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)]