between a Partnership firm and a Hindu Joint Family
This Deed of
Partnership made at ... on this ... day of... between M/s A B & Co. a
partnership firm, consisting of and represented by its partners (1)... (2)...
(3) hereinafter referred to as the 'Party of the First Part. and Mr. B residing
at ... and in his capacity as the Karta or Manager of his joint and undivided
Hindu family hereinafter referred to as the Party of the Second Part'.
Whereas the Party of
the First Part is carrying on business of............... in partnership.
And Whereas the Party
of the Second Part is carrying on similar business of ... and which is his
And Whereas the adult
male members of the said Joint Hindu Family are in ... number and have
consented to the said Karta of their family to enter into a partnership
agreement with the Party of the First Part with a view to expand the said
business and to carry it on a large scale as to avoid competition between them.
And Whereas the
parties of the First and Second Part have. therefore, proposed to combine their
respective businesses and to carry on the same in partnership on the terms and
conditions hereinafter mentioned.
Now it is hereby
agreed by and between the parties hereto as follows:
Parties shall as from the ... day of ... combine their respective businesses
together with all the assets and agree to carry on the said business In
partnership between the Party of the First Part on the one hand and the Party o
f the Second Part on the other hand.
Partnership shall be deemed to have commenced from the said date and will
continue at the will of the parties hereto.
assets Including goodwill of the business of the Party of the First Part are
valued at Rs... and the assets including the goodwill of the business of the
Party of the Second Part are valued at Rs... The respective assets of the Party
of the First Part and Second Part will be deemed to be their respective
contributions to the capital of the said firm. If any capital gains tax Is
required to be paid by any party hereto on the valuation of his capital
contribution as aforesaid, the same will be paid by that Party separately and
such Party will indemnify and keep indemnified the other Party against such
liability. If any further capital or finance is required, the same will be
contributed by the Party of the First & Party of the Second Part In the
same proportion and will carry interest at the rate of 18% per annum or at such
other rate as may be allowed by the Income Tax Act.
Party of the First Part will be represented by one of the partners of that
Party and he will be authorised by the other partners of the Party of the First
Part to represent that Party. Such authorised partner may be changed from time
to time. The other partners may help in carrying on the business of the firm.
Similarly the Party of the Second Part will be represented by the Karta of the
Joint Hindu Family for the time being. The other members of the said family
will not be considered as separate partners so far as the Firm is considered
and though they may render help in carrying on the business of the firm.
business of the partnership shall be carried on In the name of M/s...
(hereinafter referred to as the 'Firm') and the business shall consist of ...
and of such other incidental business as the partner may from time to time
office of the partnership shall be at ... The parties may open branches at such
other places as they may be agree upon.
any Party shall contribute more amount than his share in the capital. It will
be treated as a loan by him to the Firm carrying Interest at the rate of 18%
per cent per annum.
net profits and losses of the Firm will be shared by the parties hereto In
proportion to their shares in the capital of the Firm that is to say the Party
of the First Part will be entitled to ... share and Party of the Second Part
will be entitled to ... share. The partners of the Party of the First Part
between themselves will be entitled to their said share in the proportion In
terms of their partnership agreement. The share of the Party of the Second Part
will be the property of his family. Net profit will mean gross profit earned in
such year less the expenses of the management of the business including the
rent of the premises of the Firm including outgoings In respect of the salaries
and wages of the staff. commission paid to others. and all other expenses
Incurred In connection with the business of the firm.
accounting year of the Firm will be from 1st April to 31st March of each
Christian calendar year.
the end of each accounting year an account of the business carried on in that
year "I be made and a statement of accounts namely a Balance Sheet and
Profit and loss Account will be prepared and signed by the partners. If
necessary or required by law the accounts will be got audited by a Chartered
books of account and all other record of the Firm will be always kept at the
office of the Firm and will be open for inspection by any of the partners hereto
at any time.
the working staff such as clerks, peons. accountants, cashier, -salesmen and
others will be approved by the joint consent of the authorised partner of the
Party of the First Part and the Karta representing the Party of the Second Part
and their wages and salaries and other emoluments will be fixed by mutual
consent of the said persons.
of the party hereto shall -
a. participate and
attend to the business of the Firm through their aforesaid representatives to
the greatest common advantage of the Firm.
