Agreements in restraint of trade
Commencement. 1932-10-01 (except section 69) 1933-10-01
Section 54 of the Indian Partnership Act, 1932 deals with 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; The Act was enacted on 08 Apr 1932.
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 54, The Indian Partnership Act, 1932 (Act 9 of 1932).
Questions about Section 54
What does Section 54 of the Indian Partnership Act deal with?
Section 54 of the Indian Partnership Act is headed "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;
How do I find court cases under Section 54 of the Indian Partnership Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Partnership Act 54, section 54 Partnership Act, section 54 of the Indian Partnership Act. People searching for it also type section 54 indian partnership act 1932. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When was Section 54 of the Indian Partnership Act enacted?
Section 54 of the Indian Partnership Act, cited as Partnership Act 54, was enacted on 08 Apr 1932 as Act 9 of 1932. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.