Partnership Deed. WHEREAS the Partners have decided to reduce the terms & conditions of their Partnership into writing as appearing hereinafter:
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1 THIS DEED of PARTNERSHIP is made at.. on this.. day of by and between: Shri. aged about.. Years, son of Shri. resident of (Hereinafter to be called the First Party); Shri. aged about years, son of Shri. resident of (Hereinafter to be called the Second Party); Shri.. Aged about. years, son of Shri. resident of (Hereinafter to be called the Third Party); Shri.. Aged about.. Years, son of Shri. resident of (Hereinafter to be called the Fourth Party); WHEREAS the parties to this deed have been carrying on the business of under the name and style of M/s.. with its principal place of business at. on the terms and conditions incorporated in the Partnership Deed executed on.. WHEREAS the Partners have decided to reduce the terms & conditions of their Partnership into writing as appearing hereinafter: NOW THIS DEED OF PARTNERSHIP WITNESSETH AS FOLLOWS: 1. NAME OF THE PARTNERS: 1) Mr. 2) Mr. 3) Mr. 4) Mr. 2. NAME OF THE PARTNERSHIP: That the name of the Partnership shall be having its office at India (the Firm ). 3. COMMENCEMENT: That the present Partnership firm shall be deemed to have commenced from day month year. 4. INVESTMENT: That the capital required for the business of the partnership shall be contributed by the partners in such a manner and in such proportion as may be mutually agreed upon from time to time.
2 5. RATE OF INTEREST: That interest at the rate of per annum or as may be prescribed under section 40(b)(iv) of the Income-tax Act, 1961 or any other applicable provisions as may be in force in the income-tax assessment of the partnership firm for the relevant accounting period or at a lower rate as may be agreed to by and between the parties from time to time shall be paid to the partners or credited to the partners on the amount standing to the credit of the account of the partners. Such interest shall be considered as an expenditure of the firm and shall be debited to the Profit & Loss Account of the firm before arriving at the divisible profit or loss. The interest to persons other than partners shall be paid or credited to their accounts at the rate or rates as may be agreed to by and between the partners and such persons from time to time. 6. CAPITAL: The capital of the partnership shall be contributed in cash by the partners as follows: a. A separate capital account shall be maintained for each partner. b. Neither partner shall withdraw any part of their capital account. c. Upon the demand of either partner, the capital accounts of the partners shall be maintained at all times in the proportions in which the partners share in the profits and losses of the partnership 7. CONDUCTING AFFAIRS OF BUSINESS: That Shri.. Shri Shri.. And Shri.have agreed to keep themselves actively engaged in conducting the affairs of the business of the partnership firm. The said partners shall be working partners. It is hereby agreed to that in consideration of the said parties keeping themselves actively engaged in the business of the partnership firm and working as working partners, shall be entitled to remuneration. 8. OBJECTS: That the business of the partnership firm shall be to act as.. (Object for carrying on partnership) and/or any other business or businesses as may be mutually agreed upon time to time. 9. PROFIT SHARING RATIO:
3 That the profits or losses including capital profits/ losses after accounting for all the expenses and transfer of property be divided or borne as the case may be as under :- S.NO. NAME IN THE CASE OF PROFIT/LOSS 1. Sri Sri Sri Sri. 10. BOOKS OF ACCOUNTS: The books of account shall be closed on 31st day of March each year. The net profit or loss after deducting all expenses, interest, remuneration, and outgoings shall be divided between the parties in proportion to the sharing ratio referred to hereinabove. The partnership books shall be maintained at the principal office of the partnership, and each partner shall at all times have access thereto. The books shall be kept on a fiscal year basis, and shall be closed and balanced at the end of each fiscal year. An audit shall be made as of the closing date. 11. BANKER: That the firm shall maintain one or more than one banking account with one or more than one banks as may be decided by the partners and such account or accounts of the partnership firm shall be operated upon including the power to overdraw any such account/accounts by the party of second and third part jointly or as per instructions to the bank from time to time. 12. ADDITION OF PARTNER: That if the partners deem proper and in their interest, they may admit any other person or persons as partners on the terms and conditions as may be mutually agreed amongst themselves. 13. BORROWING POWERS: That the firm is entitled to borrow money from banks or financial institutions or raise funds from the market for carrying on the business of the partnership firm on such terms and conditions which are beneficial to the partnership firm after the partners unanimously agree to do so and the same shall be binding upon all the partners. However no partner shall raise any loan in the name of the partnership for his personal use and in case he does so he/she none shall be responsible for the repayments and interest thereon if any. 14. DUTIES OF PARTNERS:
