Circumstances under which the court will generally order the dissolution of a partnership

Under section 39 of the Partnership Act, a court may order the dissolution of a partnership on the following grounds:

  1. If a partner has become a lunatic or is permanently of unsound mind
  2. If a partner is continuously guilty of willful breach of the partnership agreement
  3. If the firm’s business can only be carried on at a loss
  4. If a partner is permanently incapable of discharging his obligations as a partner.
  5. If a partner has conducted himself in a matter prejudicial to the firm and his continued association is likely to bring the firms name into disrepute.
  6. If it is just and equitable that the partnership be dissolved.

CPA Revision kits and past papers with answers

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