Under the Indian Partnership Act, 1932, if a partner carries on a business competing with that of the…

Section 16(b) provides that a partner who carries on "any business of the same nature as and competing with that of the firm" shall "account for and pay to the firm all profits made by him in that business". Notice to the firm does not excuse him, and his liability is not limited to half the profits or to loss caused. Section16 operates subject to contract between the partners.