At the suit of a partner, the court may order a partnership firm to be dissolved on 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.

Choose the correct answer from the options given below:

A, B, C & D

Correct answer: Option (3) → A, B, C & D

Concept: Section 44 of the Indian Partnership Act, 1932 lists the grounds on which the court may order dissolution of a firm at a partner’s suit – discussed under ‘Dissolution by Court’ in Dissolution of Partnership Firm.

A partner becoming insane (A), becoming permanently incapable of performing his duties (B), being guilty of misconduct likely to affect the business (C), and persistently committing breach of the partnership agreement (D) are ALL valid grounds for dissolution by the court. Hence all four – A, B, C & D.