Circumstances under which the court will generally order the dissolution of a partnership

Under section 39 of the Partnership Act, a court may order the dissolution of a partnership on the following grounds:

1. If a partner has become a lunatic or is permanently of unsound mind
2. If a partner is continuously guilty of willful breach of the partnership agreement
3. If the firm’s business can only be carried on at a loss
4. If a partner is permanently incapable of discharging his obligations as a partner.
5. If a partner has conducted himself in a matter prejudicial to the firm and his continued association is likely to bring the firms name into disrepute.
6. If it is just and equitable that the partnership be dissolved.