4 That each partner shall be just and faithful to the other partners in all transactions relating to the partnership business and at all time give to the other partner true account of all such dealings. 15. PROFIT AND LOSS: The net profits of the partnership shall be divided in profit sharing ratio between the partners and the net losses shall be borne equally by them. A separate income account shall be maintained for each partner. Partnership profits and losses shall be charged or credited to the separate income account of each partner. If a partner has no credit balance in their income account, losses shall be charged to their capital account. 16. SALARIES AND WITHDRAWALS: Neither partner shall receive any salary for services rendered to the partnership. Each partner may, from time to time, withdraw the credit balance in their income account. 17. POWER OF ATTORNEY: That any or all the parties are hereby authorised to do all acts on behalf of the firm which are necessary for the smooth conduct of the business and to deal with and act on behalf of the firm in connection with Bank Post Office, Income Tax, Sales Tax and Other department or Board Bodies and commercial association. They are in the like manner authorized to file, conduct and withdraw proceedings, to make statements as solemn affirmation and otherwise act therein on behalf of the firm in any court of law, to verify income tax returns and Memorandum of appeals, to get refund etc. and to refer any matter to arbitration. They are also authorized to operate loan Accounts and to otherwise pledge the Assets of the Firm and to authorize any person to do all or any of these acts and also to cancel such Power of Attorney. 18. MODIFICATION OF TERMS: That the partners shall be entitled to modify the above terms relating to remuneration, interest, etc. payable to partners by executing a supplementary deed and such deed when executed shall have effect unless otherwise provided from the first day of accounting period in which such supplementary deed is executed and the same shall form part of this deed of partnership. 19. DEATH: Upon the death of either partner, the surviving partner shall have the right either to purchase the interest of the decedent in the partnership or to terminate and liquidate the partnership business. If the surviving partner elects to purchase the decedent's interest, he shall serve notice in writing of such election, within three months after the death of the decedent, upon the executor or
5 administrator of the decedent, or, if at the time of such election no legal representative has been appointed, upon any one of the known legal heirs of the decedent at the last-known address of such heir. a) If the surviving partner elects to purchase the interest of the decedent in the partnership the purchase, the purchase price shall be equal to the decedent's capital account as at the date of their death plus the decedent's income account as at the end of the prior fiscal year, increased by their share of partnership profits or decreased by their share of partnership losses for the period from the beginning of the fiscal year in which their death occurred until the end of the calendar month in which their death occurred, and decreased by withdrawals charged to their income account during such period. No allowance shall be made for goodwill, trade name, patents, or other intangible assets, except as those assets have been reflected on the partnership books immediately prior to the decedent s death; but the survivor shall nevertheless be entitled to use the trade name of the partnership. b) Except as herein otherwise stated, the procedure as to liquidation and distribution of the assets of the partnership business shall be the same as stated in paragraph 10 with reference to voluntary termination. 20. TRANSFER OF INTEREST: No partner shall without the prior consent in writing of the other partners assign, transfer or mortgage his share or interest in partnership. 21. VOLUNTARY TERMINATION: The partnership may be dissolved at any time by agreement of the partners, in which event the partners shall proceed with reasonable promptness to liquidate the business of the partnership The partnership name shall be sold with the other assets of the business. The assets of the partnership business shall be used and distributed in the following order: (a) To pay or provide for the payment of all partnership liabilities and liquidating expenses and obligations; (b) To equalize the income accounts of the partners; (c) To discharge the balance of the income accounts of the partners; (d) To equalize the capital accounts of the partners; and (e) To discharge the balance of the capital accounts of the partners. 22. ARBITRATION: Any dispute or difference arising between the parties hereto in relation to the affairs of the Partnership Firm or in regard to construction of any clause hereof in relation to the rights, duties
6 and obligations of the parties hereto shall be referred to the arbitration of Sri son of residing at who shall enter upon the reference and decide the matter and award given by such arbitration shall be final and binding on the parties hereto subject to the provisions of the Arbitration and Conciliation Act MUTUAL CONSENT: That in all matters not covered by the terms of this agreement, mutual consent of all the partners shall prevail. IN WITNESSES WHEREOF all the parties referred to hereinabove have set their respective hands, the date month and year first above written. WITNESS SIGNATURE (PARTY OF THE FIRST PART) (PARTY OF THE SECOND PART) (PARTY OF THE THIRD PART (PARTY OF THE FOURTH PART
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