Unlimited liability in case of fraud
Section 30 of the Limited Liability Partnership Act, 2008 deals with unlimited liability in case of fraud. In the event of an act carried out by a limited liability partnership, or any of its partners, with intent to defraud creditors of the limited liability partnership or any other person, or for any fraudulent purpose, the liability of the limited liability partnership and partners who acted with inte The Act came into force on 31 Mar 2009.
(1) In the event of an act carried out by a limited liability partnership, or any of its partners, with intent to defraud creditors of the limited liability partnership or any other person, or for any fraudulent purpose, the liability of the limited liability partnership and partners who acted with intent to defraud creditors or for any fraudulent purpose shall be unlimited for all or any of the debts or other liabilities of the limited liability partnership:
Provided that in case any such act is carried out by a partner, the limited liability partnership is liable to the same extent as the partner unless it is established by the limited liability partnership that such act was without the knowledge or the authority of the limited liability partnership.
(2) Where any business is carried on with such intent or for such purpose as mentioned in sub-section (1), every person who was knowingly a party to the carrying on of the business in the manner aforesaid shall be punishable with imprisonment for a term which may extend to 1[five years] and with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees.
(3) Where a limited liability partnership or any partner or designated partner or employee of such limited liability partnership has conducted the affairs of the limited liability partnership in a fraudulent manner, then without prejudice to any criminal proceedings which may arise under any law for the time being in force, the limited liability partnership and any such partner or designated partner or employee shall be liable to pay compensation to any person who has suffered any loss or damage by reason of such conduct:
Provided that such limited liability partnership shall not be liable if any such partner or designated partner or employee has acted fraudulently without knowledge of the limited liability partnership.
Section 30, The Limited Liability Partnership Act, 2008 (Act 6 of 2009).
Made under this section, and citing it
4 instruments name this provision in its title or its text without being made under it.
- Notification of sections 1, 2 (except clauses (c) and (u) of its sub-section (1)), Sections 3 to 30, Section 31 except of its application in context of the 'Tribunal', Sections 32 to 50, Sections 52 to 54, Sections 59 to 62, Sections 66 to 71, Sections 74 to 80, Section 81 except clasuses (b) to the extent of its application to Sections 51, 63 and 64 and clause (c), First ScheduleNotification 2009
- Corrigendum to LLP amendment rules, 2012 (GSR 430(E) dated 5th June 2012): G.S.R 485(E) (220 KB)Rule 2012
- Limited Liability Partnership (Winding up and Dissolution) Rules, 2012: G.S.R. 550(E) (8 MB)Rule 2012
- Limited Liability Partnership Rules, 2009: G.S.R. 229(E) (6.8 MB)Rule 2009
Questions about Section 30
What does Section 30 of the Limited Liability Partnership Act deal with?
Section 30 of the Limited Liability Partnership Act is headed "Unlimited liability in case of fraud". In the event of an act carried out by a limited liability partnership, or any of its partners, with intent to defraud creditors of the limited liability partnership or any other person, or for any fraudulent purpose, the liability of the limited liability partnership and partners who acted with inte
How do I find court cases under Section 30 of the Limited Liability Partnership Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Limited Liability Partnership Act 30, section 30 Limited Liability Partnership Act, section 30 of the Limited Liability Partnership Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 30 of the Limited Liability Partnership Act, and has it changed?
4 instruments name it without being made under it, most recently Notification of sections 1, 2 (except clauses (c) and (u) of its sub-section (1)), Sections 3 to 30, Section 31 except of its application in context of the 'Tribunal', Sections 32 to 50, Sections 52 to 54, Sections 59 to 62, Sections 66 to 71, Sections 74 to 80, Section 81 except clasuses (b) to the extent of its application to Sections 51, 63 and 64 and clause (c), First Schedule (2009), then Corrigendum to LLP amendment rules, 2012 (GSR 430(E) dated 5th June 2012): G.S.R 485(E) (220 KB) (2012).
When did Section 30 of the Limited Liability Partnership Act come into force?
Section 30 of the Limited Liability Partnership Act, cited as Limited Liability Partnership Act 30, came into force on 31 Mar 2009, having been enacted on 07 Jan 2009. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.