NS & Associates LLP, formed in 2021, manufactures plastic parts for automobiles, with Mr. Naveen and Mr. Suresh as designated partners. In 2022,…

Provisions of the Law: According to section 31 of the Limited Liability Partnership Act, 2008, (1) The Court or Tribunal may reduce or waive any penalty leviable against any partner or employee of a limited liability partnership, if it is satisfied that: (a) such partner or employee of a limited liability partnership has provided useful information during investigation of such limited liability partnership; or (b) when any information given by any partner or employee (whether or not during investigation) leads to limited liability partnership or any partner or employee of such limited liability partnership being convicted under this Act or any other Act. (2) No partner or employee of any limited liability partnership may be discharged, demoted, suspended, threatened, harassed or in any other manner discriminated against the terms and conditions of his limited liability partnership or employment merely because of his providing information or causing information to be provided pursuant to sub-section (1) Analysis and Conclusion: As per facts of the question and provision of the Act, (i) Yes, the Tribunal may waive or reduce the ₹1,75,000 penalty on Mr. J, since he provided information useful to the investigation. (ii) No, section 31(2) protects a whistle-blowing partner or employee from being discharged, demoted, suspended, threatened, harassed or otherwise discriminated against merely for providing such information. The LLP cannot lawfully suspend Mr. J on this ground.