Admission cum Retirement Deed

This Deed of Admission cum Retirement made at THANE on this the ____
day of ______________, __________ between:

1. SHRI. _________________________, aged _____ yrs, Indian and

residing at ____________________________________________________
PAN:

_______________,

as

The

Continuing

Partner

(Which

expression shall unless it be repugnant to the context or meaning thereof

shall mean and include her heirs, executors, administrators and assigns) of
the First part .

2. __________________________ aged _____ yrs Indian Inhabitant

residing

at

_______________________________________________,

PAN: ______________, as The Deceased Partner (Which expression

shall unless it be repugnant to the context or meaning thereof shall mean
and include her heirs, executors, administrators and assigns) of the Second
Part.
3. ___________________________ aged ____ yrs Indian Inhabitant
residing at ___________________________________________________,
PAN:

_______________,

as

The

Incoming

Partner

(Which

expression shall unless it be repugnant to the context or meaning thereof

shall mean and include her heirs, executors, administrators and assigns) of
the Third part.
3.

__________________________

aged

_____

years

Indian

Inhabitant residing at _________________________________________,

PAN:

________________,

as

The

Incoming

Partner

(Which

expression shall unless it be repugnant to the context or meaning thereof

shall mean and include her heirs, executors, administrators and assigns) of
the Forth part.

WHEREAS the Continuing Partner and the Retiring Partner hereto have been
carrying on business in partnership under the Deed of Partnership dated
______________________

hereto

in

the

name

of

___________________ and having its principal place of business at

______________________________________,

as

per

the

terms

and

conditions contained in the original Deed of Partnership dated __________.

AND WHEREAS the continuing partners are desirous to induct the incoming
partner to the partnership and the incoming partners desires to be inducted
from the day of ____ ____________, ___________.

AND WHEREAS due to the death of _____________________________

became retiring partner, and on their place ________________________ his
wife is being continued from

the day of _______ __________,

________.
AND WHEREAS the incoming partner has agreed to contribute capital as
provided hereinafter and also to put in their efforts for the business of the
partnership.
AND WHEREAS the partnership, as reconstituted between the continuing
partners and the incoming Partners desires to carry on the same business
along with all the assets and liabilities of the erstwhile partnership.
NOW THIS INDENTURE WITNESSETH and it is agreed by and between the
parties hereto as under:
I . It is agreed by and between the Continuing Partners and
Incoming Partners that:

1.

The Deceased Partner doth hereby retire and shall be deemed to have
retired from the said Partnership between the parties hereto and carried
on under the name of ____________________ from the day of ____
______________, ___________.

2.

As from the said date the Continuing Partners and the Incoming Partners
have been and will be entitled to continue to carry on the said business in
partnership on such terms as may be agreed upon between them, time to
time.

3.

The Continuing Partners covenant with the legal heir of deceased partner
that they assign and release to the Incoming Partner all their respective
rights, titles, interests, claims, demands, etc. in the business of this firm,
including all assets and liabilities.

4.

The Continuing Partners agree to pay all the debts and liabilities of the
said Firm and to indemnify and keep indemnified the Deceased Partner
against all such debts and liabilities and all loss, costs, charges and
expenses that the Retiring Partners may incur or suffer on account
thereof.

5.

The Continuing Partners agree to transfer the Deceased Partners share,

right, title and Interest in the said partnership business including its
assets and goodwill to his legal heir __________________________.

6.

It is agreed by and between the Existing partner that the incoming

partner

shall

bring

in

sum

of

Rs._________/-

(Rupees

_________________________ Only) as their Share of Capital in the firm

and henceforth her share will have a ___% in the Profits and Losses of the
Reconstituted Firm.

7.

The Continuing Partners shall be intimated to the registration entry of the

Firm in the records of the Registrar of Firms and it will be amended
accordingly by the Continuing Partner and the Incoming Partners.

8.

The income tax payable by the Firm will be paid by the Continuing
Partners and the Incoming Partner.
II . It is agreed by and between the Continuing Partner and the
Incoming Partners that:

1.

