Deed of Partnership for Admitting a New Partner

THIS DEED OF PARTNERSHIP made at Mumbai on the  day of 200___ BETWEEN (1) ABC of ________, Indian Inhabitant, having 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 the Party of the FIRST PART; (2) DEF of ___________, Indian Inhabitant, having 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 the Party of the SECOND PART; and (3) GHI of _________, Indian Inhabitant, having 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 the Party of the THIRD PART;
WHEREAS:—
(a)	The parties hereto of the First and Second Part have been carrying on business in the firm name and style of 
Messrs. ___________________ under the Deed of Partnership dated ___________ and upon the terms and conditions recorded therein.
(b) 	The parties hereto of the First and Second Parts are desirous of admitting the party of the Third Part as partner in 
the firm of Messrs. ____________________________ upon the terms and conditions recorded hereinafter.
IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS UNDER:—
1.	The Party of the Third Part is hereby admitted into the said partnership firm of Messrs. ________________________ with effect from _______________ upon the terms and conditions recorded herein. The reference to partnership hereinafter shall be the reference to the newly constituted partnership.
2. 	The Partnership shall commence (or shall be deemed to have commenced) on the ________ day of _______ 200___. 
3. 	The name of the firm shall be “Messers ______________”.
4. 	The Partnership shall be “at Will”.
5.	The business of the Partnership shall be carried on 
at _____________________________________________________or at such other place or places as the partners may from time to time agree upon.
6. 	The business of the partnership shall be of _______________ _______________ or such other business as the partners may from time to time decide.
7	The accounting year of the partnership shall be from 1st day of April to 31st day of March of the next year.
8. 	The Bankers of the Partnership shall be such bank or banks as the partners may from time to time agree upon and such bank account or accounts shall be operated by such partners or partner as the parties hereto may from time to time agree upon.
9. 	The capital of the partnership shall be the sum of 
Rs. ____________ /- and shall be provided by the partners in their profit and loss sharing ratio. If at any time hereafter any further capital is required for the purpose of the partnership the same shall, unless otherwise agreed, be contributed by the partners in the same ratio. The partners shall be entitled to interest on the capital brought in by them. 
10. 	Simple interest at the rate of 12% per annum or at such other rate as may be mutually agreed upon or at such rate not exceeding rate as may be prescribed by the Income Tax Act in Section 10(b) or such other statutory modifications or 
re-enactment thereof as may be in force from time to time, shall be payable on the amounts standing to the credit of Capital Account, Loan Accounts or Current Accounts of the Partners, from time to time, with effect from __________ 200__.
11. 	SHRI _______________________, the party of the First Part and SHRI ______________________________, the party of the Second Part (hereinafter referred to as Working Partners) shall devote such time and attention in the conduct of the Partnership business as the circumstances and the business needs may require. In consideration thereof the Working Partners every year shall be entitled to the remuneration as hereinafter mentioned. 
	No fixed remuneration shall be paid, however it shall be in accordance with the provisions of Income Tax Act, 1961. The aggregate remuneration payable to the working Partners every year shall be in the following ratio:—
(1)	in case of a firm carrying on a profession referred to in 
section 44AA or which is notified for the purpose of that section:—
(a)	On the first Rs. 1,00,000 of 	Rs. 50,000 or at the 
the the book-profit or in 	rate of 90 percent of  case of a loss	the book-profit,
			whichever is more;
(b)	On the next Rs, 1,00,000 of 	at the rate of 60 the book-profit	percent; 
(c)	On the balance of the 	at the rate of 40 book-profit	percent;
OR
(1)	in the case of any other firm:—
(a)	On the first Rs. 75,000 of 	Rs. 50,000 or at the 
the book-profit, or in case	rate of 90 percent of 
Of a loss		the book-profit,
			whichever is more;
(b)	On the next Rs, 75,000 of 	at the rate of 60 
the book-profit	percent; 
(c)	On the balance of the 	at the rate of 40
book-profit	percent; 
	(THE APPLICABLE CLAUSE SHOULD BE INCORPORATED)
	The parties are at liberty to modify the remuneration payable to each of the partners in accordance with the provisions of Income Tax Act, 1961.
12. 	That the Remuneration and/or interest paid as above shall be a charge on the Profit & Loss Account.
13. 	The share of the Partners in the profit and loss of the partnership, after payment of interest on Partners’ Capital/Current/Loan account and remuneration to the working Partner/s, shall be as follows:—
NAMES	PERCENTAGE
(1)	_______________________ 	
(2) 	_______________________	
(3) 	_______________________ 
 			----------
	Total 	 100%
		----------
14. 	Proper books of account shall be maintained as are usually maintained in the trade and business of similar nature and shall be maintained properly posted up and kept at the principal place of business of the partnership or other offices of the partnership as may be agreed upon and each of the partners hereto shall be entitled to have inspection of the said books of account and shall also be entitled to copy or extracts therefrom.
15. 	As soon as practicable after end of every accounting year during the continuance of the partnership a general account and valuation shall be taken and made up to the end of every accounting year. 
16. 	Each partner shall:
(a)	devote his whole time and attention to the Partnership business (except during holidays);
(b)	punctually pay and discharge his separate debts and engagements and indemnify the other partners and the partnership assets against the same and all proceedings cost, claims or demands in respect thereof;
(c)	be just and faithful to the other partners in all transactions relating to the partnership business and at all times give to the others a true account of all such dealings.
17. 	None of the partners shall without the consent of the other Partners:-
(a)	engage or be concerned or interested either directly or indirectly in any other similar business or occupation;
(b)	engage, make any contract with or dismiss any employee;
(c)	forgo the whole or any part of any debt or sum due to the partners;
(d)	except in the ordinary course of trade dispose of by loan pledge, sale or otherwise of any part of the partnership property;
(e)	become bail guarantor or surety for any person or do or knowingly suffer anything whereby the partnership property may be endangered;
(f)	assign or charge their interest in the firm or;
(g)	draw or accept or endorse any bill of exchange or promissory note on account of the partnership.
18. 	If any partner desires to retire from the partnership he/she may do so after giving three months clear notice to other partners.
19.	Death of any of the partners hereto shall not dissolve the partnership but the legal representatives of the deceased partner shall be taken up as a partner in place and stead of the deceased partner.
20.	The rights, powers, duties and obligations of the parties (partners) hereto shall be governed by The Indian Partnership Act, 1932 or such other statutory modifications or re-enactment thereof.
21.	That the parties hereto shall give due intimation of the change to the Registrar of Firms as required by the Indian Partnership Act and sign the papers necessary thereof.
22. 	If any dispute arises between the parties hereto in respect of the partnership, the same shall be referred to the Arbitration under The Arbitration and Conciliation Act, 1996 or the Arbitration Act as may be in force.

 IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.

SIGNED AND DELIVERED by the 	 )
Within named, ABC the Party of the First Part,	)
in the presence of. .. 	 )

SIGNED AND DELIVERED by the 	 )
Within named, DEF the Party of the Second 	)
Part, in the presence of. .. 	 )

SIGNED AND DELIVERED by the 	 )
Within named, GHI, the Party of the Third 	 )
Part, in the presence of. .. 	 )