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In which of the following cases can a court order the 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 becomes insolvent.

Solution & Step-by-step Explanation

Under Section 44 of the Indian Partnership Act, 1932, a court may order the dissolution of a firm on certain grounds, one of which is when the business of the firm cannot be carried on except at a loss. The other options (death, expiry of term, insolvency) generally lead to dissolution by operation of law or contract without mandatory intervention of the court, unless contested.

Practice this question

Try it yourself before checking the explanation above.

In which of the following cases can a court order the 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 becomes insolvent.

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