Question

State any one occasion for the dissolution of the firm on court's orders.

Answer 1

When the partnership firm ceases to exist, the partnership firm is said to be dissolved. Section 39 of the Indian partnership act, 1932 lays down that, "The dissolution of partnership between all partners of a firm is called a dissolution of the firm."

There are various modes of dissolution of a firm one of them is "Dissolution of the firm on court's order. Court can order for dissolution of a firm at the suit of a partner on any of the following grounds:

1. Insanity of partner

2. Permanent incapacity of a partner.

3. Misconduct of a partner.

4. Willful or persistent breach of agreement by partner.

5. Transfer of interest by a partner.

6. Business carried on at a loss.

7. Any other just and equitable ground.