Sections 44 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 44 says what partners must show when they apply for an investigation under section 43(1)(a), and lets the Central Government ask them for security for the costs. Section 45 says that only an individual can be an inspector: no firm, body corporate or other association may be appointed. If you are a partner considering an application, our dispute resolution service can help you prepare it.
An application by partners under section 43(1)(a) must be supported by such evidence as the Tribunal may require to show that the applicants have good reason for requiring the investigation. Before appointing an inspector, the Central Government may require the applicants to give security of the prescribed amount for payment of the costs of the investigation (s.44). No firm, body corporate or other association shall be appointed as an inspector (s.45).
Section 44: evidence and security
The section deals with "an application by partners of the limited liability partnership under clause (a) of sub-section (1) of Section 43", the application to the Tribunal by not less than one-fifth of the total number of partners. See section 43.
Evidence
The application "shall be supported by such evidence as the Tribunal may require for the purpose of showing that the applicants have good reason for requiring the investigation."
- The standard is good reason. The applicants need not prove fraud. They must show good reason for requiring an investigation.
- The Tribunal decides what evidence it requires. The section does not list documents or a form of affidavit.
- The text is silent on how much evidence is enough. That is for the Tribunal to judge in each case.
Security for costs
The Central Government "may, before appointing an inspector, require the applicants to give security, of such amount as may be prescribed, for payment of costs of the investigation".
| Point | What the text says |
|---|---|
| Who asks | The Central Government |
| When | Before appointing an inspector |
| From whom | The applicants |
| Amount | As may be prescribed (the Act states no figure) |
| Purpose | Payment of the costs of the investigation |
The word is "may", so the Government has a discretion. This article states no amount, as the Act does not.
Where the costs end up. Section 53 provides that the expenses of an investigation are paid in the first instance by the Government but may be recovered from certain persons. For an investigation begun on partners' application under s.43(1)(a), s.53(1)(c)(ii) makes the applicants liable "to such extent, if any, as the Central Government may direct" unless a prosecution follows from the investigation. See sections 53 and 54. The security under s.44 is a way of covering this.
Example. Three of twelve partners in Chawla Trading LLP apply to the Tribunal under s.43(1)(a), alleging that the LLP's funds have been moved to a related party. Three partners exceed one-fifth of twelve (which is 2.4), so the threshold is met. They file bank statements and ledger extracts as evidence. The Tribunal declares that the affairs ought to be investigated, and, before appointing an inspector, the Government requires the applicants to give security of the prescribed amount for the costs.
Section 43(3)(a) is separate
Section 43(3)(a) has its own reference to "supporting evidence and security amount as may be prescribed" for an application made directly to the Central Government. Section 44 refers by its words to the application under clause (a) of sub-section (1) of section 43. Do not read s.44 as governing both; the text of s.44 is limited to the Tribunal route, though the Government's power to ask for security appears in both places.
Section 45: who cannot be an inspector
"No firm, body corporate or other association shall be appointed as an inspector."
- The inspector must therefore be a natural person. Section 43 speaks of "competent persons" being appointed as inspectors.
- A firm (for example a partnership of professionals), a body corporate (which includes a company and an LLP, as defined in s.2(1)(d), as amended) and any other association are all excluded.
- The section does not say what qualifications an inspector must have. Section 43 uses the phrase "competent persons", and the rest is left to the Government.
The reason for the rule can be seen from the powers of an inspector: he examines on oath, may call for books and papers and reports to the Government (sections 46 to 49). Those are personal functions of an individual. The Act does not itself explain the reason; this is an observation about how the powers are described. See sections 46 and 47.
Practical points for partners
- Count partners: the one-fifth threshold is of the total number of partners.
- Gather evidence of "good reason" before applying: financial records, correspondence, filings.
- Be ready for a security demand; the amount will be as prescribed.
- Take advice on whether to apply to the Tribunal under s.43(1)(a) or directly to the Government under s.43(3)(a).
Practical points for the LLP
- If the LLP is on the other side, expect the Tribunal to look at the evidence presented. Keep records ready.
- Know that the inspector will be an individual; if a firm or company is named, the appointment would run against s.45.
Need help with an application?
Whether you are a partner seeking an investigation or an LLP responding to one, the evidence and the security are where applications are won or lost. Our dispute resolution team can prepare the application and the supporting evidence or help you respond.
Key takeaways
- A partners' application under s.43(1)(a) must be supported by such evidence as the Tribunal requires, to show good reason for the investigation (s.44).
- The Central Government may require the applicants to give security of the prescribed amount for the costs before appointing an inspector (s.44).
- No firm, body corporate or other association can be an inspector (s.45).
- The Act states no security amount; it is prescribed.
Read next
- Section 43: investigation of the affairs of an LLP
- Sections 46 and 47: inspector's powers
- Sections 53 and 54: expenses of investigation and report as evidence
- Investigation of affairs of LLP
Disclaimer: Based on the Limited Liability Partnership Act, 2008 as amended by the Limited Liability Partnership (Amendment) Act, 2021, as consulted on 1 October 2026. Forms, fees and procedure are set by the LLP Rules, 2009 as amended from time to time. This article is general information, not legal advice; check the official text before acting.