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Under which of the following cases, the Court can order the dissolution of a partnership firm?

(A) When a partner persistently commits breach of partnership agreement.

(B) When a partner has transferred the whole of his interest in the firm to a third party.

(C) By the death of a partner.

(D) When the business of the firm cannot be carried on except at a loss.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

Section 44 lists the grounds on which a court may order dissolution. Persistent breach of the agreement (A), transfer of a partner's entire interest to an outsider (B), and a business that can only be run at a loss (D) are all statutory grounds.

Death of a partner (C) causes dissolution by operation of law automatically, so no court order is involved. Hence (A), (B) and (D) only.

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