Dissolution of a partnership firm may be ordered by the court on the following grounds:
(A) when a partner becomes insane.
(B) when a partner becomes permanently incapable of performing his duties as partner.
(C) when a partner acts in good faith
(D) when it is regarded just and equitable by the court.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (D) only
Under the Partnership Act, a partner can ask the court to dissolve the firm on certain grounds, all of which make it unfair or impossible to carry on the partnership.
(A) when a partner becomes insane. Correct. Insanity of a partner is a ground for dissolution by court.
(B) when a partner becomes permanently incapable of performing his duties as partner. Correct. A partner who can never perform his duties again is a listed ground.
(C) when a partner acts in good faith Incorrect. Acting in good faith is what a partner is expected to do. The ground in the Act is the opposite: a partner guilty of misconduct that harms the business.
(D) when it is regarded just and equitable by the court. Correct. The court may dissolve the firm on any ground it finds just and equitable.
NCERT (2026-27 edition):
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