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Question

In which of the following circumstances a firm may be dissolved by the court under Partnership Act.

A
Insanity
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B
Marriage of a partner
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C
Death of a partner
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D
Temporary illness of a partner
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Solution

The correct option is A Insanity
According to Section 44 of Indian Partnership Act, 1932, when a partner becomes of unsound mind and is unable to continue further then other partner can suit in the court for dissolution. Insanity can be a ground for dissolution. Marriage of a partner does not affect the working of partnership. So it can not be a ground for dissolution. Death of a partner does not result in dissolution of firm because remaining partner can continue the business.

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