Which of the following event take place in the case of dissolution of a partnership firm

Dissolution of a Partnership Firm means the complete termination of the partnership relationship and the business itself. This is different from dissolution of partnership (where only the relationship changes but the firm continues).

Let me examine each option:

Option 1: Court does not intervene - Incorrect. Courts can order dissolution under specific circumstances like insanity of a partner, permanent incapacity, persistent breach of agreement, or partner's conduct prejudicial to the business.

Option 2: Business is not terminated - Incorrect. When a firm dissolves, the business operations completely cease. The firm stops carrying on its activities and winds up its affairs. This is a key characteristic that distinguishes firm dissolution from partnership dissolution.

Option 3: Economic relations between the partners comes to an end - Correct. Upon dissolution of the firm, all economic and business relationships between partners terminate permanently. After settling accounts and distributing assets, partners have no further obligations or rights against each other in relation to the firm.

Option 4: Assets and Liabilities are revalued - This is characteristic of reconstitution (admission, retirement, or death of a partner), not dissolution. During dissolution, assets are realized (converted to cash) and liabilities are paid off, but revaluation is not the defining event.

The fundamental distinction is that dissolution of a firm brings complete closure to both the business and the partnership relationship. All partners' economic ties related to the firm come to an end after final settlement.