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Section44
The Indian Partnership Act, 1932

Dissolution by the Court

In force Act 9 of 1932 As on 15 Oct 2026

Act 9 of 1932 Ministry Corporate Affairs Enacted 08 Apr 1932

Commencement. 1932-10-01 (except section 69) 1933-10-01

Section 44 of the Indian Partnership Act, 1932 deals with dissolution by the Court. At the suit of a partner, the Court may dissolve a firm on any of the following grounds, namely:-- (a) that a partner has become of unsound mind, in which case the suit may be brought as well by the next friend of the partner who has become of unsound mind as by any other partner; The Act was enacted on 08 Apr 1932.

At the suit of a partner, the Court may dissolve a firm on any of the following grounds, namely:--

(a) that a partner has become of unsound mind, in which case the suit may be brought as well by the next friend of the partner who has become of unsound mind as by any other partner;

(b) that a partner, other than the partner suing, has become in any way permanently incapable of performing his duties as partner;

(c) that a partner, other than the partner suing, is guilty of conduct which is likely to affect prejudicially the carrying on of the business, regard being had to the nature of the business;

(d) that a partner, other than the partner suing, wilfully or persistently commits breach of agreements relating to the management of the affairs of the firm or the conduct of its business, or otherwise so conducts himself in matters relating to the business that it is not reasonably practicable for the other partners to carry on the business in partnership with hint;

(e) 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, or has allowed his share to be charged under the provisions of rule 49 of Order XXI of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), or has allowed it to be sold in the recovery of arrears of land-revenue or of any dues recoverable as arrears of landrevenue due by the partner;

(f) that the business of the firm cannot be carried on save at a loss; or

(g) on any ground which renders it just and equitable that the firm should be dissolved.

Section 44, The Indian Partnership Act, 1932 (Act 9 of 1932).

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. V. H. Patel Co. vs H. H. Patel

    Supreme Court of India 18 Apr 2000 Binding (SC)

    Court's Decision & Legal Precedent

    When all disputes and differences arising between partners have been referred to arbitration through a consent order or arbitration clause in a partnership deed, an arbitrator has the jurisdiction and power to decide on the dissolution of the partnership, even if dissolution was not explicitly mentioned in the original reference or pleadings, provided the matter relates to the disputes between the parties. The scope of arbitration reference should be interpreted based on the spirit and intent behind the reference (to settle all disputes between parties) rather than merely the literal wording of the order. An arbitrator can consider grounds for dissolution such as destruction of mutual trust and confidence, breach of agreement, and conduct destructive of mutual confidence, which fall within the arbitrator's jurisdiction when all disputes are referred to arbitration.

    On this section: Provides grounds for dissolution of partnership including breach of agreement, conduct destructive of mutual confidence; Court held these grounds can be applied by arbitrator

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Questions about Section 44

What have the courts held on Section 44 of the Indian Partnership Act?

V. H. Patel Co. vs H. H. Patel (18 Apr 2000) is the leading judgment on this section among those set out below: Provides grounds for dissolution of partnership including breach of agreement, conduct destructive of mutual confidence; Court held these grounds can be applied by arbitrator.

How do I find court cases under Section 44 of the Indian Partnership Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Partnership Act 44, section 44 Partnership Act, section 44 of the Indian Partnership Act. People searching for it also type indian partnership act 1932 section 44. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with V. H. Patel Co. vs H. H. Patel (18 Apr 2000).

When was Section 44 of the Indian Partnership Act enacted?

Section 44 of the Indian Partnership Act, cited as Partnership Act 44, was enacted on 08 Apr 1932 as Act 9 of 1932. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.