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CS Executive · Setting Up of Business, Industrial and Labour Laws · Limited Liability Partnership

Meera and Kabir are partners in Sundaram Traders LLP. Kabir, while carrying on the LLP's business, negligently gives a customer wrong storage advice, causing the customer a loss. As regards personal liability, which statement is correct?

Kabir remains personally liable for his own wrongful act, while Meera is not personally liable for it. An LLP partner is shielded from another partner's wrongdoing, but the shield does not cover his own wrongful act or omission. The LLP is also liable for the act done in its business.

  1. AMeera is personally liable for Kabir's wrongful act merely because she is a partner
  2. BKabir is personally liable for his own wrongful act, and Meera is not personally liable for itCorrect
  3. CNeither partner can ever be personally liable for any wrongful act
  4. DOnly the LLP is liable and Kabir has no personal liability even for his own wrong

Explanation

A partner is not personally liable for an LLP obligation merely by being a partner, and a partner is not liable for another partner's wrongful act. However, a partner stays personally liable for his own wrongful act or omission. So Kabir is liable personally, while Meera is not. The LLP is also liable for his wrong done in the course of its business.

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