which may extend to fifty rupees for every day after the first day after which the default continues     jurisdiction of court77 notwithstanding any provision to the contrary in any act for the time being inforce, the judicial magistrate of the first class or, as the case may be, the metropolitan magistrate shall have jurisdiction to try any offence under this act and shall have power to impose punishment in respect of said offence     79 (1)     power to make rules(2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—(a) form and manner of prior consent to be given by designated partner under sub-section (3) of section 7;    (zl) the form and manner of the statement and amount of fee payable under sub-paragraph (a) of paragraph 4 of the fourth schedule; and    transitional provisions1of 195681 until the tribunal and the appellate tribunal are constituted under the provisions of the companies act, 1956, the provisions of this act shall have effect subject to the following modifications, namely:—(a) for the word "tribunal" occurring in clause (b) of sub-section (1) of section41, clause (a) of sub-section (1) of section 43 and section 44, the words "company law board" had been substituted;(b) for the word "tribunal" occurring in section 51 and in sections 60 to 64, the words "high court" had been substituted;(c) for the words "appellate tribunal" occurring in sub-section (2) of section 72, the words "high court" had been substituted    rajya   sabha———— a billto amend the limited liability partnership act, 2008________(smt nirmala sitharaman, minister of finance and corporate affairs)mgipmrnd—494rs—28072021