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mediumMCQCUET Accountancy 2022 15 July Shift 22026Accountancy
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A Court may not order for the dissolution of a partnership firm out of which of the following grounds:

  1. A
    When a partner become insane
  2. B
    When a partner becomes permanently incapable of performing his duties as a partner
  3. C
    When the business of the firm cannot be carried on except at a loss
  4. D
    On the death of a partner

Solution & Step-by-step Explanation

On the death of a partner, the dissolution happens automatically or by agreement under Section 42 of the Indian Partnership Act, 1932 (Dissolution on happening of certain contingencies), unless otherwise agreed. It does not require a lawsuit intervention or court mandate order to dissolve, unlike cases of insanity, permanent incapacity, or continuous loss.

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Try it yourself before checking the explanation above.

A Court may not order for the dissolution of a partnership firm out of which of the following grounds:
A
When a partner become insane
B
When a partner becomes permanently incapable of performing his duties as a partner
C
When the business of the firm cannot be carried on except at a loss
D
On the death of a partner

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