Chapter XIV - Miscellaneous
Section 74
Section 74: general penalties
Section 74 supplies a residual penalty only where no penalty or punishment is provided elsewhere for the contravention.
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Need advice on Section 74?
This article is for general information. Refer to the Limited Liability Partnership Act, 2008 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
If a limited liability partnership or any partner or any designated partner or any other person contravenes any of the provisions of this Act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act, the limited liability partnership or any partner or any designated partner or any other person, who is in the default, shall be liable to a penalty of five thousand rupees and in case of a continuing contravention with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of one lakh rupees.
Key takeaways
Core rule
Section 74 supplies a residual penalty only where no penalty or punishment is provided elsewhere for the contravention.
Practical review
Identify the breached provision or condition
How the provision works
Section 74 supplies a residual penalty only where no penalty or punishment is provided elsewhere for the contravention.
Practical steps
Identify the breached provision or condition; check for a specific penalty elsewhere; calculate the ₹5,000 base and any ₹100 daily amount within the ₹1 lakh cap.
Practical preparation
Check these statutory points against the record.
- Identify the breached provision or condition
- Check for a specific penalty elsewhere
- Calculate the ₹5,000 base and any ₹100 daily amount within the ₹1 lakh cap.
Practical checklist
Do
- Identify the breached provision or condition
- Check for a specific penalty elsewhere
- Calculate the ₹5,000 base and any ₹100 daily amount within the ₹1 lakh cap.
Avoid
- Do not apply this provision without checking its stated conditions and cross-references.
Illustrative example
Hypothetical: general penalties
A designated partner breaches a rule that has no separate penalty provision.
Step 1
Verify the rule and default
Step 2
Search the Act for a specific sanction
Step 3
Apply section 74 only if none exists.
Outcome
- The residual penalty can then be considered under the statutory conditions.
Glossary
- residual penalty
- A penalty applying where the Act provides no other penalty or punishment for the default.
Frequently asked questions
What does section 74 provide?
Section 74 supplies a residual penalty only where no penalty or punishment is provided elsewhere for the contravention.
What should be checked?
Identify the breached provision or condition; check for a specific penalty elsewhere; calculate the ₹5,000 base and any ₹100 daily amount within the ₹1 lakh cap.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026