DISSOLUTION OF PARTNERSHIP FIRM

MEANING: Dissolution of partnership means discontinuance of relationship between partners.

Dissolution without the interference of the

courtDissolution by the order

of court

Conditions of dissolution of firm

Dissolution without the interference of the court

Dissolution by

agreement

Compulsory

dissolution

Dissolution on the happening

of certain events

Dissolution by Notice

Expiry of the period

Death of

partner

Insolvency of a partner

Fulfillment of the object for

which the partner ship

firm was formed

Dissolution by the agreement

When all the partner of the firm agree to dissolve the partnership firm

business, it is called dissolution by agreement

Compulsory dissolution

There is compulsory dissolution of partnership firm under the following circumstance:

By the adjudication of all partners or all except one becoming insolvent. Or By the business of the firm becoming unlawful due to the happening of any such event.

Dissolution on the happening of certain events

On the expiry of the period for which a partner ship firm was formed

On the insolvency of a partner

On the death of partner

On the fulfillment of the object for which the partnership firm was formed

Dissolution by Notice

When the duration of the partnership business is not fixed and 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.

Dissolution by the order of court

Permanent incapacity

Continuous lossInsanit

yJust and

equitable ground

Persistent disregard of partnership

agreement by a partner

Misconduct

Transfer of

interest

InsanityIf a partner ( not a sleeping partners has become of unsound mind, then court may allow dissolution of firm

Permanent incapacityIf a partner ( not a sleeping partners) has

become permanently incapable of performing of his duties as partner, then

court may allow dissolution of firm

Misconduct of partners

When any partner is guilty of any misconduct which is likely to adversely affect the carrying on business the court may allow dissolution of firm.

Persistent disregard of partnership agreement by a

partnerWhen a partner willfully or persistently commits breech of agreement which regard to matters relating to the business of the firm , any other partner may apply to court for dissolution of firm

Continuous lossWhen a firm is working in

continuous loss, any partner may apply to court for dissolution of firm.

Transfer of interest

When a partner has transferred the whole of his interest in the firm to a third party then any other partner may apply to court for dissolution.

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