36.
Rights of outgoing partner to carry on competing
business.- (1) An outgoing partner
may carry on a business competing with that
of the firm and he may advertise such business,
but subject, to contract to the contrary, he
may not
(a) use the firm-name,
(b) represent himself as carrying
on the business of the firm, or
(c) solicit the custom of
persons who were dealing with the firm before
he ceased to be a partner.
(2) AGREEMENT IN RESTRAINT
OF TRADE: A partner may make an agreement with
his partners that on ceasing to be a partner
he will not carry on any business similar to
that of the firm within a specified period or
within specified local limits; and, notwithstanding
anything contained in section 27 of the Indian
Contract Act, 1872, such agreement shall be
valid if the restrictions imposed are reasonable.
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