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Planning to open up a LLP with one partner who turns out to be a fraud


10-Oct-2023 (In Corporate Law)
I'm an NRI who partnered with another person based in india to form an LLP. He owns 80% stake and I own 20% in the LLP. However, this guy turned out to be a fraud and did not open the company bank account and did not conduct any business. He also failed to file any balance sheet or NIL tax filings for the past two years despite my email and phone requests. I understand if there is any delay in such company filings there is a penalty of 100Rs per day. Is there any legal recourse that i can take to ensure that he is resposible for such penalties and also make him finish the formalities? Is there a way i can safely exit the LLP without his co-operation and without financial or legal liabilities?
Answers (3)

Answer #1
691 votes
Dear Sir/Madam, The terms and conditions as mentioned in your constitutional document (Partnership Deed) needs to be looked at to see what all roles your partner was supposed to discharge. If it is established that he did not do so (omission) or deliberately did something beyond the ambit of the partnership deed (Commission), then liability may be affixed upon him for failure or acting ultra-vires. Such failure may give rise to both civil and criminal recourse. Documents will have to be looked into for further details. Adv Maneesh Dixit
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Advocate Maneesh M. Dixit

Adv. Maneesh M. Dixit

LawRato Mumbai | 25+ Answers
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Answer #2
642 votes
Issue him a legal notice for cheating and fraud and if you have contributed any money in LLP then you can also claim. Further you also give your resignation as a Partner from LLP and inform him for dissolution of the LLP. For further action, you can also file notice with the Ministry of Corporate Affairs about the mismanagement of the LLP. For further details you can contact me so that i can understand the situation in detail.
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Advocate Bankim Mehta

Adv. Bankim Mehta

LawRatoMumbai | 200+ Answers
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Answer #3
557 votes
Dear sir, you need to appoint an advocate through whom complaint required to be lodged with Ministry of corporate affairs, they will conduct the preliminary inquiry and give suitable direction to other partner. In addition to this, u need to resign as partner by filling a form and submitting to us and we will submit and make corrospondence with MCA. kindly contact us for more details.
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Advocate Suhail Parvez Gulam Shaikh

Adv. Suhail Parvez Gulam Shaikh

LawRatoMumbai | 50+ Answers
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