Partners of LLP Firm Cannot be Made Personally Liable Under Arbitral Award: Bombay High Court

The Bombay High Court has clarified that the partners of a Limited Liability Partnership firm cannot be held personally liable under an arbitral award.

The decision came in an appeal where an LLP was ordered to pay ₹88 lakh of unpaid dues to a company by an arbitral tribunal.

The Court held that the tribunal had erred in fastening joint and several liability on the designated partners of the firm and struck down this portion of the award.

Additionally, it was also held that arbitrators need not be lawyers and that their decisions cannot be taken lightly merely because their reasoning is not like that of a trained legal mind.

[Proteus Ventures LLP v Archilab Designs]