Winding up and Dissolution [Sections 63 — 65]

A neighbourhood shop that closes its shutters for the last time simply stops trading. But an LLP is a legal person with a certificate from the State, and it cannot simply stop existing because its partners are tired of each other. Someone has to collect its assets, pay its creditors, and then have the name removed from the register. How does an LLP die in law, and who can push it towards that end? Sections 63 to 65 give the skeleton, and a few other provisions fill it out.

In two minutes

An LLP may be wound up voluntarily or by the Tribunal, and once wound up may be dissolved; the Tribunal can order winding up on five listed grounds, and the detailed procedure is left to rules made by the Central Government.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Contract – II on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.