Chapter V - INCOMING AND OUTGOING PARTNERS___

(1) Subject to contract between the partners and to the provisions of Sec. 30 m no person shall be introduced as a partner into a firm without the consent of all the existing partners. (2) Subject to the provisions of Sec. 30, a person who is introduced as a partner into a firm does not there by become liable for any act of the firm done before he became a partner.

(1) A partner may retire - a) With the consent of all the other partners. b) in accordance with an express agreement by the partners, or c) Where the partnership is at will by giving notice in writing to all the other partners of his intention to retire (23)_ A retiring partner may be discharged from any liability to any third party for acts of the firm done before his retirement by an agreement made by him with such third party and the partners of the reconstituted firm after he had knowledge of the retirement. (3) Not withstanding the retirement of a partner from a firm, he and the partners continue to be liable as partners to third parties for any act done by any of them which would have been an act of the firm if done before the retirement, until public notice is given of the retirement. Provided that a retired partner is not liable to any third party who deals with the firm without knowing that he was a partner. (4) Notices under sub section (3) may be given by the retired partner or by any partner of the reconstituted firm.

(1) A partner may not be expelled from a firm by any majority of the partners, save in the exercise in good faith of powers conferred by contract between the partners. (2) The provisions of sub section(2), (3) and (4) of Sec. 32 shall apply to an expelled partner as if he were a retired partner.

Where under a contract between the partners the firm is not dissolved by the death of a partner, the estate of a deceased partner is not liable for any act of the firm done after his death.

(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 c) Olicit the custom of persons who were dealing with the firms before he ceased to be a partner. 2) Agreement 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 specified local limits; and., notwithstanding anything contained in Sec. 27 of the Indian Contract Act, 1872, such agreement shall be valid if the restrictions imposed are reasonable.

Where any member of a firm has died or otherwise ceased to be a partner, and the surviving or continuing partners carry on the business of the firm with the property of the firm without any final settlement of a accounts as between them and the outgoing partner or his estate then, in the absence, of a contract to the contrary, the outgoing partner or his estate is entitled at the option of himself or his representatives to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm or to interest at the rate of six per cent per annum on the amount of his share in the property of the firm. Provided that: where by contract between the partners an option is given to surviving or continuing partners to purchase the interest of a deceased or outgoing partner, and that option is duly exercised, the estate of the deceased partner or the outgoing partner or his estate, as the case may be, is not entitled to any further or other share of profits, but if any partner assuming to act in exercise of the option does not in all material respects comply with the terms thereof, he is liable to account under the foregoing provisions of this section

A continuing guarantee given to a firm or to a third party in respect of the transactions of a firm, is in the absence of agreement to the contrary, revoked as to future transactions from the date of any change in the constitutions of the firm