DEED OF PARTNERSHIP
THIS INDENTURE OF PARTNERSHIP made and entered into at Mumbai, on _______ day of ______________ BETWEEN:
(1)_____________________,Adult, Indian, residing at _________________ _____________________________________________________________________ hereinafter called "THE FIRST PARTNER" context thereof shall include and be deemed to include his heirs, executors, administrators and assigns) of the FIRST PART.
(2) _______________________________________, Adult, Indian, residing at ________________________________________________ hereinafter called "THE SECOND PARTNER" (which expression unless it be repugnant to the meaning or context thereof shall include and be deemed to include his heirs, executors, administrators and assigns) of the SECOND PART.
(3) __________________________________________, Adult, Indian, residing at _____________________________________________ hereinafter called "THE THIRD PARTNER" (which expression unless it be repugnant to the meaning or context thereof shall include and be deemed to include his heirs, executors, administrators and assigns) of the THIRD PART.
(4) ___________________________________, Adult, Indian, residing at _____, ________________________________________________ hereinafter called "THE FOURTH PARTNER" (which expression unless it be repugnant to the meaning or context thereof shall include and be deemed to include her heirs, executors, administrators and assigns) of the FOURTH PART.
The parties hereto of the FIRST, SECOND PART, THIRD and FOURTH have agreed to carry on business in partnership in the firm name and style of _________________ with effect from _______day of ______________.
NOW THIS INDENTURE WITNESSETH that the parties above named do hereby record that since they have become partners and mutually covenant and agree to carry on the said business in future in co-partnership upon and subject to the terms and conditions and stipulated herein below: -
1. The parties hereto state and declare that the business of the partnership shall be carried on under the firm name and style _______________________ or in such other name or names as all the partners hereto may determine from time to time.
2. The partnership business shall commence from _____ day of __________ and shall be "AT WILL".
3. The business of the partnership shall be carried on at _____________________, ____________________________________________ or such other place or places at the parties hereto may from time to time determine.
4. The business of the partnership shall be _____________________________business or businesses as the partners hereto may decide from time to time.
5. a) The Capital of the Partnership Firm shall be Rs. _____________/- (Rupees ______________________ only), which shall be contributed by the partners in their Profit or Loss sharing ratio. The additional funds required for the purpose of the partnership business shall be introduced or contributed by the partners in such manner as may be mutually agreed upon and shall be credited to their current account. The interest at the rate of 12% p. a. simple interest shall be payable to the partners on their capital and/ or current or loan account in the terms of the provisions of section 40(b) and other applicable provisions of the Income Tax Act which may be amended from time to time. All such changes in the terms of amendments in the Income Tax Act shall be deemed to have been authorized by this Partnership Deed. The partners shall be at liberty to reduce the above said rate of interest from time to time. Partners may agree by mutual consent to waive or reduce the rate of interest payable to them in the case of losses or of small profits or because of difficult of funds position of the business of the firm.
b) The partnership firm may also borrow from time to time, from persons, firms, companies or banks such money, as may required for the purpose of the business as deposits loans at an agreed rate of interest.
6. REMUNERATION TO PARTNERS :
It is agreed by and between the partners hereto that the following partners (hereinafter referred to "As Working Partner") who are devoting their time and attention in the conduct of the affairs of the firm, as the circumstances and business needs may require shall be paid remuneration as follows.
i) MR. _________________________ Rs. ___________ p.m.
ii) MR. _________________________ Rs. ____________ p.m.
iii) MR. _________________________ Rs. ___________ p.m.
The Total remuneration payable to the Working Partners shall be worked out as under: -
a) In case of loss or book Rs. 50,000/- or 90% of
profit upto Rs. 75,000/- the book Profit
for the year. whichever is higher.
b) On the amount of book profit 60% of the excess over
exceeding Rs. 75,000/- but Rs. 75,000/-
not exceeding Rs. 1,50,000/-
for the year.
c) On the book Profit exceeding 40% of the excess over
Rs. 1,50,000/- for the year. Rs. 1,50,000/-
7. The total remuneration/ salary, bonus, commission payable to the working partner shall be worked out as per limit laid down by section 40(b) of the Income Tax Act, 1961. All such changes in terms of the amendments in the Income Tax Act shall be deemed to have been authorized by this Partnership Deed.
