Section 36 in The Jammu and Kashmir State Partnership Act, 1996
36. Rights 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)Agreement in restrain of trade. - A partner may make an agreement with his partners that upon ceasing to be a partners 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 section 27 of the Contract Act, 1977, such agreement shall be valid if the restrictions imposed are reasonable.
