ABC Solutions LLP, registered under the Limited Liability Partnership Act, 2008, operates a software consultancy firm based in Punjab with two…

ABC Solutions LLP, registered under the Limited Liability Partnership Act, 2008, operates a software consultancy firm based in Punjab with two partners: Mr. X (as the Designated Partner) and Mr. Y. The LLP Agreement requires a 30-day notice for resignation, but Mr. Y skips notice to Mr. X and the firm and unilaterally files Form 6 with the Registrar of Companies (RoC) in January 2026, intimating cessation of his partnership interest with immediate effect. The LLP fails to file the mandatory Form 4 with the Registrar within the prescribed time period, a attracting a penalty of 100 per day for each designated partner. Mr. X, having knowledge of Mr. Y's cessation since January 2026, continues to run the business as the sole remaining partner, enters into new client contracts, and incurs supplier debts amounting to 50 lakh over the next eight months without admitting any new partner. Suppliers now pursue recovery from Mr. X's personal assets, including his family home in Ludhiana, claiming the LLP's limited liability shield no longer applies. On the basis of above facts and by applying applicable provisions of the Limited Liability Partnership Act, 2008 and the applicable Rules therein, choose the correct answer (one out of four) of the following Multiple Choice Questions given herein under: