Schedule 10 of The Insolvency and Bankruptcy Code, 2016. in hindi
Summary
- It amends the Limited Liability Partnership Act, 2008 by deleting Section 64, clause (c). A limited liability partnership is a business where partners are protected from personal liability for company debts.
- Deleting clause (c) removes the ground that allows the Tribunal to wind up a limited liability partnership because it cannot pay its debts. Winding up means closing the business and selling off its assets to pay creditors.
- It shifts the legal procedure for managing a limited liability partnership's inability to pay its debts from the partnership act to the new insolvency code.
Practical examples
FAQ
1. How does the Tenth Schedule of the Insolvency and Bankruptcy Code, 2016 affect limited liability partnerships?
The Tenth Schedule of the Insolvency and Bankruptcy Code, 2016 deletes clause (c) of Section 64 of the Limited Liability Partnership Act, 2008, which previously allowed winding up for inability to pay debts.
2. Which specific section of the Limited Liability Partnership Act, 2008 is amended by the Tenth Schedule of the Insolvency and Bankruptcy Code, 2016?
Section 64 of the Limited Liability Partnership Act, 2008 is amended, and its clause (c) is completely removed.
3. Why was clause (c) of Section 64 of the Limited Liability Partnership Act, 2008 omitted?
It was removed to ensure that all cases of debt default and insolvency for limited liability partnerships are processed under the Insolvency and Bankruptcy Code, 2016.
Test yourself
Q1.Under the Tenth Schedule of the Insolvency and Bankruptcy Code, 2016, which clause of Section 64 of the Limited Liability Partnership Act, 2008 is omitted?
Q2.Under the Tenth Schedule of the Insolvency and Bankruptcy Code, 2016, which Act's provisions are directly amended?
Q3.Under the Tenth Schedule of the Insolvency and Bankruptcy Code, 2016, what ground for winding up an LLP is removed from the Limited Liability Partnership Act, 2008?
Q4.Following the changes made by the Tenth Schedule of the Insolvency and Bankruptcy Code, 2016, under what law must an LLP proceed if it fails to pay its creditors?