Chapter II - Nature of Limited Liability Partnership
Section 10
Section 10: penalties for designated partner defaults
Section 10 specifies monetary penalties for the designated partner minimum, appointment particulars, eligibility and vacancy rules.
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Need advice on Section 10?
This article is for general information. Refer to the Limited Liability Partnership Act, 2008 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) If the limited liability partnership contravenes the provisions of sub-section (1) of section 7, the limited liability partnership and its every partner shall be liable to a penalty of ten thousand rupees and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for every partner of such limited liability partnership.
(2) If the limited liability partnership contravenes the provision of sub-section (4) of section 7, such limited liability partnership and its every designated partner shall be liable to a penalty of five thousand rupees and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of fifty thousand rupees for the limited liability partnership and twenty-five thousand rupees for its every designated partner.
(3) If the limited liability partnership contravenes the provisions of sub-section (5) of section 7 or section 9, such limited liability partnership and its every partner shall be liable to a penalty of ten thousand rupees, and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for its every partner.
Introduction
The 2021 amendment replaced the earlier fine provisions with specific penalties and removed section 8 from this section's heading. Each subsection identifies its own default, liable persons, daily increment and cap.
Key takeaways
Section 7(1)
LLP and every partner: ₹10,000, plus ₹100 for each continuing day after the first, capped at ₹1 lakh for the LLP and ₹50,000 per partner.
Section 7(4)
LLP and every designated partner: ₹5,000, plus ₹100 for each continuing day after the first, capped at ₹50,000 for the LLP and ₹25,000 per designated partner.
Section 7(5) or 9
LLP and every partner: ₹10,000, plus ₹100 for each continuing day after the first, capped at ₹1 lakh for the LLP and ₹50,000 per partner.
Identify the correct default
Separate failure to maintain the section 7(1) minimum, failure to file section 7(4) particulars, and failures under section 7(5) or section 9.
Identify the liable persons
Subsection (2) names designated partners; subsections (1) and (3) name every partner. Do not apply one group to all three penalties.
Calculate the continuing amount
Count days after the first day of continuing contravention and apply the relevant separate cap to the LLP and each specified person.
Practical checklist
Do
- Record the default start and cure dates.
- Use the particular subsection's amount, persons and cap.
Avoid
- Do not use the pre 2022 fine ranges for current defaults.
- Do not treat all three subsections as imposing penalties on the same individuals.
Illustrative example
Hypothetical: late particulars filing
Dawn LLP appoints a designated partner but files the section 7(4) particulars after the statutory 30 day period.
Confirm default
Check the appointment and filing dates against section 7(4).
Choose subsection
Apply section 10(2) to a section 7(4) filing contravention.
Calculate
Assess the ₹5,000 base and any ₹100 continuing daily amount, subject to the separate LLP and designated partner caps.
Outcome
- The applicable penalty group is the LLP and every designated partner under section 10(2), subject to adjudication and the statutory caps.
Glossary
- Continuing contravention
- A default that remains unremedied after its first day and may attract the stated daily penalty.
- Penalty cap
- The statutory maximum applied separately to the LLP and each specified person.
Frequently asked questions
Does section 10 still penalise section 8 directly?
The 2021 amendment removed section 8 from section 10's heading and replaced the penalty clauses. Section 8's own responsibility rule remains.
Who is liable for a section 7(4) particulars filing default?
Section 10(2) identifies the LLP and every designated partner, with separate caps of ₹50,000 and ₹25,000 respectively.
What is the daily increment?
Each subsection specifies ₹100 for each day after the first during which the contravention continues, subject to its applicable caps.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026