Section 54:
Agreements in restraint of trade.
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.