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Agreement Admitting a New Partner This Agreement is made at this ........ day of ........ between Mr. A and B hereinafter jointly referred to as the existing partners of the one part and Mr. C hereinafter referred to as the new partner of the other part. Whereas Mr. A and Mr. B are carrying on business In partnership in the name of M/s. A B and Company as from the day of ........ under and by virtue of the deed of partnership dated the ........ day of ........ entered into between them. And Whereas the existing partners now desire to admit the new partner as an additional partner In the said partnership and the new partner Is also willing the join the said partnership on the terms hereinafter provided. And Whereas the present book value of their shares in capital contribution of the existing partners Mr. A and Mr. B and in the assets of the Firm Is rupees. ........ and rupees ........ respectively which the new partner has agreed to accept. And Whereas the new partner is willing to bring in a capital contribution of rupees ........ In the Firm Now it is agreed by and between the partners hereto as follows - 1.     The existing partners hereby admit the new partner as a partner alongwith the existing partners of the said firm carried on or in the name of M/s A B and Company as from the ........ day of .…......., 2000. 2.     The partnership business will be carried on the same name as above mentioned and at the same place of business as at present. 3.     The business of the partnership will be the same as at present carried on and may be changed or added to with the consent of all the partners. 4.     The shares in the capital assets including goodwill of the firm as on this day ........ of the said three partners will be treated as follows - Mr. A ........ 40% Mr. B ........ 40% Mr. C ........ 20% (5) The shares of the parties hereto In the net profit and losses of the partnership will be as follows – Mr. A ........ 40% Mr. B ........ 40% Mr. C ........ 20% 6.     The duration of this new partnership will be at will but any partner may retire from the partnership by one month's prior notice. 7.     In case of difference of opinion on any question regarding business, the opinion of the majority will be final and binding on all the partners. 8.     Subject to what is otherwise provided herein the terms and conditions mentioned in the said deed of partnership dated ........ will be binding on the parties as if the said Mr. C was a party thereto and subject as aforesaid the said the deed of partnership as amended by this agreement will be treated the deed of partnership between the parties hereto. 9.     The change in the constitution of the said firm made by this agreement will be notified or registered under the Partnership Act, and Income Tax Act, as per the legal requirements thereof. IN WITNESS WHEREOF the parties have put their hands the day and year first hereinabove written. Signed by the within named Mr. A in the presence of Signed by the within named Mr. B in the presence of Signed by the within named Mr. C In the presence of Download Word Document In English. (Rs.10/-) Download PDF Document In Marathi. (Rs.5/-)

Another Partnership Deed This Deed of Partnership made at.................. this .............. day of ...........…...., 2000, between A, son of O of Bombay Hindu inhabitant, resident of ............................... of the ONE PART, B, son of E of Bombay Hindu inhabitant resident of .............................. of the SECOND PART and Mrs. C, wife of F, of Nagpur Hindu inhabitant, resident of .............................. of the THIRD PART. Whereby It Is Agreed that the parties hereto (hereinafter together called the partners) shall become partners in the business of ............... for the term of .............. years with effect from ............. upon the terms and conditions hereinafter contained namely: 1.     The partnership shall be carried on in the name and style of M/s. ............................................................................ 2.     The partnership business will be carried on at ................ and/or at such other place or places, as shall be agreed to by the partners from time to time. 3.     The capital of the partnership shall be Rs. .................... which shall be contributed by the partners in the following proportions. First Party 40% Rs . ................... Second Party 40% Rs . ................... Third Party 20% Rs . ................... The further capital if any required by the partnership shall be brought by the partners and such additional capital brought by the partners shall be treated as loan to the firm and shall be paid interest @ ............ % p.a. out of the gross profits of the firm. 4.     The partners may agree to increase the capital of the firm by bringing in additional contribution in the proportion of the shares held by them in the initial capital of the firm. At the time of increase of the capital, the additional capital of the partner or partners may be adjusted against the increased capital. 5.     The bankers of the partnership shall be ..................... Branch ................ The bank account of the firm shall be operated upon by any partner. 6.     The net profits of the business shall be divided between the partners in the proportion of the capital and they shall bear all losses including loss of capital in the same proportion. 7.     The firm shall maintain usual account and other books at the place of business and they shall be kept properly posted up to date and shall not be removed from the place of business without the consent of all the partners. Each partner shall have free access to the books of account of the partnership at all times and shall be entitled to make such copies or extract therefrom as he may think fit. 8.     The First and the Second Party shall devote their whole time and attention to the interests of the business and shall be the working partners. They shall be entitled to equal remuneration for their working out of the amount computed in the manner laid down under section 40(b) of the Income-tax Act, 1961. The remuneration so computed shall be worked out and credited in the books of account, at the close of the accounting year period. 9.     Each partner shall-               i.        Be just and faithful to other partners in the transactions relating to partnership business;              ii.        Pay his separate debts and indemnify the other partners and assets of the firm against the same and all other proceedings, costs, claims or demands in respect thereof;             iii.        Give full information and truthful explanations of all matters relating to the affairs of the partnership to ail the partners at all times. 10.  No partner shall without the consent of the other partners-                        i        Engage in any other business directly or indirectly.                       ii        Lend money or give credit of the goods of the firm to whom the other partners have previously forbidden him to trust.                      iii        Mortgage, charge or assign his share in the assets or profits of the firm.                      iv        Draw, accept or indorse any bill of exchange or promissory note on account of the firm.                       v        Engage, remove or dismiss any apprentice, employee or agent of the firm.                      vi        Give any security or promise for the payment of money on account of the firm except in the ordinary course of business.                     vii        Give bail, bond or guarantee or become surety for any person or do or knowingly suffer any thing to be done where the partnership property may be endangered.                    viii        Buy, order or contract any property or goods for the firm exceeding Rs. ......................                      ix        Sign any cheque on behalf of the firm to, a sum exceeding Rs. .............                       x        Compromise or compound or, release or, discharge any debt due to the partnership. 11.  The accounts of the partnership shall be maintained according to the financial year, from 1st April to 31st March and general account shall be taken of all the capital assets and liabilities to, the time being of the partnership as on ................. in each year and a balance sheet and profit and loss account shall be prepared by M/s. ....................... Chartered Accountants or any other Chartered Accountants to be agreed upon by the partners and a copy thereof shall be furnished to each of the partners, who shall be bound thereby, unless some manifest error shall be discovered within six months, in which case such error, shall be rectified. Immediately after the preparation of the said balance sheet and profit and loss account, the net profits less sums drawn by the partners shall be divided to the partners. 12.  Each partner, shall be entitled to ................ weeks holiday in each year and all the partners shall make choice of the holiday alternatively. 13.  A new partner, may be introduced with the consent of all the partners on such terms and conditions as the partners agree with the Person to be introduced as a partner, in the firm. 14.  On the death of any partner, during the continuance of the partnership, the firm shall not be dissolved, the surviving partners shall have the option to purchase the share of the deceased partner, in the partnership business and the property and goodwill thereof. The purchase price of the share of deceased partner shall be the amount at which such share shall stand in the last balance sheet which shall have been prepared prior to the death of the deceased or in the event of the death of either, partner before the preparation of the first balance sheet the sum credited to him as his share of capital, and interest at the rate of ............. % p.a. thereon in lie. of profit from the date of the then last preceding annual account up to the date of death of the deceased. The partner, purchasing the share of the deceased partner, shall also enter, into a covenant to indemnify the personal representatives of the deceased partner from the existing and future debts, obligations ant liabilities of the partnership. 