Deed of Partnership between two Partners by Shiva.

Deed of Partnership between two Partners

DEED OF PARTNERSHIP made the . . . . . . . . . . day of. . . . . . ., 20. . . . . ., BETWEEN A. B., aged. . . . . . .years, son of. . . . . . . . . , resident of . . . . . . . . . . , hereinafter called the ‘‘First Party’’ AND C. D., aged. . . . . . .years, son of . . . . . . . . . . , resident of. . . . . . . . . , hereinafter called the ‘‘Second Party’’ WHEREBY it is agreed as follows:

1. The parties shall become and be partners, under the firm name of ‘‘C and D Co.’’ as from the . . . . . . . . . . day of . . . . . . . . . . , 20 . . . and shall carry on the business of . . . . . . . . . .

2. The duration of the firm shall be, to begin with, a period of . . . . . . . . . . years or for such further or lesser period as the parties may choose to mutually agree.

3. The registered office of the firm shall be at . . . . . . . . . . or such other place or places as the partners choose to.

4. The capital of the partnership shall be the sum of Rupees. . . . . . (Rs . . . . . . .) only, or such other sum as the partners may mutually agree AND shall be contributed by the parties equally.

5. The partners shall distribute the profits and bear the losses in equal shares.

6. The partners shall be entitled to withdraw out of the profits, money not exceeding Rs . . . . . . . . . . in each month adjustable against the account of the respective partners at the time of annual accounting.

7. The First Party shall make available to the firm the shop or premises in which the business of the firm shall be carried on, situate at . . . . . . . . . . Road . . . . . . . . . . and which said shop or premises is in his occupation as a tenant from month to month paying a monthly rent of Rs . . . . . . . . . . to Shri . . . . . . . . . . and shall hereafter hold the said shop or premises in trust for the partnership for which he shall be paid out of the partnership the said monthly rent of Rs . . . . . . . . . as from the date mentioned in Para 1 above.

8. The said rent and all taxes, duties, repairs and outgoings in respect of the said shops or premises or other place or places of business of the partnership shall be paid out of the partnership.

9. No apprentice, clerk or servant shall be employed or dismissed without the consent of the partners and all premiums and fees taken or paid shall be profits or expenses of the partnership.

10. The partners shall cause all usual accounts and entries to be kept and made in proper books, and together with all securities, vouchers and such books shall be kept at the registered office of the partnership and be open to inspection of each partner.

11. Immediately after each . . . . . . . . . . day of . . . . . . . . . . in every year, the partners shall take an account and valuation of the effects, credits and liabilities of the partnership. Such accounts and valuation shall after mutual examination be drawn up in duplicate and signed by the partners, who shall each retain a copy. The entries in such signed accounts shall be final and binding as between the partners. The profits or losses, as the case may be, be divided as aforesaid after the signing of such account.

12. The authority of the partners individually shall be limited to the following:

(a)   No partner shall individually purchase goods for the partnership without consulting the other and obtaining his consent for purchases of the value exceeding Rs. . . . .

(b)   No partner shall singly bind the partnership by taking any loan or raising any money whether with or without security to the extent of more than Rs . . . . . .

(c)   No partner shall commit the partnership, without obtaining the written consent of the other, to any undertaking which involves the partnership financially to the extent of more than Rs. . . . . .

(d)   All lawsuits shall be filed and defended by the partnership by the partners acting jointly in all cases which involves the partnership financially to the extent of more than Rs. . . . . .

13. The partnership shall be deemed to be continuing on the admission of a fresh partner or partners: Provided the admission is on the terms herein laid down and is approved by all the partners.

14. Every partner shall be entitled to dissolve the partnership. The partnership may be dissolved by a notice in writing sent by registered post to the address herein given or such address as may be registered from time to time with the Registrar of Firms.

15. On the bankruptcy of any partner or on notice being given to either partner under Clause 14 above or on the death and there being no major legal representative willing or capable to take the place of the deceased partner the partnership shall terminate. The share of such partner may be purchased by the remaining partner at a valuation to be made by arbitrators or their umpire as hereinafter mentioned. The price shall be paid in 3 equal six-monthly instalments. The tenancy right of the First Party shall be valued at . . . . . . . . . . years’ rental.

16. Upon the determination of the partnership by efflux of time, or upon its determination by any other means if the option to purchase is not exercised by any other partner then, as soon as convenient, a full and general account of valuation shall be taken of the property and assets and liabilities of the partnership and the property and assets put to sale and the debts realised and the credits paid. The net proceeds in cash shall be equally divided between the then partners or the partners and the legal representative or representatives of the deceased partner: PROVIDED always, that if the proceeds are less than the liabilities the loss shall be made good in equal shares by the then partner, or the legal representative or representatives of any deceased partner.

17. If at any time any dispute, doubt or question shall arise between the partners, or their representatives either on the construction of these presents, or respecting the accounts, transactions, profits or losses of the business, or otherwise in relation to the partnership then every such dispute, doubt or question shall be referred to arbitrators chosen by each of the partners and the representatives or other umpire to be appointed in the manner provided by law and such reference shall in all respect, as to the mode and consequence thereof conform to the provisions in that behalf contained in the Arbitration Act, 1940, or any statutory modification thereof.

IN WITNESS whereof the said A. B. and C. D. have hereto at . . . . signed the day and the year first abovementioned.

Witness:                                                                       Sd. A. B.

Sd. C. D.

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