8. The remuneration, salary if any payable to the working partners as above shall be credited to their respective current account at the end of the accounting year, on ascertainment of books profits. The partners shall be entitled to increase reduce or waive the above remuneration/salary to the other partner and partners. The parties hereto may also agree to revise the mode of calculating the above remuneration/salary and decide to pay salary and grant other benefits.
a. It is agreed that the partners shall be entitled to withdraw reasonable amounts, from time to time during the year for their household requirements as also for life Insurance and personal taxes etc. All such withdrawals shall be debited to the current account of the respective partners.
b. It is further agreed that the salaries / remuneration determined as payable to working partners. Interest or capital of the partners and the share of the profits / losses as the case may be shall be credited / debited to the current account of the partners.
9. The net profits of the partnership business after deducting interest and remuneration payable to the working partners in accordance with the clause of the Deed of Partnership shall be divided and distributed between the partners on the close of the accounting year in the following ratio :-
i) MR. ______________________________ ____%
ii) MR. ______________________________ ____%
iii) MR. ______________________________ ____%
iv) MR. ______________________________ ___%
10. The bank account or accounts of the partnership business shall be opened with such scheduled or non-scheduled bank as the parties hereto decided from time to time and the said account/accounts of the partnership business shall be operated by the signature of any / two partner's.
11. The usual books of accounts of the partnership business shall be regularly and properly maintained and posted up and each party have free access to them and shall be at liberty to take extract there from as the partners of his agent may think necessary.
12. All the accounts of the partnership shall be made up and settled from 1st April to 31st March every year. A Balance Sheet and Profit and Loss Account of the Partnership shall be prepared after making due allowance for recouping any loss in capital and immediately after preparation of the said Balance Sheet, the net Profit or Loss shown by such accounts shall be credited or debited in proportion to their share in profits/loss of the partnership business as aforesaid.
13. If any of the partners are desirous of retiring from the partnership business, he shall be required to give at least three calendar months previous notice in writing in that behalf to other partners or leaving the same at the place where the partnership business is being carried on.
14. None of the partners shall do any act that may prejudice the rights of the other partners.
15. The partner shall :-
(a) Punctually pay his separate debts and indemnify the other partners and the assets of the against the same and full expenses on account of the firm.
(b) Forthwith pay all moneys, cheque and negotiable instruments received by him on account of the firm.
(c) Be just and faithful to each other and at all times give such other full information and truthful explanation of the matter relating to the affairs of the partnership and afford any and/or every assistance in his power in carrying on the business for their mutual advantage.
16. Neither party will without the consent of the other partners :-
(a) Lend any of the partnership money or give credits to any person and persons whom the other partners have previously in writing forbidden him to trust.
(b) Mortgage or change his share in the assets of the profit of the firm.
(c) Give any security of promise for the payment of the money promissory note on account of the firm except in ordinary course of the business.
17. That any party committing breach of any of the foregoing stipulations shall indemnify others from all losses and expenses on account thereof.
18. In the event of death of any of the partners hereto during the continuance of the partnership. The partnership is deemed to have been continued by the remaining partner, remaining partners shall admit one of the heirs of the deceased partner provided any heir is willing to join as such.
19. In the event of the partnership being dissolved or terminated on account of any of parties hereto retiring from the partnership business or for any reason whatsoever, the remaining partners or the partner as the case may be, shall be entitled to continue the partnership business and the account of the partnership shall be made up, adjusted and completed as soon as possible.
20. The goodwill, tenancy rights, outstanding, agencies (if any) quote rights whatsoever, all benefits, other privileges and interests shall be the property of the firm.
21. All disputes which may arise out of in relation to or in connection with or under or in respect of them and the legal or personal representative of the other or between their respective representative and whether during or after or after the determination of the partnership and whether in relation to interpretation of this deed or to any act of omission of either party of the dispute or in relation to any matter touching or concerning with the affairs of the partnership shall be referred to Arbitration in accordance with the provisions of the Indian Arbitration Act for the time Being in force.
IN WITNESS WHEREOF the parties hereto have here unto set and subscribed their respective signatures on the day and the year first herein mentioned.
SIGNED, SEALED AND DELIVERED by the )
within named party of the FIRST PART )
MR. ______________________ )
in the presence of ............. )
SIGNED, SEALED AND DELIVERED by the )
within named party of the SECOND PART )
MR. ________________________________ )
in the presence of ............. . )
SIGNED, SEALED AND DELIVERED by the )
within named party of the THIRD PART )
MR. __________________________ )
in the presence of .............. . )
SIGNED, SEALED AND DELIVERED by the )
within named party of the FOURTH PART )
in the presence of ............ )