Llp act liability

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This discussion clarifies liability within a Limited Liability Partnership (LLP). Generally, an LLP is liable for business-related wrongful acts or omissions, not individual partners for another's actions. However, a partner remains personally liable for their own intentional or unintentional wrongful acts or omissions. While the LLP is primarily liable to external parties, a partner may need to indemnify the LLP if their actions caused loss, depending on the LLP agreement.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

18 May 2021 if a partner is liable for any wrongful acts or omission during the course of business or with the authority of llp.. then who is liable ... is it llp or the partner committing the wrongful act or omission is personally liable... and according to which section

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 May 2021 Every partner of an LLP would be, for the purpose of the business of the LLP, an agent of the LLP but not of the other partners. Liability of partners shall be limited except in case of unauthorized acts, fraud and negligence. But a partner shall not be personally liable for the wrongful acts or omission of any other partner. An obligation of the limited liability partnership whether arising in contract or otherwise, is solely the obligation of the limited liability partnership. The liabilities of LLP shall be met out of the property of the LLP.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

19 May 2021 sir what i mean to ask is for eg.. if I do any omission during course of business, then who will be liable ....me(the partner),, or the llp or both partner and llp

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 May 2021 In such a case llp is liable as it's related to business transactions.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

19 May 2021 So sir will partner in default require to indemnify the llp

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

19 May 2021 Sir can u please explain subsection 2 of section 28 which say that The provisions of sub-section (3) of section 27 and sub-section (1) of this section shall not affect the personal liability of a partner for his own wrongful act or omission, but a partner shall not be personally liable for the wrongful act or omission of any other partner of the limited liability partnership.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 May 2021 Partner in default require to indemnify the llp only if so provided in the llp agreement.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 May 2021 A partner shall not be personally liable for the wrongful act or omission of any other partner of the limited liability partnership.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

20 May 2021 Sir what does this means The provisions of sub-section (3) of section 27 and sub-section (1) of this section shall not affect the personal liability of a partner for his own wrongful act or omission

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 May 2021 I meant he is personally liable for wrongful acts intentionally made. But other partners are not liable for this act.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

21 May 2021 In short sir what would you say in respect of liability if partners in case of wrongful act and omission if made intentionally and unintentionally

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 May 2021 In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence. Only the concerned partner is liable for his misconduct and negligence.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

31 May 2021 case-1 sir if a partner unintentionally do wrongful act or omission during the course of business or with authority,who will be liable, the partner only, the llp only or the llp will be laible to outsiders and partner will be required to indemnify the llp

case-2 if intentionally partner do wrongful act or omission in the course of business or with its authority, who will be liable, the partner only, the llp only or the llp will be laible to outsider and partner will indemnify the llp

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