Modes of Dissolution of Partnership Firm
Modes of Dissolution of the Partnership firm
A
partnership firm can be dissolved in any of the two ways: A) By the
order of the court; B) Without the intervention of the court.A) By the order of the court:
A partner may apply to the court for getting the firm dissolved. On getting such application by any of the partner the court may proceed to order the dissolution of the firm in the following circumstances:
1) If any of the partner becomes of unsound mind
2) If a partner, other than the partner filing the suit is guilty of intentionally and persistently committing a breach of the partnership agreement.
3) If a partner, other than the partner filing the suit has transferred whole of his interest in the firm to a third party without the consent of the other partners.
4) If a partner, other than the partner filing the suit is guilty iof misconduct.
5) If a partner, other than the partner filing the suit has become disabled to perform his duties as a partner.
6) If the court is satisfied that the business of the frim cannot be carried on except a loss.
7) If the court considers it just and equitable to dissolve the firm due to some other reasons.
B) Without the intervention of the court.
1) If all the partners are willing and hereby agree to dissolve the firm.
2) In the following circumstances:
a) On the death of any partner.
b) If any partner becomes insolvent.
c) On the expiry of the duration of the firm.
d) On the completion of the venture.