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Legal Yojana

PARTNERSHIP DEED

Updated: Sep 19

PARTNERSHIP DEED

THIS DEED OF PARTNERSHIP is executed on this.................. day of..................................... BETWEEN. 

.............................. 

son of........................................ resident of.................................. .................................................. (hereinafter called the party of the First part)

AND 

Shri.......................................

son of Shri....................................... Resident of.................................................. ............................................................................. (hereinafter called the party of the Second part).

WHEREAS the parties abovenamed are desirous of entering into an agreement of partnership for carrying on the business of....................................... in partnership in the name and style of..................................................................

AND WHEREAS the parties to this Deed have deemed it necessary and expedient to execute a DEED OF PARTNERSHIP defining the terms and conditions inter se to avoid confusion or complications at a later date.

NOW THEREFORE THIS DEED OF PARTNERSHIP WITNESSTH 

AS UNDER:-

1. That the partnership business shall be carried on in the name and style of............................................................ 

2. That the business of partnership shall be that of....................................... .............................................................................. and can be extended to such other Line or Lines of business as partners may decide by mutual consent.

3. That the place of business of the partnership shall be at............................ ...................................................................... The partners are entitled to open branches at such place or places as they may decide from time to time. The principal place of business may also be shifted to such other place or places as the partners may unanimously decide.

4. That the partnership shall commence with effect from............................ ................................................................ and shall continue at the will of the partners determinable as provided hereinafter.

5. That the profit of the partnership business or the loss, if any, shall be shared equally between the partners.

6. That the capital investment of the partners shall be the sum of money that may be standing to the credit of partners in the books of partnership from time to time.

7. That all the books of partnership shall be placed at the place of the business and shall not be removed from that place without the consent of all the partners and shall be open for inspection in the usual working hours by the partners who shall be at liberty to take extract or copies thereof.

8. That the partners are entitled to make drawing out of their capital and that the firm shall pay interest to the partners on the capital balance out of the profit at such rates as may be decided by the partners before the closure of accounts each year.

9. That the Annual Account of the Partnership shall be taken on 31 st March of every year and the statement of assets and liabilities, Trading Account, Profit & Loss Account prepared shall be duly signed and audited.

10. That the partners may open Bank Account or Accounts with some schedule Bank or Banks and the same shall be operated by partners jointly or as may be mutually decided by the partners. Withdrawal can be made by the signatures of two of the partners or as may be mutually agreed by all the partners.

11. That any loan required for the partnership shall be raised by the partners with the joint consent and concurrence under their joint signatures. Any loan raised in contravention of whatever been stated above shall not be binding on the partnership and the person raising the loan shall be liable personally.

12. That no partner shall without the consent of other partners in writing transfer, mortgage, sell or assign his shares or interest in the partnership business and shall not introduce any other as partner with him therein.

13. That the partnership is "At Will" of the partners and be terminable by giving one calender months notice in writing by the outgoing partner to the other partner.

14. That both the partners shall be working partners who will be entitled to remuneration and commission equally out of the gross remuneration allowable out of books profit of the firm in terms of section 40(b) of the Income Tax Act 1961. In case of loss the gross remuneration payable shall not exceed Rs. 50. 000/- per annum.

15. That the partnership shall maintain a Minutes Book in which the decision of the partners arrived at each year prior to the closure of the accounts on the quantum of remuneration and commission payable to the working partners as per clause 14 above and also the rate at which interest as per clause 8 above shall be entered and retained for the purposes of record.

16. That the partners shall diligently attend the business of the firm. No partner shall during the continuance of the partnership do or cause to be done anything which may be harmful and derogatory to the best interest of the partnership business.

17. That the partnership shall not be liable for the liabilities of the parties to this Deed of Partnership.

18. That in respect of matters not specifically dealt with in this Deed of Partnership the provisions of the Indian Partnership Act, 1932 shall apply.

19. That in case of any disputes between the parties to this Deed of partnership no party shall be entitled to rush to a court of law. The matter shall be referred to arbitration under the Indian Arbitration Act, 1940.

20. That any of the above terms, conditions and stipulations may be altered, varied or added to mutually taking the consent of all the partners in writing.

IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their hands on these presents on the day, month and year first mentioned hereinabove.

WITNESS FIRST PARTY

SECOND PARTY

DEED OF DISSOLUTION OF PARTNERSHIP 

DISSOLUTION DEED

This Deed of Dissolution of Partnership is made and entered on.............. among Shri............................................................................... (herein after called the 1 st party) and Shri.................................................................. (herein after called the second party) which expression shall include their legal heirs, representatives or any other person/persons claiming though or under them.

WHEREAS THE aforesaid parties have been carrying on the business of ............................................................. in the name and style of................................. ............................................ in partnership by virtue of the deed of partnership executed by them on........................................

WHEREAS ALL the parties above mentioned have decided to dissolve the firm with the consent of the each other with effect from....................................... and to close the whole business to avoid any further complication the Dissolution Deed is reduced in writings.

NOW THIS DEED WITNESSES AS UNDER:

1. That the said partnership is hereby dissolved and shall stand terminated and dissolved with effect from........................................

2. That a full and complete Accounts has been taken of the assets and liabilities of the partnership together with a valuation of all the items of as admit of valuation as mentioned in the Balance Sheet appended herewith and the constitution an integral part of the deed of dissolution of partnership.

3. That all the above said parties have taken all their dues which stand in Balance Sheet as their shares.

4. That all the partners have taken copy of Balance Sheet, Trading Account and profit & Loss account and copy of the Dissolution Deed and whatsoever in the said firm.

IN WITNESS WHEREOF the partners hereto have put their respective signature on this Instrument in the presence of witnesses on the date, month and year first above written.

Witnesses…………..


First party............................ Second Party...........................


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