Question

On which of the following grounds the court may order a partnership firm to be dissolved?

Options

• When a partner becomes insane.

• When a partner becomes permanently incapable of performing his duties as a partner.

• Both When a partner becomes insane and When a partner becomes permanently incapable of performing his duties as a partner.

• None of the above

Answer 1

Both When a partner becomes insane and When a partner becomes permanently incapable of performing his duties as a partner.

Explanation:

Dissolution by Court: A partnership firm may be dissolved at the request of a partner on any of the following grounds:

1. when a partner becomes mad.
2. when a partner becomes permanently incapable of executing his duties as a partner.
3. when a partner commits misconduct that is likely to harm the firm's business.