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De-Criminalisation of Compoundable Offences under LLP: A Complete Guide
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De-Criminalisation of Compoundable Offences under LLP: A Complete Guide

  • Introduction
  • The term LLP or Limited Liability Partnership denotes an alternative corporate business format that offers benefits of a Private Limited Company and flexibility of a Partnership Firm. Further, it shall be significant to take into consideration that this business structure enjoys the benefit of Separate Legal Entity and Perpetual Succession.
  • Furthermore, the term LLP Agreement means the Magna Carta of the firm. It includes all the rules and regulations, activities, operations, management, profit sharing rations, obligations, etc., concerning the firm and the partners in it.
  • Also, to obtain LLP Registration in India, one needs to file an application under the provisions of the Limited Liability Partnership Act 2008.

  • Concept of De-Criminalisation of Compoundable Offences under LLP
  • The term De-criminalisation of Compoundable Offences under LLP means a process, which is based on the recommendations of CLC (Company Law Committee), headed by Mr Rajesh Verma, Company Affairs Secretary, Ministry of Corporate Affairs. Further, the said concept has followed the roots of Technical and Procedural Compoundable Offences under the provisions of the Companies Act 2013.
  • Also, the point to consider regarding the De-criminalisation of Compoundable Offences under LLP are as follows:
  • In total 12 Offences have been proposed to be decriminalised;
  • 1 provision, i.e., section 73, providing Criminal Liability has been proposed to be omitted;
  • Transfer of 12 Decriminalised Offences to IAM (In-House Adjudication Mechanism) to reduce the burden of routine cases on criminal courts;

  • Purpose of De-Criminalisation of Compoundable Offences under LLP
  • The main purpose behind the implementation of De-Criminalisation of Compoundable Offences under LLP can be summarised as:
  • To Encourage and Inspire Youth to take up Entrepreneurship;
  • To Remove the Fear of Criminal Prosecutions for Procedural Omissions, Non-substantive Minor, and Commissions during the normal course of business transactions;
  • To Eradicate the Criminality of Offence from Business Laws, wherein no ill intentions are involved;
  • To Ensure Ease of Doing Business for Law abiding LLPs;

  • Principles of De-Criminalisation of Compoundable Offences
  • The three main principles on which the concept of De-Criminalisation of Compoundable Offences under LLP has been formulated are as follows:

  • Principle 1
  • The offences of minor or less serious nature will now be shifted or transferred to the IAM (In-house Adjudication Mechanism) framework, instead of considering them as Criminal Offences.

  • Principle 2
  • The offences which are suitable to be dealt under some other laws, has now been proposed to be omitted from the Limited Liability Partnership Act 2008.

  • Principle 3
  • The occasions which include offence of serious nature, such as follows, will continued to be dealt with the existing provisions:
  • Fraud;
  • Intent to Deceive;
  • Injury to Public Justice;
  • Non-compliance of any Order or Direction passed by the Government Authorities;

  • Concepts Introduced for Promoting Ease of Doing Business
  • The concepts introduced for promoting the Ease of Doing Business are as follows:

  • Small Limited Liability Partnership
  • The government is seeking to implement a new class of LLP named “Small Limited Liability Partnership” or “Small LLP”. The benefits offered to a Small LLP are as follows:
  • Lesser Compliances;
  • Lesser Registration and Additional Fee;
  • Lesser Penalties in case of any default;
  • Also, it shall be significant to take into consideration that the feature of Lesser Compliance will enable the Micro and Small partnerships to get registered as LLP which has comparatively more organised structures.

  • Issuance of Non Convertible Debentures
  • It shall be considerate to take into the record that the Ministry of Corporate Affairs (MCA) has allowed LLPs to raise capital by way of issuing Non Convertible Debentures to the Investors, who are regulated either by RBI or SEBI or both. Further, such a permission will act as an alternative to Equity Participation.

  • The benefits of such an initiative are as follows:
  • It will Improve the Deeping of Debt Market;
  • It will Enhance the Capitalisation of LLPs;

  • Reduction in the Additional Fees

  • Reduction in the Additional Fees
  • MCA has decided to relax the additional fees levied on LLPs by amending the provisions of section 69 of the Limited Liability Partnership Act 2008. Further, the relaxation given in the levy of additional fees can be summarised as, the fee of Rs 100 charged on the delayed filing of documents and forms has been relaxed.
  • Also, the main benefit of this relaxation is that LLPs will now able to file their documents, returns, and records in a smooth manner, which will directly ensure updated registry for policy making and proper regulation.


  • A Trademark maybe cancelled for two main reasons:
  • If the trademark holder registered the identification mark without having any genuine intention of using it.
  • Not utilizing the trademark for five years after the precise date of registration or for three months prior to the application date for registration.


  • Entity that can apply for Cancellation of Trademark:
  • Anyone who feels wrong information at the time of registration of a trademark maybe request for cancellation.
  • If a trademark is no longer registered, that is, if it is not renewed after ten years from the date of registration, the Registrar of Trademarks may also cancel it on his own.
  • The registered proprietor may request the removal of the trademark from the register under Section 58 of the Trademark Act.m


  • Terms for cancellation of a registered Trademark:
  • A person who feels they have been wronged can ask to have their trademark cancelled either before or after five years of registration.


  • If a trademark is cancelled within five years
  • Misleading the population
  • Confuses employees within the company
  • Too much detail
  • No information is more than a geographical description
  • Not defended for at least three years by the applicant


  • After five years, a trademark maybe cancelled if
  • The brand is become overly generic (commonly used)
  • If the owner registered using false information
  • The logo features inappropriate elements
  • It is derogatory.


  • How to Cancel the Trademark Application in India?
  • If the applicant chooses to withdraw their trademark application voluntarily. It has been submitted online, and the Indian Trademark Registry has recorded its status as “withdrawn,” according to the trademark’s registrar.
  • The authorities will issue a notice to the involved parties, i.e., the owner of the proprietor of the registered trademark, when the cancellation application is made to either the Registrar or the Appellate Board.
  • Before the Registrar, the involved parties may submit counter statements in opposition to the application.
  • Both parties are given the opportunity to present their defences, and it is their responsibility to do so.
  • Both sides have the right to provide supporting documentation, and their claims will be heard.
  • The order will be issued following a thorough hearing and examination of the supporting documentation provided by both parties.
  • If the Registrar issues a cancellation order based on the cases put before him, he must carry it out by deleting the trademark from his register.
  • It is possible to appeal the Registrar’s decision before the Appellate Board.
  • If the application is directly before the Appellate Board, they shall adhere to the same process as civil court cases.
  • The procedure used in civil court is comparable to that used by the Registrar of Trademarks.
  • If the Appellate Board issued a cancellation order, notice of the cancellation of the trademark must be given to the Registrar.
  • The decision made by the Appellate Board maybe challenged in a writ petition to the High Court.


  • Conclusion

    • The subject Trademark legislation also provides for cancellation of the trademark application, and the authority held accountable is also represented by their procedural rules. When requesting such a cancellation, the applicant could do so either through the trademark registration process or through an appeals to board application.
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