court may order for dissolution of the firm. Under Section 44 of the Act,the court may dissolve the firm on the following grounds :
When.a partner becomes insane, the court may order to dissolve the firm.The suit can be filed by any of the other partners or even by any friend of the insane partner.
ii. Permanent incapacity:
When a partner becomes permanently incapable of doing his duties as apartner, the court may dissolve the firm. The suit for dissolution must befiled by a partner other than the incapacitated partner.
When a partner, other than the partner suing is guilty of misconduct andsuch misconduct is likely to affect the carrying on of the business, the courtmay dissolve the firm. The misconduct may be outside the business(punishment for an offence, adultery of a partner etc.
iv. Persistent breach of agreement:
When a partner persistently or willfully commits breach of agreement orconducts himself in such a manner that it is impossible on the part of otherpartners to carry on the business with him, the court may dissolve the firm.Maintaining wrong accounts, taking away the books of accounts,continuous quarreling with other partners are good grounds.
v. Transfer of interest:
When a partner transfers his whole interest in the firm to a third party orall his shares are sold or attached by the court under a decree, the courtmay dissolve the firm.
vi. Continuous losses: