Dissolution of the Partnership
Under the partnership Act a firm is dissolve with the following ways:
1. Dissolution by agreement
a firm may be dissolve with the consent of the all partners or in accordance with the contract between the partners.
2. Compulsory Dissolution
A firm is dissolved by the adjudication of all the partners or of all the partners but one as insolvent or by the happening of any event which makes it unlawful for the business of the firm to be carried on of for the partners to carry it on in partnership.
3. Dissolution on certain contingencies.
Subject to contract between the partners a firm is dissolve
(a) If constituted for fixed term by the expiry of that term
(b) If constituted to carry out one or more adventures or undertakings by the completion thereof.
(c) By the death of a partner
(d) By the adjudication of a partner as an insolvent.
4. Dissolution by Notice at will
(a) Where the partnership is at will the firm may be dissolved by any partner giving notice in writing to all the other partners of his intention to dissolve the firm.
The firm is dissolved as from the date mentioned in the notice as the date of dissolution or if no date is so mentioned as from the date of the communication of the notice.
5. Dissolution by the Court
Under section 44 of Partnership Act 1932 at the suit of a partner the court may dissolve a firm on any of the following ground as under;_
(a) That a partner has become unsound mind in which cases the suit may be brought as well by the next friend of the partner who has become of unsound minds as by any other partner.
(b) That a partner other than the partner suing has become in any way permanently incapable of performing his duties as partner.
(c) That a partner other than the partner suing is guilty of conduct which is likely to affect prejudicially the carrying on the business regards being had to the nature of the business.
(d) That a partner other then the partner suing willfully of persistently commits breach of agreement relating to the management of the affairs of the firm of the conduct of its business or otherwise so conducts himself in matters relating to the business that it is not reasonably practicable for the other partners to carry on the business in partnership with him.
(e) That a partner other than the partner suing has in any way transferred the whole of his interest in the firm to a third party or has allowed his share to be charged under provision of Rule 49 of Order XXI of the First Schedule to the Code of Civil Procedure 1908 or has allowed it to the sold in the recovery of arrears of land revenue of any dues recoverable as arrears of land revenue due by the partner.
(f) That the business of the firm cannot be carried on save at a loss.
(g) Any other gourd which renders it just and equitable that the firm should be dissolved.