Section 54 Indian Partnership Act 1932

Section 54 Indian Partnership Act

Section 54 of the Indian Partnership Act 1932 is about Agreements in restraint of trade. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

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.

Section 53 Indian Partnership Act 1932

Section 53 Indian Partnership Act

Section 53 of the Indian Partnership Act 1932 is about Right to restrain from use of firm name or firm property. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

Right to restrain from use of firm name or firm property.

After a firm is dissolved, every partner or his representative may, in the absence of a contract between the partners to the contrary, restrain any other partner or his representative from carrying on a similar business in the firm name or from using any of the property of the firm for his own benefit, until the affairs of the firm have been completely wound up:

Provided that where any partner or his representative has bought the goodwill of the firm, nothing in this section shall affect his right to use the firm name.

Section 52 Indian Partnership Act 1932

Section 52 Indian Partnership Act

Section 52 of the Indian Partnership Act 1932 is about Rights where partnership contract is rescinded for fraud or misrepresentation. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

Rights where partnership contract is rescinded for fraud or misrepresentation.

Where a contract creating partnership is rescinded on the ground of the fraud or misrepresentation of any of the parties thereto, the party entitled to rescind is, without prejudice to any other right, entitled–

(a) to a lien on, or a right of retention of, the surplus or the assets of the firm remaining after the debts of the firm have been paid, for any sum paid by him for the purchase of a share in the firm and for any capital contributed by him;

(b) to rank as a creditor of the firm in respect of any payment made by him towards the debts of the firm; and

(c) to be indemnified by the partner or partners guilty of the fraud or misrepresentation against all the debts of the firm.

Section 51 Indian Partnership Act 1932

Section 51 Indian Partnership Act

Section 51 of the Indian Partnership Act 1932 is about Return of premium on premature dissolution. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

Return of premium on premature dissolution

Where a partner has paid a premium on entering into partnership for a fixed term, and the firm is dissolved before the expiration of that term otherwise than by the death of a partner, he shall be entitled to repayment of the premium or of such part thereof as may be reasonable, regard being had to the terms upon which he became a partner and to the length of time during which he was a partner, unless–

(a) the dissolution is mainly due to his own misconduct, or

(b) the dissolution is in pursuance of an agreement containing no provision for the return of the premium or any part of it.

Section 50 Indian Partnership Act 1932

Section 50 Indian Partnership Act

Section 50 of the Indian Partnership Act 1932 is about Personal profits earned after dissolution. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

Personal profits earned after dissolution.

Subject to contract between the partners, the provisions of clause (a) of section 16 shall apply to transactions by any surviving partner or by the representatives of a deceased partner, undertaken after the firm is dissolved on account of the death of a partner and before its affairs have been completely wound up:

Provided that where any partner or his representative has bought the goodwill of the firm, nothing in this section shall affect his right to use the firm name.

Section 49 Indian Partnership Act 1932

Section 49 Indian Partnership Act

Section 49 of the Indian Partnership Act 1932 is about Payment of firm debts and of separate debts. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

Payment of firm debts and of separate debts

Where there are joint debts due from the firm, and also separate debts due from any partner, the property of the firm shall be applied in the first instance in payment of the debts of the firm, and, if there is any surplus, then the share of each partner shall be applied in payment of his separate debts or paid to him. The separate property of any partner shall be applied first, in the payment of his separate debts, and the surplus (if any) in the payment of the debts of the firm.

Section 48 Indian Partnership Act 1932

Section 48 Indian Partnership Act

Section 48 of the Indian Partnership Act 1932 is about Mode of settlement of accounts between partners. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

Mode of settlement of accounts between partners.

In settling the accounts of a firm after dissolution, the following rules shall, subject to agreement by the partners, be observed: —

(a) Losses, including deficiencies of capital, shall be paid first out of profits, next out of capital, and, lastly, if necessary, by the partners individually in the proportions in which they were entitled to share profits.

(b) The assets of the firm, including any sums contributed by the partners to make up deficiencies of capital, shall be applied in the following manner and order:–

(i) in paying the debts of the firm to third parties;

(ii) in paying to each partner rateably what is due to him from the firm for advances as distinguished from capital;

(iii) in paying to each partner rateably what is due to him on account of capital; and

(iv) the residue, if any, shall be divided among the partners in the proportions in which they were entitled to share profits.

Section 47 Indian Partnership Act 1932

Section 47 Indian Partnership Act

Section 47 of the Indian Partnership Act 1932 is about Continuing authority of partners for purposes of winding up. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

Continuing authority of partners for purposes of winding up.

After the dissolution of a firm the authority of each partner to bind the firm, and the other mutual rights and obligations of the partners, continue notwithstanding the dissolution, so far as may be necessary to wind up the affairs of the firm and to complete transactions begun but unfinished at the time of the dissolution, but not otherwise:

Provided that the firm is in no case bound by the acts of a partner who has been adjudicated insolvent; but this proviso does not affect the liability of any person who has after the adjudication represented himself or knowingly permitted himself to be represented as a partner of the insolvent.

Section 46 Indian Partnership Act 1932

Section 46 Indian Partnership Act

Section 46 of the Indian Partnership Act 1932 is about Right of partners to have business wound up after dissolution. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

Right of partners to have business wound up after dissolution

On the dissolution of a firm every partner or his representative is entitled, as against all the other partners or their representatives, to have the property of the firm applied in payment of the debts and liabilities of the firm, and to have the surplus distributed among the partners or their representatives according to their rights.

Section 45 Indian Partnership Act 1932

Section 45 Indian Partnership Act

Section 45 of the Indian Partnership Act 1932 is about Liability for acts of partners done after dissolution. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

Liability for acts of partners done after dissolution.

(1) Notwithstanding the dissolution of a firm, the partners continue to be liable as such to third parties for any act done by any of them which would have been an act of the firm if done before the dissolution, until public notice is given of the dissolution:

Provided that the estate of a partner who dies, or who is adjudicated an insolvent, or of a partner who, not having been known to the person dealing with the firm to be a partner, retires from the firm, is not liable under this section for acts done after the date on which he ceases to be a partner.

(2) Notices under sub-section (1) may be given by any partner.