Match List-I with List-II regarding the modes of dissolution of a partnership firm:List-IList-II(A) Dissolution of firm by agreement(I) When a partner becomes insane(B) Compulsory dissolution of firm(II) With the consent of all partners(C) Dissolution of firm by notice(III) When business of a firm becomes illegal(D) Dissolution of firm by Court(IV) At the request of any one partnerChoose the correct answer from the options given below:
- A(A) - (II), (B) - (III), (C) - (I), (D) - (IV)
- B(A) - (II), (B) - (III), (C) - (IV), (D) - (I)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Let us review the legal paths to dissolution under the Indian Partnership Act, 1932:(A) Dissolution by agreement (Section 40): Occurs when a firm is wound up with the unanimous consent of all partners. Maps to (II).(B) Compulsory dissolution (Section 41): Happens automatically if the firm's core business activities are declared illegal. Maps to (III).(C) Dissolution by notice (Section 43): In a partnership-at-will, any single partner can dissolve the firm by giving written notice to the other partners. Maps to (IV).(D) Dissolution by Court (Section 44): A court can order a firm to be dissolved if a partner is legally declared insane or of unsound mind. Maps to (I).This gives the sequence: (A) - (II), (B) - (III), (C) - (IV), (D) - (I).