(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) |
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use the firm name, |
| (b) |
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represent himself as carrying on the business of the firm, or |
| (c) |
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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.