Sale of goodwill after dissolution
Commencement. 1932-10-01 (except section 69) 1933-10-01
Section 55 of the Indian Partnership Act, 1932 deals with sale of goodwill after dissolution. In settling the accounts of a firm after dissolution, the goodwill shall, subject to contract between the partners, be included in the assets, and it may be sold either separately or along with other property of the firm. The Act was enacted on 08 Apr 1932.
(1) In settling the accounts of a firm after dissolution, the goodwill shall, subject to contract between the partners, be included in the assets, and it may be sold either separately or along with other property of the firm.
(2) Where the goodwill of a firm is sold after dissolution, a partner may carry on a business competing with that of the buyer and he may advertise such business, but, subject to agreement between him and the buyer, he may not--
(a) use the firm name,
(c) represent himself as carrying on the business of the firm, or
(c) solicit the custom of persons who were dealing with the firm before its dissolution.
(3) Any partner may, upon the sale of the goodwill of a firm, make an agreement with the buyer that such partner will not carry on any 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 55, The Indian Partnership Act, 1932 (Act 9 of 1932).
Questions about Section 55
What does Section 55 of the Indian Partnership Act deal with?
Section 55 of the Indian Partnership Act is headed "Sale of goodwill after dissolution". In settling the accounts of a firm after dissolution, the goodwill shall, subject to contract between the partners, be included in the assets, and it may be sold either separately or along with other property of the firm.
How do I find court cases under Section 55 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 55, section 55 Partnership Act, section 55 of the Indian Partnership Act. People searching for it also type section 55 of indian partnership act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When was Section 55 of the Indian Partnership Act enacted?
Section 55 of the Indian Partnership Act, cited as Partnership Act 55, 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.