Section 54
Agreements in restraint of trade.
The Indian Partnership Act, 1932
About this Act
An Act to define and amend the Law Relating to Partnership.
Partners may, upon or in anticipation of the dissolution of
the firm, make an agreement that some or all of them will not carry on a 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 (9 of 1872), such agreement shall be valid if the restrictions
imposed are reasonable.