A partner has a right to seek for the dissolution of a partnership. Explain the circumstances under which the court will generally order the dissolution of a partnership.

ANSWER

Under section 39 of the Partnership Act, a court may order the dissolution of a partnership on the following grounds:

If a partner has become a lunatic or is permanently of unsound mind
If a partner is continuously guilty of willful breach of the partnership agreement
If the firm’s business can only be carried on at a loss
If a partner is permanently incapable of discharging his obligations as a partner.
If a partner has conducted himself in a matter prejudicial to the firm and his continued association is likely to bring the firms name into disrepute.
If it is just and equitable that the partnership be dissolved.