15.  It a partner retires or becomes insolvent, then the partnership will not be dissolved, and the remaining partner, shall have the option to purchase the share of such partner and the purchase price shall be calculated as given in the preceding clause. 16.  All outgoings and expenses of the partnership and all losses or damages incurred, interest payable for any loans received and taxes, etc. shall be paid first out of the profits, next out of capital and in the case of further deficiency, by the partners in the shares in which they are entitled to the net profits of the partnership business. 17.  All partnership moneys, bills, notes, cheques and other instruments received by the partnership shall as and when received be paid and deposited in the bank to the credit of the firms' account, except such sums as are immediately required to meet the current expenses of the partnership firm. 18.  All transactions of the firm shall be done in the name of the partnership and all goods shall be purchased or sold in the firm name. All the bills, vouchers, delivery notes, receipts, etc. shall be issued in the name of the firm. 19.  If any partner shall assign, charge or encumber his share in the partnership or shall become bankrupt or a lunatic or otherwise permanently incapable of attending to the partnership business or shall absent himself from the partnership business for more than ............. days, in any period of the twelve months except during his annual holiday without the consent of the other partners, or commit any breach of any of the provisions of this agreement or commits any criminal offence or do or suffer any act which would be a ground for the dissolution of the partnership by the court and in any such case it shall be lawful for the other partners by notice in writing to the offending or incapacitated partner or his trustee or official assignee to determine the partnership whereupon the partnership so far as concerns such partner shall determine and the other partner shall have the option to purchase his share and pay the purchase price to the offending partner or his trustee or official assignee in accordance with clause 14 hereof. 20.  Upon the determination of the partnership by efflux of time or in the case of death, retirement or expulsion of a partner from the partnership, the surviving or other partner shall not exercise the option of purchasing the share and interest of the deceased, retired or expelled partner or the partnership is determined by any other event not herein otherwise provided, a full and general account of the assets, credits, debts, liabilities of the partnership shall be taken and the assets and credits shall be sold, realised and the proceeds shall be applied in paying and discharging debts, liabilities and expenses of and incidental to the partnership business and the winding up affairs of the partnership affairs and subject thereto in paying to each partner any unpaid profits which may be due to him and his share of the capital and the balance of such proceeds shall be divided between the partners in the shares in which they are entitled to the net profits of the partnership and the partners shall execute, do or cooperate in all necessary or proper instruments, acts, matters and things for effecting or facilitating the sale, realisation and getting in of the partnership assets and credits and the application and division of the proceeds thereof and for their mutual release or indemnity or otherwise. 21.  Upon the determination of the partnership, each partner shall have the option to purchase the goodwill of the partnership on a price as agreed to by the partners, and if no partner exercises the option to purchase the goodwill, the same shall be sold to a willing purchaser, PROVIDED THAT it upon any such determination as aforesaid of the partnership, the business thereof shall be sold as a going concern, the goodwill shall be sold along with the business. No partner (unless he is the purchaser of such business) shall directly or indirectly carry on or be concerned or interested in a similar business in his own name in the locality of the firm within a period of ................... years from the completion of sale of goodwill. The value of the goodwill shall be considered as an asset of the firm and will be added to and form part of the sum payable to all the partners on the dissolution of the partnership. 22.  All disputes and differences whatsoever which shall arise between the partners or between the partners and the personal representatives of the deceased partner relating to any matter whatsoever touching the affairs of the partnership or the interpretation of this agreement and whether before or after the determination of the partnership shall be referred to a single arbitrator, if the parties agree upon one, otherwise to three arbitrators one to be appointed by each party to the difference in accordance with and subject to the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof for the time being in force. 23.  All the other matters for which no provision is made in this deed, shall be decided by the majority of the partners for the time being of the partnership. IN WITNESS WHEREOF, the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written. Signed and delivered by the within named A Signed and delivered by the within named B Signed and delivered by the within named Smt.C WITNESSES; 1. 2. Download Word Document In English. (Rs.15/-) Download PDF Document In Marathi. (Rs.15/-)

Partnership Agreement between Two Limited Companies This Deed of Partnership is made at... on this.. day of.. between M/s. A B & Co. Pvt. Ltd., a Company registered under the Companies Act, 1956. and having its registered office at ... hereinafter referred to as the, Party of the First Part. and M/s. X Y Z & Co. a Company registered under the said Act and having its registered office at ... hereinafter referred to as the 'Party of the Second Part'. Whereas both the parties of the First Part and of the Second Part are, under their respective Memorandum of Association, entitled to carry on the business of producing electricity and supplying the same to any area. And Whereas both the Parties of the First Part and Second Part are entitled to enter Into partnership with any person or persons including a company for carrying on the business authorised by their respective Memorandum of Association. And Whereas the parties hereto have proposed to set up in joint collaboration a plant to produce electricity and supply the same to the town of ... and to enable them to pool together their finances and technical expertise they have therefore proposed to enter into a partnership. And Whereas the parties have obtained license or permission of the Govt. for producing and supplying electricity to the said town. And Whereas it is, therefore, proposed to enter into this deed of partnership containing the terms and conditions agreed upon between the parties. Now it is agreed by and between the Parties hereto as Follows:- 1.     The parties hereto agree to carry on the business hereinafter mentioned In partnership on the terms and conditions herein mentioned, In the name and style of M/s……………….. 2.     The partnership shall commence from the ... day of... and the period of the partnership shall be for a period of ten years from the date hereof. The said period may be extended as the parties may by mutual consent decide. 3.     The business of the partnership (hereinafter referred to as the 'Firm') consist of setting up a plant for manufacture or production of electricity on grid system and to supply-the same to the town of .………… 4.     The office of the partnership shall be at …………….... The parties will open branches at such other places as may be agreed upon. 5.     The parties have contributed towards the initial capital of the firm a sum of Rs... in equal shares. The partners will contribute such further amounts towards the capital of the firm in equal... shares as may be required from time to time. If any partner shall contribute more amount than Its share In the capital It will be treated as a loan by it to the Firm carrying Interest at the maximum rate allowable as deduction under the Income Tax Act. 6.     The net profits and losses of the Firm will be shared by the partners hereto in equal shares or proportion. Net profit will mean gross profit earned in each year less the expenses of the management of the business including the rent of the premises of the Firm including outgoings In respect of the salaries and wages of the staff, commission paid to others, and all other expenses Incurred In connection with the business of the firm and all other expenses as may be allowable as deduction under the Income Tax Act. 7.     The accounting year of the Firm will be from 1st April to 31st March of each Christian calendar year. 8.     At the end of each accounting year an account of the business carried on in that year will be made and a statement of accounts namely a Balance Sheet and Profit and Loss Account will be prepared and signed by the partners. The accounts will be got audited by a Chartered Accountant every year. 9.     The Managing Director or any other authorised representative of each of the parties hereto will represent his company on the Firm and for all practical purposes he will be considered as the partner of this partner- ship. 10.  The books of accounts and all other record of the Firm will be always kept at the office of the Firm and will be open for inspection by any of the partners hereto at any time. 11.  All the working staff such as clerks, peons, accountants, cashier, technicians, salesmen and others will be appointed by the joint consent of the parties hereto and their wages and salaries and other emoluments will be fixed by mutual consent of the parties hereto. 12.  