The Karnataka High Court has passed interim orders in favour of Neil Patel Digital LLC (NPD LLC) in a case concerning serious allegations of breach of a Limited Liability Partnership (LLP) Agreement. The dispute, brought under Section 9 of the Arbitration and Conciliation Act, 1996, came before Justice Suraj Govindaraj, who granted multiple ex-parte injunctions to safeguard the assets and operations of the LLP.
According to the petition filed by NPD LLC, Respondent No. 1, Pradeep Kumar Rajarathinam, was accused of violating several clauses of the LLP agreement. One of the most significant allegations involved the unauthorized transfer of funds exceeding ₹2.5 lakhs from the LLP’s bank account—an action that breached Clause 15.1H of the agreement. The Court noted that the account statements revealed transactions in excess of the prescribed limit.
"There are serious allegations against respondent No.1 as regards siphoning of nearly ₹7.9 crores," stated Justice Suraj Govindaraj. These activities were said to have taken place in clear violation of multiple obligations within the LLP agreement, which also included restrictions on competing businesses, appointment of key personnel, and introduction of new partners.
After examining the facts presented, the Court passed an order restraining Respondent No. 1 from transferring any funds from the LLP’s account held with the Respondent Bank (Respondent No. 2), or dealing in any manner with the physical and intangible assets of the LLP.
Respondent No.1 is restrained from in any manner dealing with alienating, encumbering any of the physical or non-physical intangible assets of Neil Patel Digital LLP, the court ordered, pending the outcome of the current petition.
Additionally, the Court directed the Bank (Respondent No. 2) not to act upon any instructions from Respondent No. 1 in relation to fund transfers.
To inform the public, the petitioner was allowed to publish a public notice regarding the court’s order. The judge further specified that any transaction made by Respondent No. 1 after the issuance of this order would be subject to the final decision of the case.
"The petitioner is also permitted to take out a public notice about the above order in the concerned newspaper so that the general public are put on notice," the order stated.
The Court also laid down administrative directions including furnishing copies of the petition to the counsel for Respondent No. 2 and warned that failure to comply with certain procedural steps would result in automatic vacation of the interim order.
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This matter is next scheduled to be heard on June 12, 2025.
Case Title: Neil Patel Digital LLC vs. Pradeep Kumar Rajarathinam
Case Number: AP.IM 4/2025 (KAHC010291822025)
Date of Order: April 24, 2025
