Condition of delay u/s 460 Companies act is now applicable to LLP

Condition of delay u/s 460 Companies act is now applicable to Limited Liability Partnership

The Ministry of Corporate Affairs (MCA) vide notification dated January 30, 2020, has directed that the provisions of Section 460 of the Companies Act, 2013 shall apply to a limited liability partnership (LLP).

This Section 460 of the Companies Act, 2013 talks about condonation of delay in cases where any application along with any document is required to be filed with the Registrar but is not filed within the requisite time, the Central Government may, for the reasons to be recorded in writing condone the delay.

That leaves us with an interpretation that if there is any delay in filing any document/forms with ROC the LLP’s will have a chance to condone the delay. The documents which the LLP are required to file on MCA may include:

1. Statement of Account and Solvency in Form 8 with the Registrar, within a period of 30 days from the end of 6 months of the financial year to which the Statement of Account and Solvency relates.

2. Filing of Annual return within 60 days from the closure of its financial year in FORM-11.

3. Information with regard to any change in LLP agreement is required to be filed within 30 days of such change with ROC.

4. Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/designated partner shall be filed with ROC in Form 4 within 30 days of such appointment/cessation, as the case may be.

5. Notice for change of name of LLP shall be filed with ROC in Form 5 within 30 days from the date of obtaining consent from all the partners.

6. Notice for change of place of the registered office of LLP under Section 13 read with rule 17, shall be filed with the ROC in Form 15 within 30 days from taking the consent from all the partners or as per agreement.

CONCLUSION 

Undoubtedly, it’s a great step to prevent the miscarriage of justice taken by the ministry to condone the delay when the delay is occasioned for the reason beyond the control. But, there is also another side of that we shall not make this provision a tool in the hands of lawbreakers to take advantage of it. Therefore, the decision about whether the delay should be condoning or not has to be taken judicially and not arbitrarily.

That the provisions of section 460 of the Companies Act, 2013 shall apply to a limited liability partnership from 30^th January, 2020