KLP & Associates LLP comprises of three partners Kamlesh, Luvkush and Pradeep and was incorporated under an agreement in the year 2020. Mr.…

CA Intermediate · Corporate and Other Laws · PYQS · September 2025
KLP & Associates LLP comprises of three partners Kamlesh, Luvkush and Pradeep and was incorporated under an agreement in the year 2020. Mr. Pradeep one of the partners has decided to leave the LLP and start his own business. He has informed Mr. Luvkush, one of the Designated Partner of the LLP, of his decision to leave and has urged to proceed with the formalities. Even after one month of leaving the LLP, Mr. Pradeep was continuously receiving phone calls from creditors of LLP for payment of the dues thus convincing him to believe that the LLP has neither informed the outsiders nor the Registrar about his leaving the LLP. The LLP was also not responding to Mr. Pradeep's queries. Referring to the provisions of the Limited Liability Partnership Act, 2008, what is the step that Mr. Pradeep can take to escape his liability post quitting the LLP?
(A) (A) Mr. Pradeep should further follow-up with LLP and ask it to submit Form 4 to the Registrar informing about the above event as he himself cannot file Form 4 with the Registrar.
(B) (B) Mr. Pradeep should himself file Form-4 with the Registrar who would then send a show-cause notice to the LLP.
(C) (C) Mr. Pradeep can himself issue a public notice in the one English and one vernacular newspaper disclosing his status as an outsider to the LLP.
(D) (D) The Registrar would himself contact the LLP and enquire about Mr. Pradeep's status.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

(B) Mr. Pradeep should himself file Form-4 with the Registrar who would then send a show-cause notice to the LLP.

Topics: The Foreign Exchange Management Act, 1999, The Limited Liability Partnership Act, 2008

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic