Partnership Deed
1 | 26 | 0 | 0 | 0

This is partnership deed between two partners having 50% share in partnership. the deed covers all the major clauses including objective, taxation aspect, contribution in partnership, loan to partnership by any partner, dispute resolution etc.



 

 

 

 

 

 

 

                                            DEED OF PARTNERSHIP

THIS INDENTURE OF PARTNERSHIP made and entered into at         on this ___ day of            , 2018.

B E T W E E N

(1)        MR.                            , S/o                                        , adult, Indian, Inhabitant having his address at _____________________________________ (which expression shall unless it be repugnant to the context or meaning thereof, include his heirs, executors, administrators, legal representatives and assigns) hereinafter called as the Party of the First Part,

AND

(2)        MS.                                      , D/o                         , adult, Indian, Inhabitant having her address at _____________________________________________________(which expression shall unless it be repugnant to the context or meaning thereof, include her heirs, executors, administrators, legal representatives and assigns) hereinafter called as the Party of the Second Part.

WHEREAS:           

A.   The Parties hereto of the First Part and Second Part are desirous of doing and carrying on the business in partnership of organising workshops, educational talks, tours, heritage walks, events and consultancy services and description in the firm name and style of M/s. _____________________________having their office address at __________________________(hereinafter referred to as “said Firm”) on the terms and conditions mutually agreed by and between them.

B.   The Parties herein agree that the above said firm shall carry business through the above stated office address which solely belongs to Mr.___________________________ (hereinafter referred to as “said Property”).

C.    The Parties hereto are desirous of recording in writing the terms and conditions upon which they shall carry on the said business in partnership.

NOW THIS INDENTURE WITNESSETH AND IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS UNDER :

(1)       DATE OF COMMENCEMENT:

The Partnership business has been and shall be deemed to have commenced as and from date above stated.

(2)       NAME AND STYLE:

The firm name and style of the Partnership business has been mutually decided as and shall be M/s.                               . However the Parties hereto are at liberty to keep any other firm name or names as the Parties hereto may from time to time unanimously agree upon.

(3)       DURATION AND MANNER:

The Partnership is a Partnership AT WILL and shall be determined in the manner hereinafter appearing.

(4)      BUSINESS OF THE FIRM:

The business of the Partnership shall be that of organising workshops, educational talks, tours, heritage walks, events and consultancy services and any other related business or businesses as may be agreed upon by the parties hereto from time to time in the firm name and style of M/s.___________________________. However, the Parties hereto shall be at liberty to carry on any other business or businesses as the Parties hereto may from time to time mutually agree upon.

(5)      REGISTERED PLACE OF BUSINESS:

The business of the Partnership shall be carried on at ________________________________________. However, the Parties hereto are at liberty to carry on business activities at such other place or places of business as the Parties hereto may from time to time mutually agreed upon.

 

(6)      CAPITAL OF THE FIRM:

(a)       The capital required for the business of the Partnership firm has been and shall be contributed, arranged or financed by the Parties hereto in such proportions and manner as the Parties hereto may mutually agree upon from time to time. It is agreed between the parties that initial capital of Rs.            /- (Rupees Fifty Thousand only) for setting up the business shall be brought by both the partners proportionately.

(b)       If in addition to the capital contributed by the Partners, any further capital is required for the business of the Partnership firm, the Parties hereto shall be entitled to raise the required capital and finances by way of the Loans, Deposits, Advances and Borrowings from any person or persons, Firms, Companies, Corporations, Banks, Bankers, Associations, Trusts and from any other financing institutions at such rate of interest and on such terms and conditions, as to the security or the repayment as may be available and as it may be in the best interest of the firm, but with the concurrence and signatures of both the partners and only after their unanimous decision in that regard.

 

(7)       REMUNERATION AND INTEREST TO PARTNERS:

Both the parties i.e. the Party of the First Part and Second Part i.e. Mr. Nikhil Kala and Ms. Sakshi Bansal shall be ‘Working Partners’ and shall be responsible for carrying out the day to day functioning /the business of the Partnership firm, day to day management, maintaining of accounts, office bank affairs, purchase and sales of goods and services, recovery of dues, Income Tax and other Tax matters etc. The partners will mutually decide about the work to be undertaken by each of them.

The remuneration payable to working partners shall be :-

                        PARTNER                                                       REMUNERATION

1.         Mr.                                                                                    50% per month

2.         Ms.                                                                                  50% per month

 

The salary will be credited / drawn to the account of each working partner at the end of the month/year/period as may be mutually decided by the partners.

The total remuneration payable to working partners shall be subject to the conditions laid down in section 40 (b) of the Income Tax Act, 1961 and any subsequent modifications and re-enactments thereof :

(i)        In case of loss or book profit upto Rs.3,00,000/- for the year Rs.1,50,000/- or 90% of the book profit whichever is higher.

(ii)       In case of amount of book profit exceeding Rs.3,00,000/- for the year Rs.2,70,000/- plus the 60% of the excess book profit over Rs.3,00,000/.

For the purpose of this clause the expression “Book Profit” shall mean the “Book Profits” as defined in the section 40 (b) of the Income Tax Act, 1961 or any other statutory modification or re-enactment thereof for the time being in force.

In addition to above, it is agreed that the firm may pay interest to the partners on the amount of capital contributed or any loan advanced by them to the firm at the rate of 12% simple interest per annum or at such other rate as may be mutually agreed or as prescribed under Section 40 (b) of Income Tax Act, 1961. Moreover Parties agree to pay interest at the rate of twelve percent per annum against the capital provided by any of these including but not limited to the organization, relatives, friends at the rate of twelve percent only. The Partners may unanimously amend the rate of interest but at no point of time interest per annum shall exceed at the rate of twelve percent.  

The Partners shall be entitled to modify the above terms relating to remuneration, interest etc. payable to the partners by executing a supplementary deed. The supplementary deed when executed shall have effect, unless otherwise provided, from the first day of the accounting period in which such supplementary deed is executed and the same shall form part of this Deed of Partnership.

 

(8)      PROFIT AND LOSS SHARING RATIO:

The profit and losses of the Partnership business as calculated after making the above provisions and normally accepted accounting provisions including loss or losses of capital has been and shall be divided and apportioned between the parties hereto in following proportion and manner:

            SR.NO. NAME OF THE PARTY                                SHARE

1.         MR.                                                                     50% per month

2.         MS.                                                         50% per month

                                                                                                =======

                                                                        TOTAL:          100.00%

                                                                                                =======

(9) BANKERS OF THE FIRM AND OPERATION OF BANK ACCOUNT

 

The Bankers of the Partnership has been and shall be such bank or banks as the Parties hereto may from time to time mutually agree upon. The bank account shall be opened on the name of the partnership firm and the same shall be operated by both the partners and/or the partners have absolute rights to operate, examine and manage the bank account. It is further agreed and clarified that for withdrawal and issue of cheque for releasing the payment from the firm’s account, if the amount is less than Rs.20,000/- (Rupees Twenty Thousand only) than any partner of the partnership firm shall sign the withdrawal slip and/or cheque on behalf of the partnership firm subject to condition that if any partner signs more than five cheques in a month, it should be counter signed by other partner also. In case if the amount of cheque is more than Rs.20,000/- (Rupees Twenty Thousand only), signature of at least  two working partners shall be required.

 

(10)    BOOKS OF ACCOUNTS:

Proper Books of Accounts shall be kept at the place of business of the firm and shall not be removed from the business place without the consent of the Partners. The Partners shall have free access to them at all times and shall be at liberty to inspect, examine and make such extract/s there from as he/she may think fit.

 

(11)    YEAR ENDING:

At the end of every year, accounts shall be taken of all assets and liabilities and of the profit and loss of the Partnership for the previous year and shall be signed by both Partners. Such accounts shall be conclusive and final between the Partners as to all matters stated therein unless manifest error shall be discovered after signing thereof in which case the same error shall be rectified.

 

(12)    DUTIES OF THE PARTNERS:

Each Partner shall:

(a)       When attending to the partnership business, carry it on diligently and to their common advantage.

(b)       When attending to the partnership business, conduct and manage the same in a manner agreed upon by and between them and customary in the business of a like and similar nature and character.

(c)       Indemnify the firm and/or all partners thereof against any loss caused to it by his/her fraud or willful neglect in the conduct of the partnership business.

(d)       Duly and punctually pay and discharge his/her separate and private debts and engagements, whether present or future and keep indemnified the other partners, their estates and effects and the partnership property there from and from all acts, proceedings, costs, claims, and demands in respect thereof.

(e)       Be just and faithful to the partner and at all times give to such other partner full information and fruitful explanation in all matters relating to the affairs and accounts of the Partnership business and afford every assistance in his power in carrying on the business to their mutual advantage.

(f)        Forthwith pay in partnership all moneys, cheques and/or negotiable instruments received by him/her for and on behalf of the partnership firm and credit or get credited the same in the books of accounts of the partnership firm.

(g)       Afford every assistance and co-operation in his/her power and to use his/her power and to use his/her best skill and endeavour in the conduct, promotion and prosecution of the partnership business for the mutual benefit and advantage of all the partners.

 

(13)    CERTAIN ACTS FORBIDDEN TO PARTNERS:

No Partner shall without the written consent of the other partner:-

(a)       Raise any loans or pass or endorse any hundies, negotiable instruments or any other documents for, on behalf or in the name of the firm except in the ordinary course of business.

(b)       Draw, accept or sign any bill exchange or promissory note or contract any debt on account of partnership firm or employ any of the moneys, goods or effects of the partnership firm or engage the credit thereof in any manner or thing except upon the business and for the benefit of the partnership firm.

(c)       Compromise, return, relinquish, release, discharge and/or compound any claim, security or debts due to the firm whether wholly or in part, except upon payment thereof in full.

(d)       Admit any liability or withdraw from or become non-suit or suffer any ex parte decree or ex parte order being passed in any legal or other proceedings against the firm or against the other partner.

(e)       Enter into any partnership with anyone on behalf of the firm.

(f)        Borrow or cause to be borrowed any moneys from others in name of the firm for his/her personal needs and requirements.

(g)       Pledge or otherwise impair the firm’s credit or assets.

(h)       Reveal or otherwise disclose either directly or indirectly any plans, secrets and dealings of whatsoever kind or nature belonging to and/or pertaining to the firm and its business to any person or persons whatsoever.

(i)        Transfer, Assign, Mortgage, Disposes off, Encumber or Alienate the Partnership business or its assets or his/her share, right, title and interest in the partnership to any other person or persons whatsoever.

(j)        Commit any act or reverse faith which shall be harmful to the interest or reputation of the firm.

(k)       Knowingly  or willfully do or commit or permit to be done or committed, any act, deed, matter or thing whatsoever whereby the Partnership money or effects or his/her share or interest therein may be seized, attached or taken into execution or materially affected.

(l)        Enter into any bond or become bail or security or surety with or for any person or persons or do or knowingly permit to be done anything whereby the capital or the property of the Partnership may be seized, attached, extended, endangered or taken into execution.

(m)      Give Power of Attorney to any person to act on behalf of the Partnership.

(n)       Lend any money or delivery upon credit any goods of the Partnership to any person or persons or firm or firms, company or companies, society or societies etc. whom the other partners shall have previously forbidden him/her by written notice. If any Partner shall after such notice given to him/her lend any money or deliver upon credit any goods of the partnership to any such person or persons, firm or firms, company or companies, society or societies etc, the partners so lending or delivering upon credit, such moneys or goods shall pay immediately to the Partnership full amount of the value of the money or goods which he/she have so lent and/or delivered upon credit as aforesaid or compensate for any loss which may have arisen to the remaining Partners.

(o)       Engage or dismiss agents, clerks, employees or other servants for or of the firms.

(p)       Enter into any heavy speculation or wagering transaction for the partnership business in his/her own name.

(q)       Any partner committing any breach of any of the foregoing stipulations shall bear and pay to the firm such loss arising therefrom and shall indemnify and keep indemnified the firm and other partners in respect therefrom.

 

(14)    RIGHTS OF THE PARTNERS:

During the continuance of this Partnership, if any, partners shall:

(a)       Commit any breach of any of the provisions of clause 12 and 13 of this deed or

(b)       Commit any act of insolvency or

(c)       Become physically or mentally unfit or

(e)       Do or suffer any act which would be a ground for the dissolution of the partnership by the court, then in such case, the other partners may, within three months after becoming aware thereof, by notice in writing determine the partnership.

 

(15)    ADMISSION OF NEW PARTNER:

The partners hereto may admit any new partner or partners upon such terms and conditions as may be mutually agreed upon by and between them subject to existing partners unanimously agree to admit new partner in writing.

 

(16)    RETIREMENT OF A PARTNER:

(a)       Any Partner desirous of retiring from the Partnership firm shall give the other partner previous three months notice in writing expressing his desire to retire from the Partnership and he shall be deemed to have so retired from such date as mentioned in the notice to be the date of retirement.

(b)       If any partner shall retire from the partnership during the continuation of the partnership, the Continuing Partners shall as from the date of such retirement become entitled to the share of the Retiring Partner in the partnership business  and in the property and goodwill thereof and shall undertake all the debts, liabilities and obligations of the partnership and pay to the Retiring Partner as the price of such share his undrawn share of profits upto the date of such retirement and Capital contributed by such Retiring Partner and all other amounts standing to the credit of such Retiring Partner in the firm’s books of account as on the date of his retirement.

