A dissolution of a firm can be claimed under Section 44(e) of the Indian Partnership Act, where a partner has transferred his interest in the partnership firm to :

Haryana Judicial Service (Civil Judge) Prelims 2010 Previous Year Question Papers with MCQ Answers

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57.

A dissolution of a firm can be claimed under Section 44(e) of the Indian Partnership Act, where a partner has transferred his interest in the partnership firm to :

A: a partner

B: a third party

C: all the partners

D: none of the above

The answer is: B

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Explanation

The correct option is B: a third party.

According to Section 44(e) of the Indian Partnership Act, 1932, one of the grounds for dissolution by the court is 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. This means that the partner has given up his rights and obligations as a partner to someone outside the firm, which may affect the continuity and stability of the partnership.

Therefore, the remaining partners can seek dissolution of the firm on this ground.