Question

State any six situation in which the court may order to dissolve a partnership firm.

Answer 1

A court may order to dissolve the firm if a suit is filed by a partner under section 44 of the Indian Partnership Act, 1932 if:

(a) A partner becomes insane;

(b) A partner becomes incapable of doing the business;

(c) A partner transfers his interests to a third party;

(d) A partner commits a breach of interest wilfully;

(e) The business cannot be continued;

(f) A partner's conduct affects the functioning of the business.