It is agreed that:
a) The partnership as reconstituted between the continuing and incoming
partners shall carry on the business of partnership in accordance with
the terms and conditions laid down with effect from the day of ___
_____________, _________.
b) The business of the partnership shall continue to be carried on in the
name and style of ________________ or such other name or
names as the continuing partners may decide from time to time.
c) The principal place of business of the partnership shall be at
___________________________, or at such other place or places as
the continuing partners may decide from time to time.

d)

The business of partnership shall continue to be that of carrying on

the Business of __________________________. The partners
may mutually decide to start any other business as they deem fit
from time to time in future.
e) All the assets and liabilities as reflected in the books of account of the
partnership as on the day ___ of _________, _______ shall
continue to be assets and liabilities of the partnership and accordingly,
shall become the assets and liabilities of the reconstituted partnership
firm.
f) The funds required for the purpose of partnership shall be contributed
by the continuing partners from time to time as per the requirement
and as may be mutually agreed upon. The simple interest @ ___% p.a.
or at such other rate as may be prescribed under section 40(b) (iv) of
the Income Tax Act, 1961 or any other applicable provision on credit

balance of all partners. In case of debit balance, interest shall be

charged. The interest shall be computed on daily product basis.
g) All the partners shall be treated as working partners of the firm they
shall look after the day to day running of the business of the firm.
h) All the partners shall be paid monthly salary. However, the aggregate
yearly remuneration including commission payable to all the working
partners put together shall under no circumstances exceed the ceiling
laid down in section 40 (b) (v) of the Income Tax Act.
i) Subject to the provision contained hereinabove, each of the working
partners can draw salary every month or as may be decided mutually
amongst the partners.
j) The partners of the reconstituted firm shall be entitled to modify the
above terms relating to the payment of interest and remuneration and
also may decide to pay remuneration to any other partner/s by
executing a supplementary Deed, which shall form part of all the earlier
deeds.
k) The net profits of the business shall be divided between the partners in
the proportion as given below and they shall in like proportion bear the
losses of the business, including loss of capital specified as under:
a) __________________________

__%

b) __________________________

__%

c) __________________________

__%

l) The Bank account shall be operated under the signature of any one of
the partner.

m)No partners shall assign, mortgage or transfer his share or interest in

the partnership firm.
n) The insolvency, retirement or death of any partner shall not dissolve
the firm but the remaining partners can carry on the said business.
Also the legal heir of the deceased partner can be admitted to the
partnership business.
o) All the partners shall be diligent and faithful to each other and work to
their best ability for achieving the objects of the firm.
p) The books of account of the partnership shall continue to be
maintained from April to March, i.e. accounting year shall end on 31 st
March every year. As soon as possible, profit & loss account and
balance sheet shall be prepared at the end of every accounting year.
The books of accounts of the partnership shall be kept at the Principal
Place of Business. The continuing partners shall be personally liable for
their respective debts and liabilities and neither the partnership nor
other partners in their individual capacity shall be liable for the same.
q) The partnership shall be AT WILL, though any partner desirous of
retiring may do so by giving notice to other partners.
r) No partner shall, except in the ordinary course of the business, take
any loan or incur any debt for the partnership firm without the consent
of other partners in writing.
s) All the disputes that may arise at any time between the partners or
their

respective

executors

or

administrators

in

respect

of

the

partnership affairs or interpretation of any clause of this Deed shall be

referred to an arbitrator to be appointed by each of the parties hereto

and the decision of such arbitrator shall be final and binding.

t) In other matters not covered by this Deed, the provision of the Indian
Partnership Act, 1932 shall apply.
IN WITNESS WHEREOF the Partners have put their respective hands
the day and year first hereinabove written.
Signed and delivered by
The within named continuing Partners
______________________________
In the presence of
1.
2.
______________________________
In the presence of
1.
2.

______________________________
In the presence of
1.
2.