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sachin agarwal   12 May 2018

partnership

A, B and C, constitute a partnership firm for running a restaurant. The deed of partnership stipulates that no partner would independently carry on competitive business, even after retiring from partnership for a period of two years in the neighbour. C is expelled from the partnership on the grounds of not contributing for share towards the capital of the firm. C, opened a restaurant in the neighborhood. Can he be restrained by a suit brought by A and B? Will it make any difference, if the firm was not registered?


 1 Replies

R.Ramachandran (Advocate)     12 May 2018

I take it that the Firm is an unregistered one.

If that be so, then Section 69 of the Parrtnership Act, 1932 will come into play and it will not be possible to file any suit against the partner in question. 


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