Amendment status not verified — confirm the current text below against the official source.
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 and 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. Agreement 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 specific period or within specified local limits and notwithstanding anything contained in section 27 of the Indian Contract Act 1872 such agreement shall be valid if the restrictions imposed are reasonable. Short Note -Sec-54- Word' 'or' used in between' within a specified period or within specified local limits cannot be read as 'and ' - 1969 WLN 570 Sale of good will after dissolution (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) Right of buyer and seller of good will - Where the goodwill of a firm is sold after dissolution, a partner may carry on a business competing with that of the buyer and be may advertise such business, but subject to agreement between him and the buyer, he may not. use the firm name Represent himself as carrying on the business of the firm or Solicit the custom of persons who were dealing with the fi(m before its dissolution. 3) Agreement in restraint of trade- 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 not withstanding any thing contained in section 27 of the Indian Contract Act, 1872, such agreement shall be valid if the restrictions imposed are reasonable. Short Note -Sec 55- Goodwill is a part of assets of the partnership firm - Khusal Khemgal shah vs. Mrs. Khurshed Banu, AIR 1970 SC 1147 : (1970) 1 SCC 415 AIR 1964 SC 11. CHAPTER VII - REGISTRATION OF FIRMS Power.to exempt from application of this chapter - The State Government of any State may, by notification in the Official Gazette, direct that the provisions of this chapter shall not apply to that state or to any part there of specified in the notification. Appointment of Registrars (1) The State Government may appoint Registrar of firm for the purposes of this Act, and may define the areas within which they shall exercise their powers and perform their duties (2) Every Registrar shall bedeemed to be a public servant within the meaning of section 21 of the Indian Penal Code. Application for registration (1) The registration of a firm may be effected at any time by sending by post or delivering to the registrar of the area in which any place of business of the firm is situated or proposed to be •situated, a statement in the prescribed form and accompanied by the prescribed fee stating - The firm name', The place or principal place of business of the firm. The names of any other places where the firm carries on business The date when each partner joined the firm The names in full and permanent addresses of the partners and The duration of the firm The statement shall be signed by all the partners, or by their agents specially authorised in his behalf Each person signing the statement shall be also verify it in the manner prescribed A firm name shall not contain any of the following words - namely - "Crown", "Emperor", "Empress", "Empire", "Imperial", "King", "Queen", "Rayal", or words expressing or implying the sanction, approval or patronage of Government, except when the State Government signifies its consent to the use of such words as part of the firm name by order in writing. Skort Note Sec 58 - Certificate of registration issued by Registrar of firm show that the firm is registered - 1993 AIHC cases 373 (H.P.)