Page 34 - Jan 2023 MSME PLUS Magazine JAN 23

There were no provisions with regard to the committed the offence under LLP Act not
signing of the Statement of Account and
Solvency of the LLPs under insolvency.
8. Compounding of offences :
The Act permitted the local Director or
some other official not below the rank of
Regional Director, duly authorized by the
central government to compound offences
under the limited liability partnership act.
l If an Offence by an LLP or Its
Accomplices is Compounded, A
C o m p a r a b l e O ff e n c e c a n ' t
Compounded for a Period of 3 years.
l Any Second or Subsequent Offence
committed after the expiry of the Period
of 3 years from the date on which the
Offence was previously compounded
shall be deemed to be the first Offence.
l The LLP (Second Amendment) Rules,
2022 added new Rules 37A, 37B, 37C,
and 37D Regarding the Penalties of the
Offence.
9. Adjudicating Officers :
The Central Government may appoint
adjudicating officers to award penalties
under the Limited Liability Partnership Act.
These officers are not below the rank of
Registrar. These officers are appointed by
the Chief Justice of the High Court. These
officers have the power to entertain the
cases of appeals against the adjudicating
officer's orders. The officer will give notice to
an LLP or any other person who has
less than 15 days but not more than 30 days.
This notice notifies the offence and penalties
which are imposed. The LLP or any other
person should reply to the notice only in
electronic mode.
The adjudicating officer will pass an
order in writing after giving a reasonable
opportunity of being heard by the LLP. The
officers pass an order within 30 days of the
expiry of the period mentioned in the notice
b e where the physical appearance of the party
is not required. The concerned person
appeared before the adjudicating officer
within 90 days from the day of the issue of
notice.
The penalty should be paid through the
MCA portal and this penalty amount will be
credited to the Consolidated Fund of India.
Appeal against order of Adjudicating
Officer:- According to Rule 37B of the LLP
(Second Amendment) Act,2022 the person
against whom the adjudicating officer
passes an order of penalty can file an
advance against such request with the
Regional Director's jurisdiction in the matter.
The appeal must be filed within 60 days in
form 33 of LLP.
10. Registration of Appeal :
According to Rule 37C of the LLP
(Second Amendment) Act,2022 the appeal
will be registered and given a serial number
if it is found to be in order after scrutiny. The
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