Other benefits — including promissory notes, agreements to contribute cash/property/services, etc.
### (2) Disclosure of monetary value
The monetary value of every partner's contribution must be accounted for and disclosed in the accounts.
## Section 33 — Obligation to Contribute
### (1) Source
A partner's obligation to contribute is governed by the LLP agreement.
### (2) Enforcement by creditors
A creditor of the LLP, who has extended credit relying on the partner's contribution obligation as recorded in the LLP agreement, may enforce the original obligation against the partner — even if the LLP agreement is later modified to reduce that contribution.
> Why this matters: This prevents partners from defeating creditor claims by quietly amending the LLP agreement to reduce their committed contribution.
Worked example
### Example 1
Example — Form of contribution: Partner A contributes ₹2 lakhs cash; Partner B contributes a delivery van worth ₹3 lakhs; Partner C contributes consultancy services agreed at ₹1 lakh per year. Result: All three are valid contributions under Sec 32, and the monetary value of each (₹2L / ₹3L / ₹1L p.a.) must be disclosed in the accounts.
### Example 2
Example — Creditor enforcement under Sec 33(2): Bank lends ₹50 lakhs to an LLP based on the agreement showing Partner D's commitment to contribute ₹20 lakhs. Later, the partners amend the agreement to reduce D's contribution to ₹5 lakhs. Result: The Bank may still enforce D's original ₹20-lakh commitment, because it extended credit relying on the original obligation.
⚠️ Common exam mistakes
Believing contribution must always be in cash — the LLP Act expressly permits tangible, intangible, services, and even promissory notes.
Forgetting the disclosure requirement — the monetary value of every contribution must appear in the LLP's accounts.
Assuming a later amendment to the LLP agreement can defeat a creditor — Sec 33(2) preserves the original obligation where credit was extended in reliance on it.
Bare-Act text Sections 32–33 · Limited Liability Partnership Act, 2008 · click to expand
Section 32(1) A contribution of a partner may consist of tangible, movable or immovable or intangible property or other benefit to the limited liability partnership, including money, promissory notes, other agreements to contribute cash or property, and contracts for services performed or to be performed. (2) The monetary value of contribution of each partner shall be accounted for and disclosed in the accounts of the limited liability partnership in the manner as may be prescribed.