Dissolution Of Partnership Deepak Kumar

Dissolution of Partnership firm

Presented by Deepak Kumar Roll-37

Dissolution of firm Dissolution of firm:- It means complete breakdown of the relationship of partnership between all the partners of a firm. Dissolution of partnership:- Dissolution of partnership mean change the relation of partner.

Dissolution without the order of court 1. Dissolution by agreement:- (sec. 40) (a) with the consent of all the partner (b) in accordance with a contract between them.

2. Compulsory Dissolution :-(sec.41) By the happening of any events which makes it unlawful for the business.

3.Dissolution on the happening of certain contingencies:- (sec. 42)  The expiry of the term for which the firm was

constituted.  The death of a partner

4. Dissolution on notice of partnership-at-will (sec.43) :Where the partnership at will the firm may be dissolve by any partner giving notice in writing to all the other partner

Dissolution by court 1. Insanity:- Where the partner has become of

unsound mind, the court may dissolve the Firm. [sec.44(a)] 2. Permanent incapacity:- When a partner has become in any way permanently incapable of performing his duty as a partner the court may dissolve the firm. [sec.44(b)]

3. Misconduct [sec.44(c)] When a partner is guilty of misconduct and it affect the business, the court may dissolve the firm. 4.Persistent breach of agreement:-[sec.44(d)] When a partner come in wilful in matter relating to business of the firm, 5.Transfer of interest:-[sec.44(e) When a partner has in any way transfer the whole of it interest in the firm to the third party.

 6.Business working as a loss:-[sec.44(e)]

When the business is running only as a loss. 7.Any other ground:-[sec.44(f)] The court may dissolve a firm on any other ground like continuous quarrelling, always say lie with his partner.

CASE 1  X is the resident in India and Y is resident of

Pakistan, are partner. The firm is carrying on the importing and exporting commodity 1 and commodity 2 Case1-If the war breaks out between India and Pakistan. Case2-If the law is passed by which import and export of commodity 1 are prohibited. [sec.41]

Case 2  A and B are the partner of firm and after

some time A become unsound mind then B don’t want to partnership with the A then B complain in court for dissolute the firm.

[sec.44(a)]