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1 mark

In which of the following case court can order dissolution of a partnership firm.

  1. A
    On the death of a partner
  2. B
    On the expiry of term of partnership
  3. C
    When business cannot be carried on except at a loss.
  4. D
    When a partner become insolvent.

Solution & Step-by-step Explanation

Under Section 44 of the Indian Partnership Act, 1932, the court may order the dissolution of a firm on certain grounds. One explicit ground is when the business of the firm cannot be carried on save at a loss. On the other hand, death, insolvency, and expiry of term are categories that generally fall under dissolution upon happening of certain contingencies (Section 42) without mandatory intervention of the court.

Practice this question

Try it yourself before checking the explanation above.

In which of the following case court can order dissolution of a partnership firm.
A
On the death of a partner
B
On the expiry of term of partnership
C
When business cannot be carried on except at a loss.
D
When a partner become insolvent.

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