A, a partner in a firm, transfers the whole of his interest in the firm to a third party. The court may
Under section 44(e) of the Indian Partnership Act, 1932, a partner’s transfer of the whole interest in the firm to a third party is a ground for judicial dissolution at the…
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A, a partner in a firm, transfers the whole of his interest in the firm to a third party. The court may
Answer and explanation
Correct answer B
Under section 44(e) of the Indian Partnership Act, 1932, a partner’s transfer of the whole interest in the firm to a third party is a ground for judicial dissolution at the suit of another partner. The transferring partner cannot invoke that transfer as this statutory ground for his own suit. The court acts on a partner’s suit rather than initiating dissolution on its own.
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