1. Dissolution by Mutual Agreement

• Partners can dissolve the firm voluntarily by mutual consent
  
• A written agreement is preferred for legal clarity and proof
  
• All partners must agree to close the business and settle affairs
  
• The dissolution terms should be recorded in the partnership deed or a separate document
  
• Notice of dissolution should be shared with clients, suppliers, and stakeholders
  

2. Dissolution on Occurrence of Specific Events

• A firm may dissolve automatically when a specific condition is met
  
• Common events include the expiry of the partnership term or the completion of a project
  
• Death or insolvency of a partner can also lead to dissolution
  
• If the firm was formed for a single venture, its completion ends the partnership
  
• Conditions for automatic dissolution may be outlined in the partnership deed
  

3. Dissolution by Notice in Partnership at Will

• If the firm is a partnership at will, any partner may issue a notice
  
• The notice must be in writing and sent to all other partners
  
• It must clearly state the intent to dissolve the firm
  
• Dissolution takes effect from the date mentioned in the notice
  
• No specific reason is required to dissolve a partnership at will
  

4. Dissolution by Court Order

• A partner may approach the court if there is a serious dispute or misconduct
  
• Grounds include breach of agreement, incapacity, or harmful behavior
  
• The court evaluates if the firm’s continuation is impractical
  
• If justified, the court passes an order for dissolution
  
• This method is used when internal agreement is not possible
  

5. Final Settlement and Closure

• The firm’s assets are sold, and its liabilities are cleared
  
• Remaining funds are distributed among partners as per the agreement
  
• All registrations, bank accounts, and licenses must be closed
  
• A formal notice should be filed with the Registrar of Firms if registered
  

Proper documentation ensures legal closure and avoids future claims