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What is Dissolution of Partnership? 

Section 39 of the Indian Partnership act deals with the dissolution of Partnership. Dissolution of Partnership means breaking up or discounting the partnership with the other partners of the company whereas Dissolution of Partnership between all the partners of the firm is referred as Dissolution of the firm. There are certain circumstances which result in dissolution of partnership such as when a firm is constituted for a fixed period of time or on the completion of the particular purpose, on the death of the partner, on the insolvency of the partner, or on the retirement of the partner or the partner disagree on certain provision to run the existing business. The accounts of the leaving partners are settled, assets and liabilities are revalued and the existing partners continue to run and maintain the business. 

Why it is Important? 

Dissolution of Partnership is a very crucial stage in any business, where one or more than one partner dissolves its partnership Agreement with the firm and no longer participates in the business affairs. There are certain modes by which partnership can be dissolved

i.) by the intervention of the court

ii.) without the invention of the court. It is a very important document in case if any partner is willing to leave the company, or by Compulsory dissolution or on happening of certain contingencies he/she shall provide a notice in advance to the other partners about his intention of terminating his partnership.

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