The Court may order a partnership firm to be dissolved in which of the following case?

Under the Indian Partnership Act, 1932, there are different modes of dissolution of a partnership firm. Some dissolutions happen automatically, while others require a court order.

Automatic Dissolution (no court order needed):

• When business becomes illegal → The partnership dissolves automatically by operation of law
• On death of a partner → Automatically dissolves (unless partnership deed states otherwise)
• On expiry of the term → Dissolves automatically when the agreed period ends

Dissolution by Court Order (Section 44):

A partner can file a suit for dissolution, and the court may order dissolution in the following cases:

• When a partner becomes of unsound mind (insane)
• When a partner becomes permanently incapable of performing duties
• When a partner is guilty of misconduct affecting the business
• When a partner persistently breaches the partnership agreement
• When a partner transfers their entire interest to a third party
• When the business can only be carried on at a loss
• When the court considers it just and equitable to dissolve

In the given options, when a partner becomes insane, any other partner has the right to approach the court seeking dissolution. The court then may order the dissolution based on the circumstances. This is a discretionary power of the court, unlike the other options which result in automatic dissolution without requiring judicial intervention.