What is true about the dissolution of the partnership firm by the court?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- All of the above.
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.
(g) when, on any ground, the court regards dissolution to be just and equitable.
*OPTION 1 IS TRUE AS 'Court cannot dissolve a partnership firm on its own', court can order on the suit of a partner.