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Microlesson · 5-min read

Winding Up of LLP (Sections 63 & 64)

## Section 63 — Modes of Winding Up

The winding up of an LLP may be either:

  • Voluntary, OR
  • By Tribunal,

and an LLP, so wound up, may be dissolved.

## Section 64 — Circumstances in Which LLP May Be Wound Up by Tribunal

An LLP may be wound up by the Tribunal in the following situations:

1. Self-decision — The LLP itself decides that it may be wound up by the Tribunal (by passing a resolution).

2. Below minimum partners — The number of partners of the LLP is reduced below two for more than 6 months.

3. Acts against national interest — The LLP has acted against the interests of the sovereignty and integrity of India, security of the State, or public order.

4. Persistent default in filing — LLP has made default in filing with the RoC, the SAS and Annual Return for any 5 consecutive financial years.

5. Just and equitable — The Tribunal is of the opinion that it is just and equitable that the LLP be wound up.

### Memory Tip

Compare with Companies Act, 2013 Section 271 — grounds are very similar, but LLP-specific tweaks include:

  • 6-month tolerance for partner deficiency (vs. members below minimum in Cos Act)
  • 5-year filing default standard (vs. 2 years for company AR)

Worked example

### Example 1

Example: ABC LLP has only one partner since 1st February 2026 (other partner resigned). On 5th September 2026, can the Tribunal wind it up?

Answer: Yes. The deficiency has continued for more than 6 months (Feb to Sept = 7 months). Section 64 ground (2) is satisfied.

### Example 2

Example: PQR LLP defaulted in filing both SAS and AR for FY 2020-21, 2021-22, 2022-23, 2023-24, 2024-25 (5 consecutive years). Can the Tribunal wind it up?

Answer: Yes. Section 64 ground (4) — default in filing SAS and AR for any 5 consecutive FYs is a ground for winding up by Tribunal.

⚠️ Common exam mistakes

  • Quoting 2 years (Companies Act standard) instead of 5 years for filing default.
  • Forgetting the 6-month grace period for below-minimum partners.
  • Confusing voluntary winding up with Tribunal winding up — Section 64 deals only with the latter.
Reference: Sections 63 & 64 — Limited Liability Partnership Act, 2008
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