Circumstances for Dissolution of a Firm :
(i) Compulsory Dissolution ( Sec.41): A Firm is Compulsory Dissolved in the following cases
(a) When All or But One Partner of the Firm becomes Insolvent .
(b) When Business of the Firm Becomes Unlawful .
(ii) Happening of an Event ( Sec. 42): A Firm may be Dissolved on the Happening of Any ONE of the following Incidents :
(a) On the Insolvency of a Partner.
(b) On the Fulfilment of the Object for which the Firm was Formed.
(c) On the Expiry of the ** for which the Firm was Formed .
