The personal liability of a partner in limited liability partnership arises in :
Where a partner continues even the minimum number of partners falls below two to six months
Sec. 6(1) of the Limited Liability Partnership Act, 2008 requires every LLP to have at least two partners. Under Sec. 6(2), if at any time the number of partners falls below two and the LLP carries on business for more than six months, the person who is the only partner during that time and who knows this fact is personally liable for the obligations of the LLP incurred during that period.
Therefore personal liability arises where the partner continues carrying on business even after the number of partners falls below two, for a period of six months; it does not arise immediately upon the fall.
So the immediate-liability option is wrong, and since only one condition is valid, neither 'either' nor 'both' holds.
Hence, the answer is: where a partner continues even when the number of partners falls below two, for six months.
Similar Questions
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Important Questions from Partnership Act, 1932
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Match List - I with List - II and select the correct answer using the code given below :
List - I List - II (a) Partnership not created by status (i) CST v. K. Kelukutty (b) Essentials of partnership (ii) Kshetra Mohan v. Commr. of Excess Profit Tax (c) Joint Hindu Family and partnership (iii) Rakesh Kumar Dinesh Kumar v. U.G. Hotels and Resorts Ltd. (d) Partnership between outsiders and joint family (iv) Ganpat v. Annaji
