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 unanimously decide.
4. That the partnership shall commence
with effect from determinable as
provided hereinafter……………........and shall continue at the will of the of the
partners
5. That the profit of the partnership
business or 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 of the business and shall not be removed from that place
without 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 its profit at, such rates as may be
decided by the partners before the closure accounts each year.
9. That the Annual Account of the
Partnership shall be taken on 31st 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 he 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 calendar 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 of books profit of the firm in terms of
section 40(b) of the IncomeTax 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 whichthe decision of the partners arrived at each year prior to
the closure of the of remuneration and commission payable to the working
partners above and also the rate at which interest as per clause 8 above S on
the quantum
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 as this Deed of Partnership.
18. That in respect of matters not
specifically dealt Deed of Partnership no party shall be 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
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