Licence to manufacture car granted in the name of Partnership Firm is cancelled. Under the Indian…

Under section 41(b) of the Indian Partnership Act, a firm is dissolved compulsorily by the happening of any event that makes it unlawful for the business of the firm to be carried on. Cancellation of the licence to manufacture cars makes the firm's business unlawful, so the dissolution is "compulsory", not dissolution at will or by mutual consent of the partners.