RIGHTS OF AN OUTGOING PARTNER

Submitted by Digvijaya Srivastava Submitted to Dr.Vijay Kumar Vimal

Roll no 1525, Faculty of Contract Act - 1
rd
3 semester, BA.LLB.(Hons.)

ROUGH DRAFT SUBMITTED IN PARTIAL FULFILLMENT OF COURSE TITLED Contract Law - 1

FOR COMPLETION OF BA.LLB. (HONS.)

SEPTEMBER 2016

CHANAKYA NATIONAL LAW UNIVERSITY

NYAYA NAGAR, MITHAPUR,
PATNA (BIHAR)
 1. Introduction

The Indian Partnership Act of 1932 deals with the rights with a partner leaving a partnership
firm and going for competing business. It is dealt with section 36 of the INDIAN
PRTNERSHIP ACT 1932.

36. Right of outgoing partner to carry on competing business

1. An outgoing partner may carry on a business competing with that of the firm and he may

advertise such business, but, subject to contract to the contrary, he may not-

a. use the firm name,

b. represent himself as carrying on the business of the firm, or
c. solicit the custom of persons who were dealing with the firm before he ceased to
be a partner.

2. Agreements in restraint of trade-A partner may make an agreement with his partners that
on ceasing to be a partner he will not carry on any business similar to that of the firm
within a specified period or within a 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.

Objectives
The aim of this research paper is to present
1.To study the Concept of Partnership Firm.
2.To study various Rights associated with an outgoing partner of a Partnership firm.
3.To study the section 27 in light of the rights of an outgoing partner in Indian Partnership
Act
4. Relevant case Laws Regarding the Rights of an Outgoing partner
5Conclusion
1. Research Methodology

The researcher will use doctrinal method of research. The doctrinal sources for this research
paper arebooks, websites, journals, articles written by many authors, along with online
research.

1.1. Sources of data collection

The researcher will be using primary as well as secondary sources of data collection for
collecting the data regarding this project.

1.2. Limitation

This research project has certain limitations i.e. Time and monetary limitations, as the
research has to be done in prescribed time.

1.3. Scope of study

As the topic is very interesting and fundamental topic of Indian Partnership Act, so it will be
very useful for the readers to understand the Section 36 so this project is in many ways
useful, as it may be used by other researchers for further research.

2. Chapterization

1. Introduction
2. Section 36 Of Indian Partnership Act-Definition of outgoing partner and his rights)
3. . Section 27 of Indian Contract Act(Read in the light of section 36 of Indian contract
act)
4. Leading Case Laws related to the rights of an outgoing partner
 5. Conclusion

Bibliography

Books

1. R.K.BANGIA
2. AVATAR SINGH CONTRACT
3. MULLA CONTRACT ACT COMMENTRY

Websites

1. https://en.wikipedia.org
2. www.legalservicesindia.com
3. http://www.cnlu.ac.in/westlaw.html
4. http://www.scconline.com/