Recently the IPO has issued the new computer related guidelines (CRI) for examine the Patent application in India. The 2016 CRI Guidelines reset the clock to the position prior to 2015 when the 2015 guidelines were issued, with the caveat that the 2016 CRI guidelines are much clearer and provide clear cut procedures and examples that deny patentability to Computer Related Inventions. These guidelines ensure that India's position is now similar to the stand taken by United States and Europe while determining patentability for computer related inventions. India had the patent law in place correctly from the beginning, and ventures to apply law from other jursidictions was ill conceived
The Central Government has issued General Circular No. 2/2016 [F.No.1/13/2012 CL-V], dated 15th January 2016. The present circular has referred to General Circular No. 13/2013, dated 29th July 2013, wherein it had clarified that as per section 5 of LLP Act, 2008, only an individual or body corporate may be a partner in a Limited Liability Partnership. Further, it provided that a HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008. Therefore, a HUF or its karta cannot become designated partner in LLP.
It is to be noted that the earlier circular had only prohibited the HUF or Karta to be a designated partner which would imply an assumption that a HUF or Karta can be a partner in LLP.
Please note that a "partner", in relation to a limited liability partnership, means any person who becomes a partner in the limited liability partnership in accordance with the limited liability partnership agreement. Also, note that every LLP is required to have at least two Designated Partners who shall be individuals and at least one of the Designated Partners shall be a resident of India. "Designated Partners" shall also be accountable for regulatory and legal compliances, besides their liability as partners, per-se.
Since the earlier circular did not mention anything about a partner, the present circular clarifies that a HUF or its Karta can neither become a partner nor a designated partner in LLP.
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