Which amongst the following is not a ground for dissolution of a partnership firm on the happening of certain contingencies?
- AIf constituted for a fixed term, by the expiry of that term.
- BWhen a partner becomes insane
- CBy death of a partner
- DBy adjudication of a partner as an insolvent.
Solution & Step-by-step Explanation
According to the Indian Partnership Act, 1932:Expiry of term (A), Death of a partner (C), and Insolvency of a partner (D) are listed under Section 42 as dissolution on the happening of certain contingencies (unless there is a contract to the contrary).When a partner becomes insane (B) is not automatic; it is a ground where a suit must be filed in court for dissolution under Section 44 (Dissolution by Court).