Q: Construe the solution of the given problem ?

Problem Statement:  'A' and 'B' started business as a partnership firm but after some time, their relations became so strained that they stopped speaking to each other. Information between them was exchanged through the accountant  . The firm made huge profits and continued to do so. Can the court order its dissolution?

Solution: The presented problem is related to  section 9 and 44(d) of the Partnership Act. Section 9 mentions that it is the duty of the partners to be faithful and they should be trustworthy to each other. If the opposite is happening, then the court can dissolve the firm under section 44 of partnership act, 1932. If a partner presents a suit for dissolution and clause (d) of section 44 of the partnership agreement is being continuously violated, then the firm can be dissolved.

In the presented problem, the relationship between A and B in the partnership firm of A and B is so tense that there is no interaction between them and all the activities are done through the accountant, so the facts shown in the question problem make it clear that partners have ceased to be faithful and loyal to each other and there is continuous breach of partnership agreement even though the firm is running in profit but on filing suit by any partner, the court can dissolve the firm.

In Harrison v. Tenant, one of the partners in the firm of solicitors ignored the other two partners and declined to settle dispute with mutual consultation, it was held that the conduct of one of the partners being destructive of mutual confidence, was a valid ground for dissolution of the firm.

If the conduct of the partnership is such that the trust between them is lost, the Court may order dissolution on filing suit of the any partner.

Therefore, in the present problem, the court can dissolve the partnership firm.

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