Each of the Parties hereto shall - a.     participate and attend to the business of the Firm through their respective Managing Director or authorised representative for the time being to the greatest common advantage of the Firm. b.    be just and faithful to each other. c.     render true accounts and full information of all moneys affecting the Firm to the other, d.    indemnify the Firm for any loss caused to it by wilful negligence or fraud in the conduct of the business. e.     attend to the business of the Firm diligently and actively. f.     not withdraw any amount for its own profit, benefit or use as remuneration or otherwise without the consent of the other. g.    be entitled to be indemnified by the Firm in respect of payment made and liabilities incurred by him                       i.        in the usual and proper course of business of the Firm. and                      ii.        in doing any act for protecting the Firm from loss in emergency. 13.  All the tangible and Intangible assets of the Firm including the goodwill, stock in-trade, benefit of business licenses and permits, benefits of contracts entered etc. In relation to the said business will belong to the Parties In equal shares and the property of the Firm shall be used by the parties exclusively for the business of the firm. 14.  Every party shall account for the profits earned from any transaction of the Firm or for the use of the property in business transaction of the Firm. 15.  Any party hereto shall not, without the consent of the other and in respect of or relating to the said partnership business, a.     submit any dispute with any other person to arbitration or com- promise or relinquish any claim, b.    withdraw any suit or legal proceedings filed by the Firm, c.     admit any liability of the Firm, d.    acquire or dispose of any immovable or moveable property, except the stock In trade in the ordinary course of business. e.     assign or transfer Its share or any Interest in the Firm, (f) admit any person as a partner In the Firm, f.     borrow any moneys for or in the name of the Firm, or create any security or charge on the assets of the Firm, 16.  The Parties shall open one or more accounts either current, saving or overdraft or cash credit with one or more banks as may be agreed upon by the Parties and the account or accounts will be operated by the Managing Director or other authorised representative of each of the Parties hereto. 17.  No party hereto shall be entitled to dissolve the partnership before the expiration of the said period aforementioned. 18.  If any party does not desire to continue the partnership or if any party goes Into winding up voluntarily or through Court, the other party hereto will be entitled to take over the entire business together with all assets and subject to all liabilities at a valuation to be made through the Chartered Accountants of the Firm and the share of the former Party will be paid by instalments as may be agreed upon or decided by Arbitration. 19.  On the expiration of the said period of ten years or the extended period if any, the business of the partnership together with its assets and liabilities will be transferred to another company to be formed and registered jointly by the parties hereto on such terms as may be agreed upon failing which the partnership will be dissolved and the dissolution will be effected In terms of the provisions of the Partnership Act, 1932. 20.  If any dispute or difference shall arise between the parties hereto touching the business of the Firm or interpretation of any provision hereof, or otherwise. however relating to the Firm and its business, the same shall be referred to arbitration of a common arbitrator if agreed upon. failing which to two arbitrators one to be appointed by each party to the arbitration and the arbitration shall be governed by the Arbitration & Conciliation Act, 1996. 21.  The parties shall. as early as possible but in any event within the prescribed period get the Firm registered under the Partnership Act, 1932 and the Income Tax Act. 1961. 22.  Nothing In this Deed shall be constrained to prevent or disable any party hereto to carry on any business in terms of Its Memorandum of Association anywhere except the business of the partnership and no partner shall be entitled to have any right or concern with the other business and internal management of the other. 23.  This Deed is executed in duplicate and one copy will remain with the Party of the First Part and the other will remain with the Party of the Other Part. IN WITNESS WHEREOF the parties have put their respective hands the day and year first hereinabove written. Signed and delivered for and on behalf of the withinnamed M/s. A B & Co. Ltd., by its Managing Director, Mr ...... duly authorised In that behalf by the Board of Directors. In the presence of ... Signed and delivered by the withinnamed M/s. X Y Z Co. Ltd., by Its Managing Director Mr .... duly authorised by the Board of Directors, Mr ........ In the presence of ... Download Word Document In English. (Rs.15/-) Download PDF Document In Marathi. (Rs.15/-)

Partnership Agreement between Advocates This Deed  of Partnership made at ........................ this ............... day of .........................., 2000, between A son of ............................ resident of ........................... of the FIRST PART, B son of ........................ resident of ................. of the SECOND PART, C son of ....................... resident of .................. of the THIRD PART, and D son of ................... resident of ............... of the FOURTH PART. WITNESSETH THAT the parties hereto shall be and become partners on the following terms and conditions: 1.     The said partners will carry on the business of Advocates in partnership at ............... under the name and style of M/s. .................................................. with effect from ............. 2.     The partnership shall be for a period of ................ years unless previously determined in the manner hereinafter provided. 3.     The capital requisite for carrying on the partnership business is Rs. ...................... which shall be contributed by all the partners equally. Any further capital required from time to time shall be contributed by the partners in equal shares. 4.     The partnership firm shall open an account with .................. Bank ................................... Branch ............................... or such other bank as the partners shall from time to time agree upon. 5.     All partnership moneys, cheques, pay orders, demand drafts and other instruments for money shall as and when received be paid into or deposited in the bank to the credit of the partnership account. The moneys received by the firm or any partner on behalf of the firm of any client or third person shall forthwith be deposited in the said bank to a separate clients account to be kept by the firm. 6.     Proper books of account and diaries shall be kept by the partners at the business premises and the same shall be available for inspection by all the partners at all times. 7.     Each partner shall make full and proper entries of all business transacted by him on account of the partnership and cheek up the bills for all such matters. 8.     Each partner shall devote his whole time and attention to the partnership business and no partner shall, without the consent of the other partners engage in any other business or hold any office or appointment, provided that each partner can provide free and voluntary service to his friends or relatives. 9.     Each partner shall be entitled to ...................... days holiday in each year, and to absent himself from business to ................... days consecutively or otherwise in each year. If the period of absence of any partner exceeds ................ days, his share of the net profits of such year shall be considered as divided into 365 parts and for every day on which such partner shall have been absent in excess of such .............. days, one of such parts shall be divided equally between all the partners for the time being (including the partner so absenting himself). 10.  Each partner shall be entitled to draw a sum of Rs. ................. every month on account of his accruing share of the net profits for the current year. If in any year the aggregate amount drawn out by any partner shall be found to exceed the amount of his share in the net profits on taking of the annual account, he shall forthwith repay the excess to the partnership. 11.  No partner shall pledge and credit the partnership except in the usual and regular course of the business or conduct any business for any person, company or firm, whom the other partners shall have previously in writing, forbidden him to deal with. 12.  The firm shall not charge for acting as Advocates for a partner or the wife or any child or children of a partner or his, her, or their trustees, except out of pocket expenses or costs recovered against other parties in any proceedings or out of any estate or property the subject of any such proceedings and any costs recovered shall be credited to partnership account. 13.  No partner shall without the written consent of the other partners: a.     Engage directly or indirectly in any business other than that of the partnership. b.    Engage or dismiss any clerk, junior or any other employee of the partnership or take any junior, except hereinafter provided. c.     Employ any of the moneys of the partnership or clients or pledge the credit of the partnership except in the ordinary course of business and upon the account or for the benefit of the partnership. 14.  Each partner shall be entitled at any time to receive one junior to enable the latter to qualify as an advocate without paying any premium. 15.  The general account and balance sheet shall be taken and made as at the close of each year ending on the 31st March and after the taking of the account, the same shall be audited by M/s. ..................................... Chartered Accountants, whose audit shall extend to the separate clients account and to all properties belonging to any client which are in the possession or custody of the firm. 16.  