Liquidator expense priority: tribunal approved advances and creditor or partner payments are recoupable ahead of LLP debts. If an LLP under winding up has no assets, the Liquidator may, with Tribunal leave, incur necessary expenses from a permanent advance or fund provided by the Central Government or Tribunal, and such expenses must be recouped from the LLP's assets in priority to its debts; advances by petitioning or other creditors or partners for preliminary expenses may be used by the Liquidator and shall be repaid out of the LLP's assets in priority to its debts.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Liquidator expense priority: tribunal approved advances and creditor or partner payments are recoupable ahead of LLP debts.
If an LLP under winding up has no assets, the Liquidator may, with Tribunal leave, incur necessary expenses from a permanent advance or fund provided by the Central Government or Tribunal, and such expenses must be recouped from the LLP's assets in priority to its debts; advances by petitioning or other creditors or partners for preliminary expenses may be used by the Liquidator and shall be repaid out of the LLP's assets in priority to its debts.
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