Section 39 of the Indian partnership act, 1932 deals with the dissolution of a partnership firm and states that it is the dissolution of the partnership between all the partners of the firm. The dissolution of a firm discontinues all the business activities that are going on in the form and the assets of the firm are used to pay off the debts. Dissolution of partnership firm also Dissolves the contractual relationship among the partners.

Dissolution of a firm can be done by the court or without intervention by the court. Section 40, section 41, Section 42, and section 43 of the Indian partnership app, 1932 deals with dissolution without any intervention of the court, and section 44 provide for dissolution by the court.

It is provided under section 40 that affirm can be dissolved with the consent of all the partners. The dissolution has to be in accord with the contract between the partners The partners will have to agree to dissolve the firm, this is called dissolution by agreement.

Section 41 deals with compulsory dissolution. It states that when all the partners become insolvent, or only one partner Remains solvent and others are insolvent then the form can be dissolved. If any unlawful activities are undergoing in the business of the firm like trading with enemy countries, or alien countries, selling an illegal product, then the firm may be dissolved.

Section 42 of the Indian partnership, 1932 deals with the dissolution of a firm on happening on a certain contingency or certain events. In case the fixed term of the partnership has been expired then the dissolution of the form will take place on the expiry of that contract. If the firm was formed to perform a certain task or number of tasks then after the completion of the task the firm may be dissolved or ceases to exist unless there is an agreement that states otherwise. With the death of a partner, other partners can choose to dissolve the firm, If they wish to continue the form even after the death they can do so, however, if they continue then the only partnership will be dissolved and not the firm. Insolvency of only one partner can also lead to the dissolution of the firm, so if one of the partners or all the partners is insolvent then the dissolution of the partnership can take place. The resignation of one partner can also lead to the dissolution of the firm.

Section 43 of the Indian partnership act, 1932 provides for dissolution by the notice of partnership at will. The section states that notice needs to be communicated to the other partners. Such notice of dissolution should not be communicated in between any transaction And if such notice is communicated in between the transaction then the notice has to be held until the transaction is completed. The notice of dissolution needs to be communicated properly and it should be written clearly and should not cause any confusion in any sense. So there are three things required that is the giving of notice, the notice should be in writing and, it must have an intention of dissolution of the firm.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.