29. ‘Liquidators’ and their appointments

(1) For the purposes of winding up of a LLP by the Tribunal or for the appointment of Provisional Liquidator, there shall be a ‘Liquidator’ who may be either an ‘Official Liquidator’ or a Liquidator appointed by an order of the Tribunal from the panel maintained by the Central Government.

Provided that in the absence of any such order, the Official Liquidator shall become or act as ‘Liquidator’ or ‘Provisional Liquidator’, as the case may be.

(2) For the purposes of appointment of a Liquidator in the winding up order or appointment of Provisional Liquidator from the panel, the Central Government shall maintain a panel consisting of the names of practicing chartered accountants, advocates, practicing company secretaries, practicing cost and works accountants or firms or bodies corporate having chartered accountants, advocates, company secretaries, cost and works accountants and such other professionals as may be notified by the Central Government or from a firm or a body corporate of persons having a combination of such professionals as may be notified by Central Government and having at least ten years’ experience in company or LLP matters and such other qualifications and any other terms and conditions as may be notified by the Central Government.

(3) The Central Government may remove the name of any person or firm or body corporate from the panel maintained under sub-rule (2) on the grounds of misconduct, fraud, misfeasance, breach of duties or professional incompetence:

Provided that the Central Government before removing the name of any such person or firm or body corporate from panel, shall give him or it a reasonable opportunity of being heard.

(4) Every Liquidator appointed from the panel, shall, before entering upon his duties as a Liquidator of the LLP for which he is appointed, furnish security of such sum and in such manner as the Tribunal may direct. The cost of furnishing the required security shall be borne by the Liquidator and shall not be charged against the assets of the LLP as an expense incurred in the winding up.

(5) If the Tribunal is of the opinion that the security furnished by the Liquidator under sub-rule (3) is inadequate, the Tribunal may require the Liquidator to furnish additional security. Where the security furnished is excessive, the Liquidator may apply to the Tribunal for reducing the amount of security, and the Tribunal may make such order thereon as it thinks fit.

(6) The terms and conditions of appointment of a liquidator from panel and the fee payable to him shall be specified by the Tribunal on the basis of task required to be performed, experience, qualification and size of the LLP.

(7) On appointment as Provisional Liquidator or Liquidator from panel, such liquidator shall file a declaration in the Form No 6 disclosing conflict of interest or lack of independence in respect of his appointment, if any, with the Tribunal and such obligation shall continue throughout the term of his or its appointment.

(8) A Liquidator shall be described by the style of “The Liquidator” of the particular LLP in respect of which he acts and not by his or its name.