# Interplay of LLP Act with Other Statutes

## (A) Non-Applicability of Indian Partnership Act, 1932 (Section 4)

Unless otherwise provided, the provisions of the Indian Partnership Act, 1932 shall NOT apply to an LLP.

Implication: An LLP is not a partnership in the traditional sense. Concepts like 'minor admitted to benefits' (Sec 30 of 1932 Act), unlimited joint and several liability of partners etc. do not apply to LLPs.

## (B) Conditional Application of Companies Act, 2013 (Section 67)

### The mechanism

1. The Central Government may, by notification in the Official Gazette, direct that any provisions of the Companies Act, 2013 specified in the notification:

Shall apply to any LLP, OR
Shall apply to any LLP with exceptions, modifications and adaptations as specified.

### Parliamentary safeguard

Before notifying, the Central Government must:

Lay the draft notification before each House of Parliament while it is in session.
Both Houses have 30 days (which may be in one session or two/more successive sessions) to approve, disapprove, or approve with modifications the draft.

## Why two separate clauses?

Section 4 delinks LLPs from the old partnership regime.
Section 67 selectively bridges LLPs to the modern company regime — but only with deliberate executive + parliamentary action.

Worked example

### Example 1

Q. A dispute arises in an LLP about the rights of a partner who claims a right of management on the analogy of Section 12 of the Indian Partnership Act, 1932. Is the 1932 Act applicable?

A. No. Section 4 of the LLP Act expressly excludes the 1932 Act. The matter will be governed by the LLP Agreement and, in its absence, by the First Schedule to the LLP Act.

⚠️ Common exam mistakes

Applying partnership-law concepts (mutual agency, unlimited joint liability, minor's admission to benefits) to LLPs.
Assuming Companies Act provisions automatically apply — they apply only when notified under Section 67 with the parliamentary safeguard.
Forgetting the 30-day Parliamentary review window built into Section 67.

Bare-Act text Sections 4 & 67 · Limited Liability Partnership Act, 2008 · click to expand

Section 4 — Unless otherwise provided, the provisions of the Indian Partnership Act, 1932 shall not apply to a LLP. Section 67 — The Central Government may, by notification in the Official Gazette, direct that any of the provisions of the Companies Act, 2013 specified in the notification shall apply to any LLP, or shall apply to any LLP with such exception, modification and adaptation, as may be specified, in the notification. Before notifying, the Central Government has to lay the notification proposed in draft before each House of Parliament. Both Houses have to finalise the draft proposed within a period of 30 days which may be comprised in one session or in two or more successive sessions.

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Interplay with Other Laws — Non-Applicability of Partnership Act & Conditional Application of Companies Act (Sections 4 & 67)

Worked example

⚠️ Common exam mistakes