Scribd
Upload
90 views2 pages

Example Section 33

Section 33 of the LLP Act, 2008 outlines the obligations of partners to contribute to a limited liability partnership as per their LLP agreement, including monetary, property, or service contributions. It specifies that creditors can enforce original obligations against partners if they extend credit based on the LLP agreement, regardless of any internal compromises made later. The examples illustrate how these obligations are documented and enforced in practice.

Uploaded by

mittalharshit1028
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
90 views2 pages

Example Section 33

Section 33 of the LLP Act, 2008 outlines the obligations of partners to contribute to a limited liability partnership as per their LLP agreement, including monetary, property, or service contributions. It specifies that creditors can enforce original obligations against partners if they extend credit based on the LLP agreement, regardless of any internal compromises made later. The examples illustrate how these obligations are documented and enforced in practice.

Uploaded by

mittalharshit1028
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Here are examples to illustrate each sub-section of Section 33 of the LLP Act, 2008 –

Obligation to Contribute:

Sub-section (1):

“The obligation of a partner to contribute money or other property or other benefit or to perform
services for a limited liability partnership shall be as per the limited liability partnership agreement.”

Example:

ABC LLP is formed with three partners: Arjun, Beena, and Chetan. As per the LLP agreement:

 Arjun agrees to contribute ₹5,00,000 in cash.

 Beena contributes her office premises for use by the LLP.

 Chetan agrees to provide full-time consultancy services to the LLP.

In this case, the contributions — whether monetary, property, or services — are based on the mutual
agreement documented in the LLP agreement. These obligations are enforceable under Sub-section (1).

Sub-section (2):

“A creditor of a limited liability partnership, which extends credit or otherwise acts in reliance on an
obligation described in that agreement, without notice of any compromise between partners, may
enforce the original obligation against such partner.”

Example:

Let’s say XYZ LLP takes a ₹10 lakh loan from a bank based on the LLP agreement, which states that
Partner Ravi will contribute ₹5 lakh to the LLP. The bank verifies the agreement and grants the loan
relying on this clause.

Later, without informing the bank, the partners internally agree that Ravi will only contribute ₹2 lakh.

If the LLP defaults on the loan, the bank — unaware of the internal compromise — can still enforce Ravi’s
original obligation of ₹5 lakh, as per the LLP agreement relied upon when the credit was extended.

Would you like these examples formatted for a legal note or board presentation?

4o

You said:

if I am not wrong sub section 1 talks about the amount of contribution which will be stated in LLP
agreemnet

ChatGPT said:
You're absolutely right — Sub-section (1) of Section 33 of the LLP Act primarily affirms that the
obligation of a partner to contribute (whether in money, property, benefits, or services) is governed by
the LLP agreement. This includes:

 Amount of contribution

 Form of contribution (cash, property, services, etc.)

 Timing and terms of contribution

So yes, the LLP agreement is the authoritative document that defines how much each partner is to
contribute and in what form. This sub-section essentially gives contractual force to the terms agreed
upon by partners.

Refined Example for Sub-section (1):

If the LLP agreement of TechFlow LLP states that:

 Partner A will contribute ₹10 lakhs,

 Partner B will contribute laptops worth ₹5 lakhs,

 Partner C will contribute technical consulting services worth ₹3 lakhs annually,

Then each of these contributions are binding obligations solely because they are stated in the LLP
agreement.

You might also like