Reconstituted partnership deed in case of death of a partner

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PUNITA (Querist)
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21 March 2018 Kindly provide me the format of the partnership deed in case of death of a partner and simultaneous admission of the legal heir (in my case, wife of the deceased partner) in replacement of the deceased.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 July 2024 Certainly! Below is a draft format of the Partnership Deed for a partnership firm where one partner has passed away and the legal heir (wife of the deceased partner) is being admitted as a partner in place of the deceased partner:

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### Draft Partnership Deed After Death of Partner and Admission of Legal Heir

**Partnership Deed**

This Deed of Partnership is made and executed on [Date], between:

1. **[Name of Surviving Partner]**, son/daughter of [Father's Name], residing at [Address], hereinafter referred to as "Continuing Partner" (First Partner).

2. **[Name of Legal Heir]**, wife of late [Name of Deceased Partner], residing at [Address], hereinafter referred to as "Admitting Partner" (Second Partner).

WHEREAS:

1. **Original Partnership:**
- A Partnership was formed and registered under the Partnership Act, [Year of Formation], consisting originally of [Name of Deceased Partner] and the Continuing Partner.

2. **Death of Partner:**
- Unfortunately, [Name of Deceased Partner], one of the partners, has deceased on [Date of Death].

3. **Admission of Legal Heir:**
- The Continuing Partner and the legal heir of the deceased partner, [Name of Legal Heir], express their mutual desire to continue the business of the partnership and have agreed to admit [Name of Legal Heir] as a partner in place of the deceased partner.

4. **Reconstitution:**
- The partners have agreed to reconstitute the partnership on the following terms and conditions:

**Terms and Conditions:**

1. **Name and Nature of Business:**
- The business of the partnership shall continue to be conducted under the name and style of [Name of Partnership Firm], and the nature of the business shall remain [Describe Nature of Business].

2. **Duration:**
- The partnership shall continue for an indefinite period until terminated by mutual consent or as provided by law.

3. **Capital Contribution:**
- The Continuing Partner shall contribute [Specify Contribution] as capital, and the Admitting Partner shall also contribute [Specify Contribution] as capital to the partnership.

4. **Profit and Loss Sharing:**
- The profits and losses of the partnership shall be shared as follows:
- [Continuing Partner's Profit/Loss Share] % to the Continuing Partner, and
- [Admitting Partner's Profit/Loss Share] % to the Admitting Partner.

5. **Management:**
- The management and administration of the partnership business shall be jointly managed by the Continuing Partner and the Admitting Partner. Decisions shall be made jointly, and any disagreements shall be resolved amicably.

6. **Banking and Accounts:**
- The partnership shall operate a bank account in the name of the partnership firm, and all transactions shall be conducted through this account. Both partners shall have equal access and authority over the bank account.

7. **Admission of New Partners:**
- Any future admission of new partners shall require the unanimous consent of the Continuing Partner and the Admitting Partner.

8. **Termination:**
- The partnership may be terminated by mutual consent of the partners or in accordance with the provisions of the Partnership Act.

9. **Miscellaneous:**
- Any matters not specifically provided for in this Deed shall be governed by the provisions of the Indian Partnership Act, [Year].

**IN WITNESS WHEREOF**, the parties hereto have executed this Deed of Partnership on the day, month, and year first above written.

**Signatures of Partners:**

1. [Signature of Continuing Partner]
Name: [Name of Continuing Partner]

2. [Signature of Admitting Partner]
Name: [Name of Admitting Partner]

**Witnesses:**

1. [Signature of Witness 1]
Name: [Name of Witness 1]

2. [Signature of Witness 2]
Name: [Name of Witness 2]

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### Notes:
- **Legal Advice:** It's advisable to seek legal advice to ensure compliance with local partnership laws and regulations.
- **Registration:** The partnership deed should be executed on stamp paper of appropriate value and registered, if required, as per local laws.
- **Bank Account:** Update the bank account details with the bank to reflect the changes in partnership composition.
- **Government Filings:** Notify relevant authorities about the change in partnership composition, if required.

This draft outlines a basic framework. Depending on specific legal requirements and local laws, additional clauses or documents may be necessary.