Amendment status not verified — confirm the current text below against the official source.
Dissolution by the Court. At the suit of a partner, the Court may dissolve a firm on any of the following grounds, namely : That a partner has become of unsound mind, in which case the suit may be brought as well by the next friend of the partner who has become of unsound mind as by any other partner. That a partner, other than the partner suing, has become in any way permanently incapable of performing his duties as partner. that a partner, other than the partner suing, is guilty of conduct which is likely to affect prejudicially the carrying on of the business, regard being had to the nature of the business. that a partner, other than the partner suing, willfully or persistently commits breach of agreement relating to the management of the affairs of the firm or the conduct of its business, or otherwise so conducts himself in matter relating to the business that it is not reasonably practicable for the other partners to carry on the business in partnership with him. That a partner, other than the partner suing has in any way transferred the whole of his interest in the firm to a third party, or has allowed his share to be charged under the provisions of rule 49 of Order XXI of the First Schedule to the Code of Civil Procedure, 1908 or has allowed it to be sold in the recovery of arrears, of land revenue or of any dues recoverable as arrears of land revenue due by the partner. That the business of the firm cannot be carried on save at a loss. On any other ground which renders it just and equitable that the firm should be dissolved. Liability for acts of partners done after dissolution (1) Not withstanding the dissolution of a firm the partners continue to be liable as such to third parties for any act done by any of them which would have been an act of the firm if done before the dissolution unit public notice is given of the dissolution. Provided that: The estate of a partner who dies, or who is adjudicated an insoktent or of a partner who not having been known to the person dealing with the firm to be a partner, retires from the firm, is not liable under this section for acts done after the date on which he ceases to be a partner. (2) Notices under such- Section 91) may be given by any partner Right of partners to have business wound by after dissolution - On the dissolution of a firm every partner or his representative is entitled, as against all the other partners or their representatives, to have the property of the firm applied in payment of the debts and liabilities of the firm and to have the surplus distributed among the partners or their representatives according to their rights. Continuing authority of partners for purposes of winding up - After the dissolution of a firm the authority of each partner to bind the firm, and the other mutual rights and obligations of the partners, continue not withstanding the dissolution, so far as may be-necessary to wind up the affairs of the firm and to complete transactions begun but unfinished at the time of the dissolution, but not otherwise. Provided that the firm is no case bound by the acts of a partner who has been adjudicated insolvent, but this proviso does not affect the liability of any person who has after the adjudication represented himself or knowingly permitted himself to be represented as a partner of the insolvent. Short Note -Sec 47- Suit on pronote filed by two partners - One partner died Surviving partner is competent to continue the suit - Abdul Rehman vs. Rameshwar Dayal, 1004 DNJ (Raj) 59, 1994 (2) WLC 260, 1994(1) RLW 40: 1994 (2) RLR 209