Chapter XII - Compromise, Arrangement or Reconstruction of Limited Liability Partnerships
Section 61
Section 61: Power of Tribunal to enforce compromise or arrangement
The Tribunal may supervise a sanctioned section 60 compromise, give directions or modifications, and order winding up if the arrangement cannot work satisfactorily.
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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) Where the Tribunal makes an order under section 60 sanctioning a compromise or an arrangement in respect of a limited liability partnership, it— (a) shall have power to supervise the carrying out of the compromise or an arrangement; and (b) may, at the time of making such order or at any time thereafter, give such directions in regard to any matter or make such modifications in the compromise or arrangement as it may consider necessary for the proper working of the compromise or arrangement. (2) If the Tribunal aforesaid is satisfied that a compromise or an arrangement sanctioned under section 60 cannot be worked satisfactorily with or without modifications, it may, either on its own motion or on the application of any person interested in the affairs of the limited liability partnership, make an order for winding up the limited liability partnership, and such an order shall be deemed to be an order made under section 64 of this Act.
Introduction
Follow both the original sanction order and later directions; affected parties can apply if implementation fails.
Key takeaways
Supervision
The Tribunal may supervise an arrangement it sanctioned under section 60.
Modification
It may give directions or modify the arrangement for proper working.
Failure
If the arrangement cannot work satisfactorily, it may order winding up under section 64.
Track implementation
Compare conduct with both the sanction order and later Tribunal directions.
Address failure
An interested person may apply, or the Tribunal may act on its own motion, where the arrangement cannot work satisfactorily.
Practical preparation
Read the sanction order: Identify the terms the Tribunal sanctioned under section 60.
Assess implementation: Document the obstacle and whether directions or modifications could make the arrangement workable.
Seek Tribunal relief: An interested person may apply for directions; if the scheme cannot work, the Tribunal may order winding up.
Practical checklist
Do
- Compare conduct with both the sanction order and later Tribunal directions.
- An interested person may apply, or the Tribunal may act on its own motion, where the arrangement cannot work satisfactorily.
Avoid
- Do not apply this section without checking its stated conditions and any prescribed rules.
Illustrative example
Hypothetical: section 61 in practice
A Tribunal-sanctioned creditor arrangement encounters a payment obstacle after approval.
Read the sanction order
Identify the terms the Tribunal sanctioned under section 60.
Assess implementation
Document the obstacle and whether directions or modifications could make the arrangement workable.
Seek Tribunal relief
An interested person may apply for directions; if the scheme cannot work, the Tribunal may order winding up.
Outcome
- The Tribunal can supervise, direct or modify implementation, and may order winding up if the arrangement cannot work satisfactorily.
Glossary
- Power of Tribunal to enforce compromise or arrangement
- The Tribunal may supervise a sanctioned section 60 compromise, give directions or modifications, and order winding up if the arrangement cannot work satisfactorily.
Frequently asked questions
What does section 61 address?
The Tribunal may supervise a sanctioned section 60 compromise, give directions or modifications, and order winding up if the arrangement cannot work satisfactorily.
What should be checked in practice?
Follow both the original sanction order and later directions; affected parties can apply if implementation fails.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026