At the suit of a partner, the court may order a partnership firm to be dissolved on which of the following ground?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → When a partner becomes insane
At the suit of a partner, the court may order a firm to be dissolved on certain grounds laid down in the Partnership Act. A partner becoming insane is one of them. The other options are grounds from the same list with one word turned around.
Why the other options are incorrect
Option (1) When the business of the firm cannot be carried on except at a profit — Incorrect. The ground is that the business cannot be carried on except at a loss. A business that can run only at a profit gives no reason to close it.
Option (3) When a partner is not guilty of misconduct which is likely to adversely affect the business of the firm — Incorrect. The ground is a partner who is guilty of such misconduct; the word “not” reverses it.
Option (4) When a partner persistently does not commit breach of partnership agreement — Incorrect. The ground is a partner who persistently commits breach of the agreement. NTA added one small word to a true ground and made it false. Read every word before you mark the answer.
NCERT (2026-27 edition):
|