b. be just and faithful
to each other.
c. render true accounts
and full Information of all moneys affecting the Firm to the other.
d. Indemnify the Firm
for any loss caused to it by wilful negligence or fraud in the conduct of the
e. not carry on any
business similar to the business of the Firm or any other business anywhere
without the consent of the other party.
f. attend to the
business of she Firm diligently and actively.
g. Not withdraw any
amount for its own profit benefit or use as remuneration or otherwise without
the consent of the other.
h. be entitled to be
indemnified by the Firm In respect of payment made and liabilities Incurred by
the order and proper course of business of the Firm, and
doing any act for protecting the Firm from loss in emergency.
the tangible and intangible assets of the Firm including the goodwill.
stock-in-trade. benefit of business licenses and permits, benefits of contracts
entered etc. will belong to the parties In the same shares as aforesaid and the
property of the Firm shall be used by the Parties exclusively for the business
of the Firm.
Party shall account for the profit earned from any transaction of the Firm or
from the use of the property in any business transaction of the Firm.
any partner of the Party of the First Part other than the authorised
representative or any member of the family of the Party of the Second Part is
appointed to do full time work of the Firm, he will be paid separately as
remuneration such amount as may be agreed upon allowable under the Income Tax
Act as deduction and such remuneration will be treated as the expenses of the
Party of the First Part and Party of the Second Part may draw every month. such
amounts for their own expenses as may be agreed upon from time to time and the
same will be taken into account while ascertaining the share In the net profits
of each party In the Firm.
party hereto shall not. without the consent of the other -
a. submit any dispute
with any other person to arbitration or compromise or relinquish the claim.
b. withdraw any suit or
legal proceedings filed by the Firm,
c. admit any liability
of the Firm.
d. acquire or dispose of
any immovable or moveable property, except the stock In trade in the ordinary
course of business.
e. enter into
partnership or other business unilaterally with any other person,
f. assign or transfer
his share or any interest in the Firm, (g) admit any person as a partner In the
g. borrow any moneys for
or in the name of the Firm. or create any security or charge on the assets of
h. enter into any
contracts except contracts in the regular course of business of the Firm,
i. stand as a guarantor
or surety for any person In the name of the Firm or for and on behalf of the
Parties shall open in the name of the Firm one or more accounts either current,
saving or overdraft or cash credit with one or more banks as may be agreed upon
by the partners and the account or accounts will be operated by the authorised
partner of the Party of the First Part and the Karta representing the Party of
the Second Part jointly.
any Party hereto desires to dissolve the Firm he shall give to the other at
least three months previous notice to that effect and on the expiration of the
notice period the Firm shall stand dissolved.
the Party of the First Part Is Itself dissolved or is adjudged insolvent or if
all the male adult members of the Party of the Second Part are adjudged
insolvent, or there is full partition among the members of that Party, this
partnership shall also stand dissolved.
dissolution of the Firm, an account will be made of all the assets and
liabilities of the Firm, and the assets will be sold either to any of the
parties hereto to any other outsider and after payment of the debts and
liabilities, the net sale proceeds will be distributed among the Parties of the
First Part and Second Part In proportion to their respective In the capital of
the Firm as aforementioned.
any dispute or difference shall arise between the Parties hereto touching the business
of the Firm or interpretation of any provision hereof or otherwise, howsoever,
relating to the Firm and its business. the same shall be referred to
arbitration of a common arbitrator If agreed upon, failing which to two
arbitrators one to be appointed by each Party to the arbitration and the
arbitration shall be governed by the Arbitration & Conciliation Act, 1996.
parties shall, as early as possible but In any event within the prescribed
period get the Firm registered under the Partnership Act. 1932. as well as
under the Income Tax Act, 1961, and the application or a certified copy of this
deed will be signed by all the partners of the Party of the First Part and by
the Karta of the Party of the Second Part.
Deed is executed in duplicate and one copy will remain with the party of the
First Part and the other will remain with the Party of the second Part.
IN WITNESS WHEREOF
the Parties have put their respective hands the day and year first hereinabove
Signed and delivered
and on behalf of M/s
... by its partners (1) ... (2) ... (3) ... in the presence of ... ...
Signed and delivered
withinnamed Mr. B as
the Karta of his Hindu Undivided Family in the presence of ...