Dissolution of partnership means the end of existing terms and conditions of the partnership. Dissolution of partnership may be because of a change in profit sharing ratio, admission of a new partner, or retirement/death of the partner. There is no court intervention in the dissolution of the partnership.
Dissolution of a partnership firm means the end of partnership among all the partners. Now the firm ends its all operation and shuts down its business forever. It doesn’t continue it’s business and books of accounts have to be closed. Dissolution of partnership firm means dissolution of partnership also. The court can intervene or can give orders to dissolve the partnership firm.
As per Section 44 of the Indian Partnership Act, states the following conditions under which the court orders the dissolution of the partnership firm, and they are:
When a partner becomes unsound mind.
When a partner is permanently incapable of performing his duties.
When a partner continuously breaches the contract of the partnership firm.
When partnership firms continuously incur losses over the past few years.
When the court finds it justifiable for the firm to be closed for other reasons.
Final Answer: The court can’t intervene in the dissolution of the partnership but it can intervene and give orders for the dissolution of the partnership firm.