Can a partnership firm compulsorily dissolved?

Business Strategist

Can a partnership firm compulsorily dissolved if partnership has various adventures and one of such adventure becomes illegal?



Partnership have terms and conditions mentioned in the agreement. Any partner can have other businesses as per his wishses unless there are any restriction. 


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As and when the activity carried on by the partnership firm becomes illegal, it shall discontinue the business under partnership or amend the partnership deed by removing said business activity from the clause.

If the business numerous business activities are independent to each other i.e. the other activities are not dependent on the illegal activity, it can be continued.

However, if other activities are associated or dependent on illegal activity, the activities shall be discontinued by the firm. In this situation, the firm shall dissolve or change the business activities in the deed with necessary alternation in business structure.

In any case, one shall not carry on any illegal activity under the partnership firm.



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