Question

What are the suggestion for dissolution of partnership firm??

Answer 1

Dissolution of a Partnership firm may be achieved in the following ways:

• Dissolution without the intervention of the Court.

• Dissolution by Court. 

Dissolution without the intervention of the Court.
1. By Agreement (S.40): The partnership firm can be dissolved if agreed by all partners whether the partnership is at will or for a fixed duration. A partnership can be dissolved following the terms of the Partnership Deed or  can also be dissolved with a separate agreement.
2. Compulsory Dissolution (Sec.41):  The partnership firm can be dissolved if the partners become insolvent or unlawful.

3. Dissolution on the happening of contingent event (S.42) : A firm may be dissolved on the happening of any of the following contingent event: such as - Expiry of Fixed Period,  Death of Partner, Insolvency of Partner, Resignation of Partner.

4. Dissolution by notice (S.43): a partner can  be dissolve by giving written notice of dissolution to his other partners properly signed by him, in the case of partnership at will.

Dissolution by Court:  Can be dissolved in the following cases. Insanity of Partner, Incapacity of Partner, Misconduct of Partner,  Constant breach of agreement by partner, Transfer of Interest, Continuous Losses,Just and Equitable.