 

(17)    DEATH OF A PARTNER:

If during the continuance of this Partnership, any of the Parties hereto shall die or become lunatic, the Partnership firm shall not be dissolved and the remaining partner shall admit the spouse or the legal heir or heirs to the said Partnership and be taken as substitute of the deceased partner on the same terms and conditions as hereinabove contained.

 

(18)    DISSOLUTION OF THE FIRM:

(a)       On the Dissolution of the Partnership hereby constituted by consent of the Parties hereto or otherwise, the same shall be wound up and the assets thereof sold and distributed as provided by Indian Partnership Act, 1932 or any other statutory modification or re-enactment thereof for the time being in force and subject to the provisions thereof, but so that each Partner shall be at liberty to bid at any such sale of any of the Partnership assets.

(b)       It is hereby further specifically agreed upon by and between the Parties hereto that in case of dissolution of the Partnership for any reason whatsoever, the goodwill, trade name, tenancy rights and all the other rights and benefits accruing to the said Partnership firm and all other Assets including stock-in-trade, furniture, fixtures, fittings, equipments etc. shall belong to the Parties hereto of the First, and Second Part in the same proportion in which they are sharing the Profits and Losses as stated in paragraph no.8 above.

 

(19)    GOODWILL OF THE FIRM:

Upon the death, insolvency or retirement of any partner, the account of the Partnership shall be made upto the date of death, retirement or insolvency as the case may be and the amount which may be found due to such partner including his/her share of goodwill shall be paid within three months from the date of death, retirement or insolvency as the case may be and if any amount be found due from such partner, the same shall be paid to the firm likewise within a period of three months as hereinabove stated.

 

(20)    ARBITRATION :       

If during the continuance of the said Partnership or any time afterwards, any dispute or difference shall arise between the partners or executors or the administrators of the partner or any of them in regard to the construction of any of the Articles hereinabove mentioned or contained or to any other matter relating of the Articles hereinabove mentioned or contained or to any other matter relating to this Partnership or the affairs thereof, such difference in all forthwith be to this Partnership or the affairs thereof such difference in all forthwith be referred to the Arbitration of Sole Arbitrator to be appointed mutually by and between the parties herein, and every such reference shall deemed to be an arbitration in accordance with the provisions of the Arbitration and Conciliation Act of 2015 or any other statutory modification or re-enactment thereof for the time being in force. The Arbitration shall be commenced and conducted in English Language and the venue of arbitration shall be in Jaipur only.

 

(21)    OTHER GENERAL TERMS AND CONDITIONS:

(a)       Any notice required to be given hereunder shall be deemed to be duly given if the same shall be delivered personally to the person to whom the same is intended to be given or left for him/her for him/her at or sent by post by registered letter to his/her usual or last known address or in the case of a notice to a partner left for him/her at the office of the partnership firm.

(b)       The parties hereto may appoint, authorize, nominate and/or constitute any other person to act for them and/or for and on behalf of partnership firm.

(c)       Save and except as hereinabove set forth, the relations between the parties hereto shall be governed and controlled by the provisions of the Indian Partnership Act, 1932 or any other statutory modification or re-enactment thereof for the time being in force.

(d)       Notwithstanding anything contained, recorded, stated or provided herein, the Partners shall have full powers and discretion to modify, alter and/or vary the terms and conditions of this DEED OF PARTNERSHIP in any manner whatsoever that they may think fit and proper by mutual agreement, which shall be reduced into writing and shall be reduced into writing and shall be signed by all the Partners and thereupon the said writings shall become appendage.

sIN WITNESS WHEREOF THE PARTIES HERETO HAVE SET AND SUBSCRIBED their respective hands the day and the year hereinabove written.

SIGNED, SEALED AND DELIVERED             )

BY THE WITHINNAMED                                           )

MR.                                                                       )

IN THE PRESENCE OF :                                             )

1.         MR._______________________                   )

2.         MR._______________________                   )

 

SIGNED, SEALED AND DELIVERED             )

BY THE WITHINNAMED                                           )

MS.                                                                    )                      

IN THE PRESENCE OF :                                             )                      

1.         MR._______________________                   )

2.         MR._______________________                   )




Buy This Document
$ 7.35

Buy Now Add to Reading List

User's Comments

There are no comments!