The net profits appearing on each such yearly account shall be divided in equal shares and such profits less such sums as may have been previously drawn on account by such partner, may be withdrawn by the partners respectively entitled thereto, as and when there shall be money at the said bank available for that purpose over and above the moneys necessary for the current expenses of the partnership business. However, if on taking annual account, it is found that any partner has drawn out more than the share of profits as ascertained thereby, he shall repay the excess to the partnership within ................. days from the date of preparation of final annual account. 17.  Each of the partner shall be entitled to nominate one son in the partnership business and the nominee will work as junior advocate in the firm at a salary of Rs . ................. p.m. and on the partner retiring from the firm or on death of the partner, the nominee, if then duly qualified as an Advocate, shall be admitted a partner and will be entitled to his appointed share; Provided that if the nominee shall not be duly qualified or shall refuse or have refused by reason of death or otherwise have become unable to accept such nomination and become a partner then in any such case, such nomination shall be void and of no effect and his share shall be dealt with in accordance with the provisions hereinafter mentioned. Upon the admission of any such nominee as a partner, he shall be bound by the provisions of this deed so far as applicable and he shall execute a deed covenant to perform and observe the same, if required by the other partners. 18.  If any partner dies during the continuance of the partnership and his son does not become partner of the firm due to any reason, the share of the partner so dying shall be purchased by the surviving partners and he shall pay the purchase price to the legal representatives of the deceased within three months from the death of the deceased partner. For calculating the purchase price, an account and balance sheet shall be taken up to the day of the death from the last previous annual account and the share in the capital and assets of the partnership including goodwill, office furniture, books and office papers shall be ascertained and the said sum along with the sum which upon '3 0 taking of such account and balance sheet shall appear to be due to the deceased partner in respect of undrawn profits drawn to the date of his death shall be the purchase price. The value of the goodwill of the partnership business shall be taken to be a sum equal to two years purchase of the average net profits of the business for the three years next preceding the date of valuation as appearing from the annual accounts for those three years. 19.  On the death of the partner, the surviving partners will execute in favour of the legal representatives of the deceased partner, indemnity against the debts, liabilities, and obligations and the legal representatives shall also execute proper deeds and other instruments for vesting the share of the deceased partner in the partner or partners entitled thereto under the provisions of this deed. 20.  If either partner shall commit any breach of any of stipulations contained in this deed or if a partner becomes insolvent or shall become of unsound mind or incapacitated from attending to the partnership business for .................. months consecutively or if any partner retires, the partnership shall not dissolve and the provisions contained in clauses 18 and 19 hereof shall apply, provided that on the retirement of any partner from the partnership, he shall enter into a covenant with the continuing partners that he will not open an office or practice in the ................................ city or in or at any place within a radius of ........................ kms. measured in a straight line from ................... either in his own name or as a partner in any other firm. 21.  The notice to the parties under this deed shall be deemed to be duly served, if the same shall be delivered to him personally or sent by post in a registered letter addressed to him at his usual or last known place of abode in India. 22.  If the partnership is determined by a notice by any partner or by any means not hereinbefore expressly provided for then, the partnership shall be wound up and assets distributed as provided by the Partnership Act, 1932. 23.  All disputes and differences which shall arise between the partners or between the partners and legal representatives of one or more partners or between their respective legal representatives and whether during or after the determination of the partnership relating to the rights and liabilities or interpretation of this deed or to any act or omission of either party or matter or things done or to be done in pursuance hereof, such disputes and differences shall be referred to arbitration and award of Shri ............................. and his decision and award shall be final and binding upon the parties. IN WITNESS WHEREOF, the parties have hereunto set and subscribed their respective hands the day, month and year first above written. Signed and delivered by the within named A Signed and delivered by the within named B Signed and delivered by the within named C Signed and delivered by the within named D WITNESSES; 1. 2. Download Word Document In English. (Rs.15/-) Download PDF Document In Marathi. (Rs.15/-)

Partnership agreement between an Individual and a Limited Company This Deed of Partnership Is made at... on this ... day of... between Mr. 'A' residing at ... hereinafter referred to as the 'Party of the First Part' and M/s. A B & Co. Pvt. Ltd., a Company registered under the Companies Act 1956 and having its registered office at ... hereinafter referred to as the 'Party of the Second Part'. Whereas the Party of the First Part owns a large piece of fallow land situated at - and more particularly described In the Schedule hereunder written. And Whereas the said land Is very suitable for carrying on minerals quarrying operations but the Party of the First Part Is unable to carry on the said operations on his own. And Whereas the Party of the Second Part has offered to co-operate with the Party of the First Part in promoting the business of quarrying in the said land. And Whereas the Party of the Second Part has the main object to carry out quarrying operations for acquiring varieties of minerals. And Whereas it is found more convenient to carry on the said business in partnership between the Parties hereto and, therefore, the Parties have agreed to enter into partnership on the following terms and conditions. Now it is agreed by and between the parties hereto as follows: 1.     The Parties hereto agree to carry on the business hereinafter mentioned in partnership on the terms and conditions herein mentioned, in the name and style of M/s... ……………. 2.     The partnership shall commence from the ... day of... and the period of the partnership shall be 'at will'. 3.     The business of the partnership (hereinafter referred to as the 'Firm') shall consist of carrying on quarry operations on the said land by quarrying minerals and selling the same and otherwise dealing with the same. 4.     The office of the partnership shall be at ... The parties may open branches at such other places as they may be agree upon. 5.     The land described in the Schedule hereunder written is valued at Rs... and the said land will be treated as a partnership asset and a contribution of the Party of the First Part to the capital of the Firm. The Party of the Second Part has agreed to bring in an equal amount of Rs... as its contribution to the capital of the Firm. The Party of the First Part will not he bound to contribute any further amount as capital, Whatever additional moneys are required for the business of the Firm the same will be either advanced by the Party of the Second Part as a loan or will be borrowed from any financial Institution or from any other person. The loan advanced by the Party of the Second Part will carry interest at the rate as may be agreed upon and which will not be more than allowed as deduction under the Income Tax Act. If any capital gains tax is required to be paid, by the Party of the First Part for bringing the said land into the assets of the Firm. the same will be paid out of the moneys of the Firm and debited to the capital account of the Party of the First Part. 6.     The Party of the Second Part will be represented by the Managing Director thereof or any other person authorised by him and he will act for and on behalf of the Party of the Second Part in relation to the business of the firm and his acts will be binding on the Party of the Second Part. The Managing Director or other representative nominated by the Second Part will be working or managing partner of the firm and he will be entitled to a remuneration at the maximum rate allowable as deduction under the Income Tax Act. The Party of the First Part will not be entitled to any remuneration. 7.     The net profits and losses of the firm will be shared by the partners hereto in equal shares or proportions. Net Profit will mean gross profit earned in each year less the expenses of the management of the business Including outgoings In respect of the salaries and wages of' the staff, commission paid to others, and all other expenses incurred In connection with the business of the firm, and such other expenses as will be allowed as deduction under the Income Tax Act. 8.     The accounting year of the Firm will be from 1st April to 31st March of each Christian Calendar year. 9.     At the end of each accounting year an account of the business carried on in that year will be made and a statement of accounts namely a Balance Sheet and Profit and Loss account will he prepared and signed by the Partners. If necessary or required by law the Accounts will be got audited by a Chartered Accountant. 10.  The books of accounts and all other record of the Firm will be always kept at the office of the Firm and will be, open for Inspection by any of the partners hereto at any time. 11.  