Section 52- Rights where Partnership Contract is Rescinded for Fraud or Misrepresentation
Where a contract creating partnership is rescinded on the ground of the fraud or misrepresentation of any of the parties thereto the party entitled to rescind is, without prejudice to any other right,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 to 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 53- 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:
It is 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 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.
Where a contract creating partnership is rescinded on the ground of the fraud or misrepresentation of any of the parties thereto the party entitled to rescind is, without prejudice to any other right,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 to 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 53- 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:
It is 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 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.
Rights of Partners upon Dissolution of Partnership
![Rights of Partners upon Dissolution of Partnership]()
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