LLP

Topic 53 Registrar Powers Section68to75

THE LEGAL BRIDGE

Judiciary Examination Study Material

Topic 53

Registrar's Powers — Inspection & Strike-off

Sections 68–75: Inspection, Call for Information, Strike-off & Restoration

Pillar 6 — Investigation & Regulatory Powers (Sections 43–57)

Module Overview

The Registrar of Companies exercises important regulatory powers over LLPs under Sections 68–75. These include inspection of public documents, calling for information, enforcing compliance, and most significantly striking off defunct LLPs from the register. This topic covers the complete range of Registrar powers, the strike-off procedure, and the 5-year restoration mechanism.

53.1 Registrar's Powers — Overview (Sections 68–75)

Section

Power

Content

Section 68

Public inspection

Any person may inspect LLP documents filed with Registrar on payment of fee — available on MCA21

Section 69

Call for information

Registrar can require LLP/partners to provide information within specified time

Section 70

Enforce duty to file

Registrar can apply to court for order compelling LLP to comply with filing obligations

Section 71

Legal proceedings

Registrar authorised to institute legal proceedings against LLP for contraventions

Section 75

Strike-off

Registrar may strike off defunct LLP's name from the register

53.2 Section 75 — Strike-Off of Defunct LLP

Section 75(1)

The Registrar may strike off the name of a limited liability partnership from the register if he has reasonable cause to believe that the LLP is not carrying on any business or its operations.

Ground for Strike-Off

Trigger

Process

LLP is defunct

Not carrying on business; has not filed annual returns for 2 consecutive years

Registrar issues show-cause notice; LLP has 30 days to respond; no response = strike-off

Voluntary application by LLP

LLP applies for dissolution

Partners' consent; liabilities discharged; application in prescribed form

Post-investigation strike-off

CG instructs Registrar after inspector's report

Fast-tracked; used when fraud is established

53.3 Section 75(4) — Restoration Within 5 Years

A struck-off LLP can be restored to the register within five years of the strike-off date:

  • By Registrar: On application by the LLP — if struck off due to administrative default and LLP can demonstrate it was not defunct.
  • By NCLT: If any creditor or partner can show the LLP was carrying on business at the time of strike-off, or that it is just and equitable to restore it.
  • Retrospective effect: Restoration is retrospective — the LLP is deemed to have never been struck off; all rights, assets, and obligations are revived.

⚖ Chhattisgarh Distilleries Ltd. v. Registrar of Companies HC (2018) — applied to LLP

Held: The court held that before striking off, the Registrar must give a reasonable opportunity to the entity to show cause — natural justice applies. The 30-day response window is a mandatory procedural requirement.

Principle: Natural justice requires show-cause notice before strike-off — the 30-day response window is mandatory.

📌 EXAM TIP: Strike-off exam points: (1) Section 75 — Registrar may strike off if LLP is defunct; (2) Primary trigger: non-filing for 2 consecutive years; (3) Procedure: show-cause notice + 30-day response window; (4) Restoration: within 5 years — by Registrar or NCLT; (5) Restoration is retrospective — entity deemed never struck off.

Key Point

Core Content

Section 68

Public inspection of LLP documents on MCA21 portal

Section 69

Registrar can call for information from LLP/partners

Section 75

Strike-off — defunct LLP; non-filing for 2 consecutive years

Natural justice

30-day show-cause notice mandatory before strike-off

Restoration

Within 5 years; by Registrar or NCLT; retrospective effect

Section 70

Registrar can apply to court to compel compliance with filing obligations