CUET Preparation Today
Dissolution by Court happens: |
Death of a partner With the consent of all partners When a partner becomes insane When the adjudication of a partner as an insolvent |
When a partner becomes insane |
The correct answer is Option (3) → When a partner becomes insane Dissolution by Court: At the suit of a partner, the court may order a partnership firm to be dissolved on any of the following grounds: (a) when a partner becomes insane; (b) when a partner becomes permanently incapable of performing his duties as a partner; (c) when a partner is guilty of misconduct which is likely to adversely affect the business of the firm; (d) when a partner persistently commits breach of partnership agreement; (e) when a partner has transferred the whole of his interest in the firm to a third party; (f) when the business of the firm cannot be carried on except at a loss; or (g) when, on any ground, the court regards dissolution to be just and equitable. |
