Dissolution of a partnership firm may be ordered by the court on the following grounds:(A) when a partner becomes insane.(B) when a partner becomes permanently incapable of performing his duties as partner.(C) when a partner acts in good faith(D) when it is regarded just and equitable by the court.Choose the correct answer from the options given below:
- A(A) and (D) only
- B(A), (B) and (D) only
- C(D) only
- D(A), (B), (C) and (D)
Solution & Step-by-step Explanation
Under Section 44 of the Indian Partnership Act, 1932, a court can order dissolution if a partner is of unsound mind (insane), permanently incapable, guilty of misconduct, or when it is just and equitable. Acting in good faith is a positive trait and cannot be a ground for court-ordered dissolution. Hence, (A), (B), and (D) are correct.