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Which of these events is a ground on which the court may dissolve a firm under section 44 of the Indian Partnership Act, 1932, rather than one that dissolves it without a court order?

Question and options

Which of these events is a ground on which the court may dissolve a firm under section 44 of the Indian Partnership Act, 1932, rather than one that dissolves it without a court order?

  1. The fixed term of the partnership has expired

  2. A partner has become of unsound mind

  3. A partner has been adjudicated an insolvent

  4. A partner has died

Answer and explanation

Correct answer: B - A partner has become of unsound mind

Section 44(a) of the Indian Partnership Act, 1932 lets the court dissolve a firm, on a suit by a partner or the next friend, where a partner has become of unsound mind. The other events are contingencies under section 42 on which a firm is dissolved, subject to contract, without any court order: expiry of the term, death and adjudication of a partner as an insolvent.

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