Question

Under section $44$ of the Partnership Act, which of these cannot be a ground for dissolution of a firm.

• A. Continued losses
• B. Persistent breach of agreement
• C. Just and Equitable
• D. Insolvency of any partner

Answer 1

The correct option is D Insolvency of any partner

According to Section 44, continued losses, willfully or persistent breach of contract and any other reason that court may find just and equitable can be ground for dissolution of firm.
Under section 41 of Indian Partnership Act, insolvency becomes basis of dissolution of firm in case all the partners become insolvent or all except one partner become insolvent. Insolvency of one partner does not become ground for dissolution of firm.