All the working staff such as clerks, peons, accountants, cashier, salesmen and others will be appointed by the joint consent of the Parties hereto and their wages and salaries and other emoluments will be fixed by mutual consent of the parties hereto. 12.  Each of the Parties hereto shall - a.     participate and attend to the business of the firm to the greatest - common advantage of the Firm, the Party of the Second Part participating and attending through Its Managing Director. b.    be just and faithful to each other, c.     render true accounts and full Information of all moneys affecting the Firm to the other, d.    indemnify the Firm for any loss caused to it by wilful negligence or fraud In the conduct of the business, e.     not carry on any business similar to the business of the Firm or any other business anywhere in the district In which the said land Is situate without the consent of the other partner. f.     attend to the business of the Firm diligently and actively, g.    Not withdraw any amount for his own profit benefit or use as remuneration or otherwise without the consent of the other, h.     be entitled to be indemnified by the Firm in respect of payments made and liabilities incurred by him                                           i.    in the usual and proper course of business of the Firm, and                                          ii.    in doing any act for protecting the Firm from loss in emergency. 13.  All the tangible and intangible assets of the Firm Including the said land described In the Schedule hereunder written, the goodwill, stock- in trade, benefit of business licenses and permits, benefits of contracts entered etc. will belong to the parties in equal shares and the property of the Firm shall be used by the Parties exclusively for the business of the Firm. 14.  Every Party shall account for the profit earned from any transaction of the Firm or for the use of the property in business transaction of the Firm. 15.  Any party hereto shall not. without the consent of the other- a.     submit any dispute with any other person to arbitration or com- promise or relinquish the claim, b.    withdraw any suit or legal proceedings filed by the Firm, c.     admit any liability of the Firm. d.    acquire or dispose of any immovable or moveable property, except the stock in trade in the ordinary course of businesses of the Firm. e.     enter into partnership or other business unilaterally with any other person, f.     assign or transfer his or Its share or any Interest in the Firm, g.    admit any person as a partner of the firm, h.     borrow any moneys for or in the name of the Firm, or create any security or charge on the assets of the firm.                                       i.        enter into any contracts except contracts in the regular course of business of the Firm,                                      ii.        (j) stand as a guarantor or surety for any person in the name of the Firm or for and on behalf of the Firm. 16.  If the Partnership is dissolved, an account of the assets and debts and liabilities will be made and after sale of the assets, except the said land, the debts and liabilities will be paid out of the sale proceeds and the balance if any will be divided between the parties in equal shares. The said land as far as possible will be returned to the Party of the First Part. But If the other assets of the Firm, are not sufficient to pay all debts and liabilities then the Party of the First Part will have the option either to take over the said land subject to such liabilities including the amount. If any payable to the Party of the Second Party towards Its share In the assets of the Firm or to allow the said land to be sold for payment of such debts and liabilities and the balance of sale proceeds will be distributed between the parties in equal shares. 17.  If any dispute or difference shall arise between the parties hereto touching the business of the Firm or interpretation of any provision hereof or otherwise, however relating to the Firm and Its business, the same shall be referred to arbitration of a common arbitrator If agreed upon, failing which to two arbitrators one to be appointed by each party to the arbitration and the arbitration shall be governed by the Arbitration & Conciliation Act, 1996. 18.  The parties shall, as early as possible but In any event within the prescribed period get the Firm registered under the Partnership Act, 1932, and under the Indian Income Tax Act, 1961. 19.  This Deed is executed in duplicate and one copy will remain with the Party of the First Part and the other will remain with the Party of the Second Part. IN WITNESS WHEREOF the parties have put their respective hands the day and year first hereinabove written. Signed and delivered by the withinnamed Mr. A in the presence of ... Signed for and on behalf of the Party of the Second Part M/s. A B & Co. Pvt. Ltd., by Its Managing Director, in the presence of ... ... Download Word Document In English. (Rs.15/-) Download PDF Document In Marathi. (Rs.15/-)

JOINT PROMISSORY NOTE Rs.____________ Place__________ Date __________ On demand, (or, ______ months after date) (or, _______days after sight) we hereby promise to pay to Sh. ___________________________________, s/o Sh._________________________________, r/o____________________________________ or order, the sum of Rs.____________ (Rupees ___________________________________________________________________only). Signatures of drawers Name and address of drawers (Stamp) 1. ________________ 2. ________________ 3. ________________ Download Word Document In English. (Rs.5/-)

Form of complaint on behalf of a Banking Company In the Court of…………….. Complaint No………………………..20….. IN THE MATTER OF : ………………………………………(Bank) ……………………………………… ……………………………………… through Shri…………………………. Constituted Attorney Complainant Vs. Shri………………………….. ……………………………… ……………………………… Accused Complaint under section 138 read with section 142 of the Negotiable Instruments Act, 1881 Sir, The complainant most respectfully submits as under : 1. That the complaint is a Banking Company having its Principal office at………….. and a branch office amongst other places in India at………………..The present complaint is being filed through its constituted attorney Mr………………………. who is competent file and conversant with the facts of the present case. Hereto annexed and marked exhibit  A is the copy of the power of attorney. 2. The accused is maintaining current account with the bank and upon his request the Bank was granted overdraft facilities for a period of ……… which has expired on………….. The accused utilized the said facilities and overdraft amount due from the accused as on …………. Constitutes a debt and a liability payable by the accused as per the arrangement with the Bank. The complainant call upon  the accused to clear the overdraft vide its letter dated…………… That the accused had duly received the letter dated………….. sent by the complainant and to clear the overdraft the accused has issued cheque being No…………. dated…………… Rs…………. Drawn on…………….. in favour of the complainant. The said cheques was presented for encashment on……………, the complainant was taken by surprise as the cheque was returned  unpaid by the bankers of the accused with the remarks “Refer to drawer”, vide Bank memo dated………………. The said Bank memo  received by the complainant on ……………….. 3. Thereafter the complainant approached their lawyer who sent a registered notice dated…………….to the accused under Section 138 of the Negotiable Instruments Act, 1881 and call upon the accuse to make the clearance of the outstanding within 15 days from the date of receipt of the notice. The accused duly received the said notice on ……………… but he failed and neglected to make payment within prescribed time. 4. Thus it is clear that the accused have malafide intension and ulterior motive. At the time of issuing the cheque, the accused was fully aware of the fact that on account of insufficiency of the funds or on account of exceeding the amount arranged with the bank, the cheque would be dishonoured. Even after the receipt of the notice under clause (b) of the proviso to section 138, the accused has failed to make the payment. 5. That the complaint is filed under the provisions of the Negotiable Instruments Act, as by means of his aforesaid acts, the accused has rendered himself liable to be prosecuted under the Act. 6. That all provision of Section 138 and 142 are compliance with. To cause of action arose within the jurisdiction of this Hon’ble Court and complaint is being filed within limitation as provide under the Act, this Hon’ble Court can taken cognizance of the offence. 7. It is, therefore, respectfully prayed that the present complaint be registered by this Hon’ble Court and action be initiated against the accused under sections 138 and 142 of the Negotiable Instruments Act, 1881 and the accused be summoned and tried and be punished in accordance with the law for the offence committed by him. Complainant Advocate for Complainant Place : Date  : Download Word Document In English. (Rs.10/-) Download PDF Document In Hindi. (Rs.15/-)

Form of a notice by a sole proprietor partner of a firm/director of a company FROM TO, Dear Sir(s), I have to serve the following notice under section 138 of the Negotiable Instruments Act, 1881, on you being the sole Proprietor of the firm……….carrying on business at…………… as the Partner of the firm M/s…………………being the Managing Director of the Company. 1. That we sold, supplied and delivered the goods as per your requirement and in discharge of your liability you are issued cheque bearing No………………. dated…………………… an Amount of Rs…….……….. drawn on ………………………. Bank ……………. Branch. 2. That the said cheque was deposited our bankers……………. but we are surprised to find that the same has been returned unpaid by your bankers on account of insufficiency of funds in your account with the endorsement “Refer to drawer” since you had failed to provide sufficient funds in your account. 3. That by dishonour of the cheque as aforesaid, you have made yourself liable to the prosecuted under the amended provided of the Negotiable Instruments Act, 1881 and you are hereby to take notice under section 138 of the Negotiable Instruments Act to pay the aforesaid amount of Rs………being the amount of the cheque along with bank charges within 15 days of the receipt of this notice by you, failing which I/We shall be proceeding under the Indian Penal Code, 1860 and under the provisions of the Negotiable Instruments Act, 1881 against you under which you may be punished by imprisonment for a term of one year and with fine which may be to the extent of twice the amount of the cheque or with both. You are also called upon to pay Rs…………. for the cost of this notice. Download Word Document In English. (Rs.5/-) Download PDF Document In Hindi. (Rs.5/-)

