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Amar, Akbar and Anthony jointly started business of supplying cottons and agreed to share profits equally through oral agreement on 01.03.2007. Amar and Akbar are active partners, while Anthony is a sleeping partner.
Q.If Amar becomes insane, and his friend files a suit. Can the court pass an order for dissolution?
- a)No, because suit has not been filled by a partner.
- b)No, because other partners are still working.
- c)Yes, if Amar agrees to it.
- d)Yes.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Amar, Akbar and Anthony jointly started business of supplying cottons ...
Answer:
Dissolution of Partnership
When a partnership comes to an end, it is known as dissolution. It is a process of terminating the partnership between partners. Dissolution can occur in various ways, such as by mutual agreement, by expiry of the partnership term, by breach of contract, by operation of law, and by insolvency.
Dissolution by Court Order
When a partner becomes insane, it can create difficulties in the functioning of the partnership. In such cases, the court can pass an order for the dissolution of the partnership. The court can pass such an order if the following conditions are met:
- The partner has become insane and is unable to perform his duties.
- The other partners are unable to carry on the business due to the insanity of the partner.
- The insane partner is not willing to retire from the partnership.
- The partnership agreement does not provide for the retirement of an insane partner.
In the given case, the partnership agreement was made orally, and it does not provide for the retirement of an insane partner. If Amar becomes insane, and his friend files a suit, the court can pass an order for the dissolution of the partnership if all the above conditions are met. The court can also appoint a receiver to wind up the affairs of the partnership.
Conclusion
In conclusion, the court can pass an order for the dissolution of the partnership if a partner becomes insane, and the partnership agreement does not provide for the retirement of an insane partner. The court can appoint a receiver to wind up the affairs of the partnership.
Dissolution of Partnership
When a partnership comes to an end, it is known as dissolution. It is a process of terminating the partnership between partners. Dissolution can occur in various ways, such as by mutual agreement, by expiry of the partnership term, by breach of contract, by operation of law, and by insolvency.
Dissolution by Court Order
When a partner becomes insane, it can create difficulties in the functioning of the partnership. In such cases, the court can pass an order for the dissolution of the partnership. The court can pass such an order if the following conditions are met:
- The partner has become insane and is unable to perform his duties.
- The other partners are unable to carry on the business due to the insanity of the partner.
- The insane partner is not willing to retire from the partnership.
- The partnership agreement does not provide for the retirement of an insane partner.
In the given case, the partnership agreement was made orally, and it does not provide for the retirement of an insane partner. If Amar becomes insane, and his friend files a suit, the court can pass an order for the dissolution of the partnership if all the above conditions are met. The court can also appoint a receiver to wind up the affairs of the partnership.
Conclusion
In conclusion, the court can pass an order for the dissolution of the partnership if a partner becomes insane, and the partnership agreement does not provide for the retirement of an insane partner. The court can appoint a receiver to wind up the affairs of the partnership.
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Amar, Akbar and Anthony jointly started business of supplying cottons and agreed to share profits equally through oral agreement on 01.03.2007. Amar and Akbar are active partners, while Anthony is a sleeping partner.Q.If Amar becomes insane, and his friend files a suit. Can the court pass an order for dissolution?a)No, because suit has not been filled by a partner.b)No, because other partners are still working.c)Yes, if Amar agrees to it.d)Yes.Correct answer is option 'D'. Can you explain this answer?
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Amar, Akbar and Anthony jointly started business of supplying cottons and agreed to share profits equally through oral agreement on 01.03.2007. Amar and Akbar are active partners, while Anthony is a sleeping partner.Q.If Amar becomes insane, and his friend files a suit. Can the court pass an order for dissolution?a)No, because suit has not been filled by a partner.b)No, because other partners are still working.c)Yes, if Amar agrees to it.d)Yes.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Amar, Akbar and Anthony jointly started business of supplying cottons and agreed to share profits equally through oral agreement on 01.03.2007. Amar and Akbar are active partners, while Anthony is a sleeping partner.Q.If Amar becomes insane, and his friend files a suit. Can the court pass an order for dissolution?a)No, because suit has not been filled by a partner.b)No, because other partners are still working.c)Yes, if Amar agrees to it.d)Yes.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amar, Akbar and Anthony jointly started business of supplying cottons and agreed to share profits equally through oral agreement on 01.03.2007. Amar and Akbar are active partners, while Anthony is a sleeping partner.Q.If Amar becomes insane, and his friend files a suit. Can the court pass an order for dissolution?a)No, because suit has not been filled by a partner.b)No, because other partners are still working.c)Yes, if Amar agrees to it.d)Yes.Correct answer is option 'D'. Can you explain this answer?.
Amar, Akbar and Anthony jointly started business of supplying cottons and agreed to share profits equally through oral agreement on 01.03.2007. Amar and Akbar are active partners, while Anthony is a sleeping partner.Q.If Amar becomes insane, and his friend files a suit. Can the court pass an order for dissolution?a)No, because suit has not been filled by a partner.b)No, because other partners are still working.c)Yes, if Amar agrees to it.d)Yes.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Amar, Akbar and Anthony jointly started business of supplying cottons and agreed to share profits equally through oral agreement on 01.03.2007. Amar and Akbar are active partners, while Anthony is a sleeping partner.Q.If Amar becomes insane, and his friend files a suit. Can the court pass an order for dissolution?a)No, because suit has not been filled by a partner.b)No, because other partners are still working.c)Yes, if Amar agrees to it.d)Yes.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amar, Akbar and Anthony jointly started business of supplying cottons and agreed to share profits equally through oral agreement on 01.03.2007. Amar and Akbar are active partners, while Anthony is a sleeping partner.Q.If Amar becomes insane, and his friend files a suit. Can the court pass an order for dissolution?a)No, because suit has not been filled by a partner.b)No, because other partners are still working.c)Yes, if Amar agrees to it.d)Yes.Correct answer is option 'D'. Can you explain this answer?.
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