Are all the partners liable for cheating by one partner

682 votes

This is subjected to the agreement your LLP entered upon and the nature and fashion of the cheating committed. To inform you the liability of your LLP and other partner's I will need to peruse your LLP documents.

Advocate Ankit Chaturvedi LawRato

807 votes

LLP is limited liabilit partnership. Accademically Every partner is limited to the amount of share he holds. As a matter of practicality, say you have 75% of the shares. In that case you have already given the extent of your liability in form of capital. So even if the liability is more than you have invested it cannot be recovered from you.
In situations like this it is always recommended to settle the issue withthethird party to save thename of the firm and later onyou can file a civil suit against your partner to recover the expenses.

Advocate Deepak Thackur LawRato

648 votes

as per law for every partner shall be responsible for act of the partner related to the business and transaction of the firm. but a partner who cheated to other has no concern with the business of the firm in this case neither the firm nor the other partner shall be liable.

Advocate Rajesh Kumar LawRato

939 votes

Had the cheating been committed in capacity of him being a partner or personally? What I mean is whom was the the aggrieved person been dealing with- LLP or were the partner and that person were involved in a personal dealing? In the latter case, neither the LLp not you Are liable. However in the first case, liabilities will have to be met out of the property of the llp. I would like to see your llp agreement to advise you further on this.

Advocate Mansi Airi Gambhir LawRato

668 votes

No the other partners will not be liable since there is no concept of vicarious liability in criminal law. It is settled principle of law that criminal liability is strict liability. The position will be different if the firm gained from the cheating.
Varun Ahuja
Advocate

Advocate Varun Singh Ahuja LawRato