Pro-forma complaint by firm/company In the Court of Additional Chief Metropolitan Magistrate………………….Court At…………… ……………….. Complaint No……………… 20……. ……………………… ……………………… Complainant Vs. ……………………… ……………………… Accused Complaint under section 138 read with section 142 of the Negotiable Instruments Act, 1881 MAY IT PLEASE YOUR HONOUR The Complainant above-named most respectfully submit as under : 1. That the Complainant above-named is a registered partnership firm/a company limited registered under Indian Companies Act, 1956 having its registered office at…….. and a branch at………carrying on a business of………., The Complainant is one of its partners/directors duly authorised by firm/company to file this complaint. A copy of resolution/power of attorney is annexed. 2. That the accused above-named is an individual/firm/company carrying on the business of ……., from its office mentioned in the title 3. That the accused above-named had placed the order for supply of goods/requested for the services of the Complainant from the Complainant on…………… A copy of order/letter/communication from the accused is annexed. 4. That the complainant soled supplied and delivered the require goods to the accused and the accused has received the same/rendered the services. A copy of receipt, challan, letter acknowledging debt is annexed herewith. 5. To fulfill the liability the accused issued a cheque bearing No……….. dated……. drawn on ….…….. for Rs………(Rupees…………only) in infavour of the company.  Upon depositing the said cheque was returned/dishonoured by his banker of the accused for the reason ………….. with bank memo dated …………… 6. That thereupon the complaint sent a notice dated……….. to the accused under section 138 of the Negotiable Instruments Act, 1881 by registered post on…….. demanding the amount of cheque. That the said notice was received by the Accused on ………and the accused failed to repay the amount demanded. 7. The Accused issued the cheque knowing fully that he does not have sufficient balance in his Bank account, thus, he has committed an offence under section 138 of the Negotiable Instrument Act. 8.  That the cause of action against the accused has arisen on …….. (date of return) and on……..(last date of period of notice sent by payee earlier) when after expiry of 15 days period granted to the accused, he failed to repay the debt/amount of the cheque. 9. That as the cheque were issued and/or returned at………. it is within the jurisdiction of this Hon’ble Court and the cause of action of file the complaint has arisen within the jurisdiction of this Hon’ble Court, this Hon’ble Court can take cognizance of the offence. 10. It is, therefore, most respectfully prayed that this complaint be registered by this Hon’ble court and action be initiated against the accused under sections 138 and 142 of the Negotiable Instruments Act, 1881 and the accused be tried and be punished for the commission of offence above mentioned. Advocate for Complainant Complainant Dated :………… LIST OF WITNESSES 1. Complainant. 2. Manager/Authorised officers from Both the Banks i.e. accused and Complainant. LIST OF DOCUMENTS 1. Copy of Power of Attorney/letter authorising to file complaint. 2. Original Cheque being No………… dated………… 3. Bank return Memo. of Accused and Complainant Bank. 1. Copy of notice dated..…….. 2. Postal receipt, A.D Card, UPC Download Word Document In English. (Rs.10/-) Download PDF Document In Hindi. (Rs.10/-)

COMPLAINT UNDER SECTIONS 138 AND 142 OF THE NEGOTIABLE INSTRUMENTS ACT Download Word Document In English. (Rs.40/-) Download PDF Document In Hindi. (Rs.40/-) IN THE COURT OF CHIEF METROPOLITAN MAGISTRATE.................... Shri.................... s/o.................... R/o.................... ................................................................... Complainant versus .......................................................................... Accused Complaint u/ss. 138 & 142 of the Negotiable Instrument Act, 1881 as amended by Act 66 of 1988. The complainant respectfully submits as under: — 1. That the accused is Proprietor of............................................................. dealing.................... 2. That the accused took loan of Rs..................... from the complainant and executed a pronote on.................... for Rs..................... (A photocopy of the pronote is Annexure.................... ). 3. That the accused issued Cheque No..................... dated.................... for the sum of Rs..................... (Rupees.................... only) drawn on.................... and gave it to the complainant to discharge his liability with respect to the said loan amount/pronote. (Photocopy of cheque is Annexure.................... ). While issuing the said cheque the accused assured the complainant that the cheque will be honoured on its presentation. 4. That the complainant states that the cheque was presented for collection through the complainant’s bank.................... on........................................ and the said cheque was returned on.................... as unpaid due to insufficiency of funds in the account of the accused in the bank with a memorandum ‘refer to drawer’. (Photocopy of the memorandum of the bank is Annexure:.................... ). The accused had thus dishonest and guilty intention right from the beginning at the time he issued the aforesaid cheque. 5. That the complainant immediately thereafter contacted the accused and apprised him about the dishonouring of the cheque but the accused did not pay any heed. 6. That the complainant states that within fifteen days of the receipt of his information from the bank regarding dishonour/the return of the cheque as unpaid, he send a registered AD and U. P. C. notice dated................... through his lawyer .................... to the accused on.................... vide postal receipt No..................... dated .................... (Post Office.................... ) calling upon the accused for payment of the said amount alongwith interest due on the dishonoured cheque within fifteen days from the date of the receipt of the notice. The accused acknowledged the receipt of the said notice vide acknowledgement due. (The photostat copies of the postal receipt of the Registered A. D. Letter/U. P. C. and the A. D. Card are Annexures..................... The photostat copy of the legal notice is Annexure.................... ). The accused having received the notice on..................... has failed to make payment within fifteen days of the receipt of the legal notice. That the accused is deemed to have received the Notice on.................... as the Notice was sent under Registered A/D and as well U. P. C. on.................... The accused having received the notice on.................... has failed to make payment within fifteen days of the receipt of the legal notice. 7. That the complainant submits that accused had issued the cheque without sufficient funds in his bank account. Therefore the accused committed the offence u/s. 138 of the Negotiable Instrument Act, 1881 as amended by the Act 66 of 1988 and is liable to be punished. 8. That the complainant further submits that the Accused intentionally induced the complainant to render loan assistance/to him with preintention not to pay and thereby has cheated the complainant & committed offences u/ss. 415 and 420 of I. P. C. 9. The cause of action for the present prosecution arose on the 16th day i. e. .................... after the expiry of 15 days of receipt of the aforesaid legal notice, and due to non-payment of the amount by the accused. 10. That the complainant further submits that he has filed the complaint within one month from the date of expiry of the fifteen days time given under the law for the payment of the said money. The said cheque was issued at..................... presented at the.................... where the cheque was returned as unpaid by complaints Bank and so this Hon’ble Court has jurisdiction to take cognizance of the offence. 11. The accused has thus committed the offences punishable under Sections 415 & 420 I. P. C. and Section 138 of the Negotiable Instruments Act, 1881, as amended in 1988. The complainant, however, chooses to prosecute the accused only for the offence under Section 138 of the Negotiable Instruments Act an amended because of the said remedy being more efficacious and speedier. It is, therefore, prayed that the accused may be summoned to face the trial under Section 138 of the Negotiable Instruments Act, 1881, as amended in 1988, tried and punished thereunder in accordance with law. It is also further prayed that this Hon’ble Court may be pleased to order for the payment of the compensation out of the fine amount u/s. 357 of Cr. P. C. read with S. 117 of Negotiable Instruments Act to the complainant as follows: (1) Cheque Amount Rs. ....................... (2) Bank Service Charge Rs. ....................... (3) Notice Charge Rs. ....................... (4) Advocate’s Fees Rs. ....................... (5) Interest Amount (upto........) Rs. ....................... Total Rs......................... (plus interest @......... till payment Dated at .................. this ............... day of.................... CASE LAW S. 138 Negotiable Instruments Act QUASHING OF COMPLAINT ON GROUND THAT COMPLAINT DID NOT DISCLOSE DATE ON WHICH NOTICE SERVED. Mere fact that date of delivery of notice under Section 138 Clause (c) of proviso of Negotiable Instruments Act is not mentioned in the complaint does not affect maintainability of complaint.1 DISHONOUR OF CHEQUE (SECTION 138 OF N. I. ACT) The offence under section 138 of the Negotiable Instruments Act, can be completed only with the concatenation of a number of acts. Following are the acts which are components of the said offence: - (1) Drawing of cheque. (2) Presentation of cheque to the Bank. (3) Returning the cheque unpaid by the drawer bank. (4) Giving notice in writing to the drawee of the cheque demanding payment of the cheque amount. (5) Failure of the drawer to make payment within fifteen days of the receipt of notice.. It is not necessary that all the five acts should have been perpetrated at the same locality. It is possible that each of those five acts could be done at five different localities. But concatenation of all the above five is a sine qua non for the completion of the offence under section 138 of the Act.2 NOTICE — SERVICE OF Service of notice of demand in clause (b) of the proviso to section 138 of Negotiable Instruments Act, 1881 is a condition precedent for filing a complaint under section 138 of the Act.3 NOTICE OF DEMAND (SECTION 138 PROVISO (B)) A notice cannot be faulted if in addition to "cheque amount" any other sum by way of interest, cost etc. is separately indicated.4 1. S. K. Trading & Co. v. Beerbal Dass Jindal, 1996 (3) Crimes 8 (All). 