Sections 46 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.
Once the Central Government has appointed an inspector under section 43, sections 46 and 47 say how far he can go. Section 46 lets him investigate related entities and present or former partners, with the Government's prior approval. Section 47 puts a duty on designated partners and partners to produce books and papers, lets the inspector keep them for thirty days and examine people on oath, and provides a fine for those who refuse. If you are on the receiving end of an inspector's request, our dispute resolution team can help you respond.
An inspector may investigate an entity associated with the LLP, past or present, or any present or former partner or designated partner, but only with the prior approval of the Central Government, which must first give the entity or person a reasonable opportunity to show cause (s.46). Designated partners and partners must preserve and produce books and papers and give the inspector reasonable assistance (s.47(1)). The inspector may keep documents for thirty days and examine on oath (s.47(3), (4)). Refusal without reasonable cause is punishable with fine of Rs 2,000 to Rs 25,000, plus Rs 50 to Rs 500 for each day after the first (s.47(5)).
Section 46: related entities and partners
Section 46(1): the power
If an inspector appointed to investigate an LLP thinks it necessary for his investigation to investigate also the affairs of:
- an entity which has been associated in the past or is presently associated with the LLP, or
- any present or former partner or designated partner of the LLP,
he has the power to do so and shall report on the affairs of that entity, partner or designated partner so far as the results are relevant to the investigation of the LLP.
The words "associated" and "entity" are not defined in the section. The test is necessity for the investigation, as the inspector thinks it, and relevance in the report.
Section 46(2): prior approval and show cause
The inspector shall not exercise this power without obtaining the prior approval of the Central Government. The proviso adds that before approving, the Government shall give the entity, partner or designated partner a reasonable opportunity to show cause why approval should not be accorded.
So a related entity or a former partner has a right to be heard before the investigation is extended to them. This is a safeguard that appears in the text.
Section 47: production of documents and evidence
Section 47(1): duty to produce
It is the duty of the designated partner and partners of the LLP:
- (a) to preserve and produce before an inspector, or a person authorised by him, with the previous approval of the Central Government, books and papers of, or relating to, the LLP or, as the case may be, the other entity, which are in their custody or power; and
- (b) to give the inspector all assistance in connection with the investigation which they are reasonably able to give.
A note on the text: clause (b) is only partly legible in the copy of the Act consulted. The words above are a summary of its apparent sense, and the exact wording should be checked in the official text.
Section 47(2): other entities
The inspector may, with the previous approval of the Central Government, require any entity other than those in sub-section (1) to furnish information or produce books and papers, if that is relevant or necessary for his investigation.
Section 47(3): custody for thirty days
The inspector may keep in his custody any books and papers produced under sub-section (1) or (2) for thirty days, and shall then return them to the LLP, other entity or individual. Two provisos:
- He may call for them again if they are needed.
- If certified copies of books and papers produced under sub-section (2) are furnished to him, he shall return the originals.
Section 47(4): examination on oath
An inspector may examine on oath:
- (a) any of the persons referred to in sub-section (1) (designated partner and partners);
- (b) with the previous approval of the Central Government, any other person in relation to the affairs of the LLP or any other entity; and
- (c) may administer an oath and for that purpose require any of those persons to appear before him personally.
Section 47(5): refusal
A person who fails without reasonable cause or refuses:
| Clause | Default |
|---|---|
| (a) | To produce before an inspector or authorised person any book or paper which it is his duty to produce under s.47(1) or (2) |
| (b) | To furnish any information which it is his duty under sub-section (2) to furnish |
| (c) | To appear before the inspector personally when required under sub-section (4), or to answer any question put to him under it |
| (d) | To sign the notes of any examination |
is punishable with fine of not less than Rs 2,000 but which may extend to Rs 25,000, and with a further fine of not less than Rs 50 but which may extend to Rs 500 for every day after the first day on which the default continues.
Section 47(6): notes of examination
Notes of an examination under oath shall be taken down in writing and signed by the person examined; a copy shall be given to him and the notes may thereafter be used as evidence by the inspector.
How the powers fit together
| Power | Who is affected | Approval of the Central Government |
|---|---|---|
| Investigate related entities and present or former partners (s.46) | Associated entities, partners, designated partners | Prior approval, after show cause |
| Call for books from designated partners and partners (s.47(1)) | Designated partner and partners | Previous approval for the authorised person route |
| Call for information or books from other entities (s.47(2)) | Any other entity | Previous approval |
| Keep books for 30 days (s.47(3)) | LLP, entity or individual | Not stated |
| Examine on oath (s.47(4)) | Persons in s.47(1) | Not needed for them; needed for any other person |
Example. An inspector investigating Khanna Infra LLP finds that a supplier company, owned by a former partner's family, received large payments. He seeks the Central Government's prior approval to look into the supplier's affairs. The Government gives the supplier and the former partner a chance to show cause, then approves. The inspector requires the supplier to produce its ledgers under s.47(2), keeps them for thirty days and returns them. A former partner who declines without reasonable cause to appear when required under s.47(4) faces the fine in s.47(5).
Practical points
- Preserve all books and papers once an investigation is announced. s.47(1)(a) makes preservation a duty.
- Check that the inspector or authorised person has the Government's approval where the section requires it.
- Ask for a copy of the notes of any examination, which s.47(6) gives you.
- Seek advice before refusing anything; the fine accrues daily after the first day.
- Searches and seizure are dealt with in section 48.
Need help responding to an inspector?
An inspector's requisition carries daily fines for refusal, and what you say on oath can be used as evidence. Our dispute resolution team can prepare you for the examination, check the approvals and organise the documents.
Key takeaways
- Related entities and present or former partners can be investigated only with the Government's prior approval and after a show-cause opportunity (s.46).
- Designated partners and partners must preserve and produce books and papers (s.47(1)).
- The inspector may keep documents thirty days and examine on oath (s.47(3), (4)).
- Refusal without reasonable cause: fine of Rs 2,000 to Rs 25,000 plus Rs 50 to Rs 500 per day after the first (s.47(5)).
- Notes of examination are signed, copied to the person and usable as evidence (s.47(6)).
Read next
- Sections 44 and 45: application for investigation and who cannot be inspector
- Sections 48 and 49: seizure of documents and inspector's report
- Section 43: investigation of the affairs of an LLP
- 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.