2. K. Bhaskaran v. Sankaran Vaidhyan Balan, AIR 1999 SC 3762. 3. Central Bank of India v. M/s. Saxons Farms, AIR 1999 SC 3607. 4. Suman Sethi v. Ajay K. Churiwal, AIR 2000 SC 828. DISHONOUR OF CHEQUE — COMPLAINT OF Mere presentation of the complaint in the court cannot be held to mean that its cognizance had been taken by the Magistrate.5 DISHONOUR OF CHEQUE — PROSECUTION OF COMPANY The winding up proceedings of a company do not render debt unenforceable.6 DISHONOUR OF CHEQUE — COMPANY DECLARED SICK The fact that the company has been declared sick before expiry of period for payment of cheque amount does not save it or its directors from criminal prosecution.7 Complaint under section 138, Negotiable instruments Act can be filed by power of attorney holder of payee. It is obligatory on court under Section 139 of Negotiable Instruments Act to raise presumption in every case where factual presumption has been established.8 Proceedings under Section 138 Negotiable Instruments Act cannot be quashed in a petition under Section 482, Cr. P. C. on a plea that petitioner director of the accused company had resigned much prior to cause of action had arisen for the case.9 To prosecute a director of company for offence under Section 138 of Negotiable Instruments Act a bald allegation by merely repeating those words mentioned in Section 141 of the Act would not be enough and there must be something more clearly stated in complaint.10 In a prosecution under Section 138/141 of Negotiable Instruments Act where cheque has been issued by a partnership firm, all the partners are not liable for prosecution on a contention that their liability was joint but only those partners could be prosecuted who were in charge of and were responsible for conduct of business of firm.11 Cause of action for filing complaint under Section 138 of Negotiable Instruments Act arises only once and time for filing complaint would start running from the date of service of notice issued under Section 138(b) of the Act.12 5. Narsingh Das Tapadia v. Goverdhan Das Partani, AIR 2000 SC 2946. 6. Pankaj Mehra v. State of Maharashtra, AIR 2000 SC 1953. 7. Kusum Ingots and Alloys Ltd. v. Pennar Peterson Securities Ltd., AIR 2000 SC 954. 8. Y. Sreelatha @ Roja v. Mukanchand Bothra, 2002 (2) Crimes 19. 9. Smt. Sunaina R. Mathani v. National Capital Territory of Delhi, 2002 (2) Crimes 61. 10. Neeta Bhalla (A-4) v. S. M. S. Pharmaceutical Ltd. Hyderabad, 2002 (2) Crimes 89. 11. Punjab State Coop. Supply & Marketing Federation Ltd. v. M/s. Malerkotla Rice Mills, 2002 (2) Crimes 178. 12. Mohammed Jakeer v. Ch. Koli Reddy, 2002 (2) Crimes 188. Bouncing of cheque with remarks drawer’s signature incomplete would also attract offence under Section 138 of Negotiable Instruments Act.13 Once notice under Section 138 of Negotiable Instruments Act has been sent by regd. post on the correct address and is returned with an endorsement that "party was not available" it shall be deemed to have been served.14 The complaint filed under Section 200, Cr. P. C. or under Section 142 of the Negotiable Instruments Act would not ipso facto terminate or abate upon the death of the complainant and his LRs., their agents or power of attorney holder could be permitted to prosecute the complaint under Section 302(2), Cr. P. C. or under Section 142 of the N. I. Act.15 Cheque drawn for a loan four years prior to the issuance of cheque does not cease to be legally enforceable for a complaint under Section 138 of the Negotiable Instruments Act, 1881.16 Cheque given by accused in favour of bank for issuance of Demand Draft in favour of complainant for amount payable to complainant will make complainant payee of cheque and on dishonour of cheque, complainant was competent to maintain complaint under Section 138 of Negotiable Instruments Act.17 A cheque which has become invalid because of the expiry of the stipulated period could be made valid by alteration of dates.18 A state cheque can be revalidated by drawer. Change in date with consent is not material alteration. Whether change in date was voluntary or involuntary is a question of fact which has to be established by evidence. High Court was thus wrong in quashing complaint on alleged change in dates of earlier dishonoured cheques.19 13. Vinod Tanna v. Zaheer Siddiqui, 2002 (1) Crimes 104. 14. M/s. VIF Airways Ltd. v. M/s. Aishu Finance Ltd., 2002 (2) Crimes 205. 15. Jimmy Jahangir Madan v. Mrs. Bolly Cariyappa Hindley, 2002 (1) Crimes 291. 16. A. V. Murthy v. B. S. Nagabasavanna, 2002 (1) Crimes 306 (SC). 17. Ram Kasyyap Chits Pvt. Ltd. Visakhapatnam v. Chinnam Krishna Murthy, 2002 (1) Crimes 673. 18. Veera Exports v. T. Kalavathy, AIR 2002 SC 38. 19. Veera Exports v. T. Kalavathy, 2002 (1) Crimes 123 (SC). IN THE COURT OF......................................... Complaint No......................... of 200 In the Matter of: - AB............................................................. Complainant versus CD.................................................................... Accused APPLICATION FOR RECALLING THE SUMMONING ORDER DATED ........................ ON BEHALF OF ACCUSED/APPLICANT Most Respectfully Showeth: - 1. That vide order dated........................ this Hon’ble Court was pleased to issue process to the applicant for an alleged offence under section 138 N. I. Act, 1881. 2. That the said order of summoning the applicant as an accused is bad in law on the following amongst other grounds and is liable to be recalled: - GROUNDS a. Because the complaint is barred by limitation as per record produced by the Complainant, the bank’s intimation/advise regarding return of cheque is dated........................ and the notice under section 138 N. I. Act was to be given within 15 days from ................................................ but the alleged notice is purported to be dated................................................ and was sent on........................ which on the face of it is beyond the prescribed period of limitation provided under section 138 N. I. Act and as such the Complaint is incompetent and liable to be dismissed on this ground alone. b. Because a perusal of the Complaint would show that there is no allegation whatsoever as to on what date the alleged notice dated ........................ was allegedly delivered to the applicant and when the cause of action arose to the complainant for filing the complaint, in the absence of it is settled law that cause of action for maintaining a Complaint under section 138 N. I. Act, arises on the failure of the addressee to pay the demanded amount within 15 days from the receipt of the notice. In this case admittedly no notice was ever served upon the applicant. c. Because the Complainant is alleged to have sent the alleged notice on two addresses: - (1) ....................... (2) ....................... The Complainant have however filed one envelope addressed at address No. 1 stated above, and which contains a remark "Refused" dated......................... It is pertinent to point out that the said envelope does not contain any Postal Stamp of any post office which shows that the envelope filed with the complaint is manipulated one and the envelope sent to post office has been replaced by the envelope filed in the Complaint and the Complainant is guilty of an offence of perjury for which the applicant reserves right to file an application under section 340 Cr. P. C. relating thereto. d. Because the alleged notice dated........................ is purported to have been sent on........................ at the address ................................................ and is purported to have been refused en.......................... However the Complainant has not examined anyone from the Postal Department to prove that it was refused by the addressee. It is respectfully submitted that the applicant is not residing at the address................................................ at which address there are number of shops and it is not the exclusive address of the applicant place of business. e. Because neither in the Complaint nor in the statement of the complainant it has been averred or stated as to what was the fate of the alleged notice said to have been sent at the address f. Because there is not an iota of evidence of the Complainant being partner of applicant which assertion is falsified from the very fact that the alleged cheque itself shows that the applicant was sole proprietor of the firm and the cheque in question was without consideration whatsoever. In this connection it is submitted that the Complainant who used to visit the applicant frequently. During one such visit, when the applicant needed money urgently and the closing hour of the bank was nearby, the applicant hurriedly signed a cheque and gave it to the Complainant who offered to get the same encashed by going to the bank. The Complainant came back within 15 minutes and handed over the cash................................................ to the applicant. It now transpires that he retained the cheque fraudulently and dishonestly by filling it up of the sum filed by him and has now filed the present Complaint for dishonest gain. 3. That this Hon’ble Court passed the summoning order without taking into the aforesaid important facts which go into the root of the matter and ning order is bad in law far it does not give any reasons for coming to the prima facie that an offence under Section 138 N. I. Act had been made out. PRAYER It is therefore prayed that this Hon’ble Court may be pleased to recall summoning order dated......................... and drop the proceedings against applicant. This Hon’ble Court may be pleased to pass such further order(s) as ma complete justice on the facts and circumstances of the case. Applicant/ Accused Through Advocate Place:................ Dated:................. IMPORTANT NOTE CHANGES MADE BY THE NEGOTIABLE INSTRUMENTS (AMENDMENT AND MISCELLANEOUS PROVISIONS) ACT, 2002 WITH EFFECT FROM 17. 12. 2002 (1) The period of notice by the payee to the drawer has been increased from fifteen to thirty days. (Section 138) (2) Punishment prescribed under the Act has been increased from one year to two ye (Section 138) (3) Person nominated as a director of a company by virtue of his holding any office employment in the Central Government or State Government or a financial cor ration owned or controlled by the Central Government or the State Government, the case may be, shall not be liable for prosecution under Section 141 of the (Section 141) (4) Discretion has been vested in court to waive period of one month for taking cog zance of the case under the Act, if complainant satisfies the court that he had su dent cause for not making a complaint within such period. (Section 142) By the Amendment Act 2002 Sections 143 to 147 have been insertedto provide for— (a) Summary trial of the cases with a view to speed up disposal of cases and the Mar trying an offence empowered to pass sentence of imprisonment for a ter ing one year and amount of fine excreding five thousand rupees; (Sec (b) Procedure for service of summons to the accused or witness by the post or by such courier services as are approved by a Court of. 144) (c) Evidence of the complainant on affidavit and on application of summon and examine any person giving evidence on affidless. tained therein; (Section 145), (d) Bank’s slip or memo prima facie evidence of fact of dishonour of cheque unless and until such fact is disproved; (Section 146) (e) Offence under the Act compoundable; (Section 147) **********

Notice u/s 138 of the negotiable instruments act ADVOCATE'S NAME.............................................................PARTY'S NAME ADDRESS.................................................................................ADDRESS Dated................. Notice (by registered a.d.) To Shri …………………… Sir, Under instructions from and on behalf of my client, Shri ……… Mumbai ………, I have to address you as follows: 1. That my client and yourself happened to be old friends, and as such the relationship between you two has been established for a very long time. 2. That my client has been running his business in readymade clothe; and hosiery in Mumbai city. 3. That the business of my client is that of a wholesaler, and he supplies clothes and hosiery to various businessmen in and around the city. 4. That recently, you have also started your business in readymade clothes and hosiery as a retailer having a shop in the suborn of the city. 5. That since the beginning of your business, you used to purchase ready clothes and hosiery from the shop of my client on credit basis and you also used to make the payment for the same within a period as agreed by and between my client. 6. That my client says that you had been regular and punctual in making the payment for the materials purchased by you from the shop of my client, and every time, you used to issue cheques towards the payment of bills on that account. 7 That the last time, on................., you had purchased the material for Rs.50,000/- and issued in favour of my client a cheque for that amount. That my client, as usual, presented the said cheque to his banker, Bank of Maharashtra, Karve Road Branch, on.................for encashment. 8. That, however, the Bank has returned the said cheque to my client with an endorsement "Dishonoured for insufficient balance". That since the said cheque has been dishonoured for the reason of "Insufficiency of funds", you may be held liable civilly as well as criminally particularly under section 138 of the Negotiable Instruments Act and provisions of the Code of Civil Procedure. 9. That my client does hereby call upon you to make the payment of the said amount of Rs. 50,000/- within fifteen days from the receipt of this notice, failing which my client will be constrained to take against you an appropriate legal action including filing of a criminal complaint, which please note. 10. That since your illegal behaviour has necessitated the issue of this notice, you are hereby charged with its costs, i.e. Rs. 1,500/-, which also please further note. Yours faithfully, [ Harshad Badhbade] ADVOCATE. Download Word Document In English. (Rs.10/-) Download PDF Document In Hindi. (Rs.10/-)

Notice u/s 138 of the negotiable instruments act & sec. 420 of the Indian penal code Advocate Address Party's Name Address Dated Notice (by registered a.d.) To Smt…………………………………………… Madam, Under instructions from and on behalf of my client, Shri ……………………………… Mumbai …………, I have to address you as follows : 1. That on account of some acquaintance of my client with your husband, Shri ……….., my client has had occasions to know and meet you. 2. That since you have been running business under the name and style as Everest Tours & Travels, you proposed to expand the said business. 3. That for the said purpose of the expansion of your business, in December 2009, you were in need of more finance, and through the good offices of your husband, you made my client to pay you an amount of Rs. 40,000/-. 4. That taking into consideration the relationship between my client and your husband, my client paid to you an amount of Rs. 40,000/ - in cash, as detailed below: Rs. 40,000/- 5. That at the time of the payment of the said amounts by my client, you had promised him that the amount paid by my client would be repaid and refunded to him within a short time, say within a year or so. 6. That in spite of your promise to return the said amount unto my client, you failed to do so, and at the time of every demand to you, you have only gone to postpone the promises. 7. That with a view to making the repayment of the said amount untomy client, you have finally issued in his favour a cheque bearing No. 048060, dated  15.7.200.., for Rs. 40,000/-, drawn on the Vidya Sahakari Bank Limited, Aundh Road Branch, Mumbai.. 8. That when my client presented the said cheque to his bank, Cosmos Cooperative Bank Limited, Laxmi Road Branch, Mumbai, on 15.7.2009, the said Bank returned the said cheque with remarks "Refer to drawer". 9. That in the mean time, your husband had already contacted my client with  a request to re-present the cheque to the Bank, saying that there was no necessary balance in your account and that immediate arrangements would be made so as to clear the cheque in favour of my client. 10. That accordingly my client again presented the said cheque to the Bank for encashment on 25.7.2009, but the said cheque was dishonoured. 11. That from the total behaviour on your part with respect to the said transaction, my client has come to a tacit conclusion that when the Bank of my client has returned the said cheque to my client, while issuing the said cheque, you already had dishonest intention to cheat my client of the said amount,  and it was also a case of "Dishonoured for insufficient balance". 12. That, thus, the cheque which was issued by you in discharge of your liability has been dishonoured for the reason of insufficiency of funds. 13. That since then, my client has been making efforts to contact you personally, but you could not be available anytime anywhere, and hence, my client has come to the final conclusion that you have some ulterior motive to the effect that you are not sincere in making the repayment of the amount taken by you from my client. 14. That from the total behaviour on your part, my client has drawn a clear inference that you have done so with a view to deceiving and cheating my client, and you did not bother either for the dishonourof cheque or then making yourself available immediately. 15. That it also appears that your intentions were not good when you issued the said cheque for the amount which you did not have in your account, and since you knew it very well, you have tried to commit not only a civil breach but also a criminal offence within the provision, meaning and interpretation of civil as well as criminallaw. 16. That since the said cheque has been dishonoured for the reason of "Insufficiency of funds", you may be held liable civilly as well as criminally particularly under section 420 of the Indian Penal Code, section 138 of the Negotiable Instruments Act and provisions of the Code of Civil Procedure. 17. That under the circumstances, you are hereby called upon to pay unto my client an amount of Rs. 40,000/- (Rupees Forty Thousand only) together with interest @ 15% per annum, WITHIN FIFTEEN DAYS from the receipt of this notice, failing which my client will be constrained to take against you an appropriate legal action including filing of a criminal complaint, which please note. That since your illegal behaviour has necessitated the issue of this notice, you are hereby charged with its costs, i.e. Rs. 2,100/-, which also please further note. Yours faithfully, ADVOCATE. Download Word Document In English. (Rs.15/-) Download PDF Document In Hindi. (Rs.15/-)