Deed of dissolution of partnership firm

Sandeep Rauniyar (Formfilings.com) (75 Points)

09 March 2018

Deed of Dissolution of Partnership

THIS DEED OF DISSOLUTION OF PARTNERSHIP made the 1st day of month, 20XX

BETWEEN

Mr. A, …………, son of …………….., Residing at ………………………., hereinafter referred to as the “First Party”.

Mr. B, son of ……………., Residing at…………………….., hereinafter referred to as the “Second Party”.

Mr. C, Son of ………………………, Residing at……………………….., hereinafter referred to as the “Third Party”.

WHEREAS the partners hereto under a deed of partnership dated 18th Month, 20XX made between them formed themselves into a Partnership Firm and carried on business under the name and style of …………………..in pursuant to the covenants, stipulations and provision contained in the said deed;

AND WHEREAS it has been mutually decided between the parties that the said partnership shall be dissolved, and the said trade and business shall be wound up and the assets and credits realized and called in, and the net proceeds after payment and satisfaction of all debts and liabilities divided between the partners according to the covenants in this behalf appearing in the deed of partnership.

NOW THIS DEED WITNESSES that in pursuance of the said agreement it is hereby declared and agreed by and between the parties hereto as follows, that is to say:

The said partnership between the partners hereto under the deed, dated 18th Month, 20XX hereunto appended shall be determined and stand dissolved as from the 1st day of Month, 20XX. And the parties hereto singly or jointly shall not carry on the business of the said firm of……………….. under the said name and style for a period of …….years hence.
The parties hereto shall on the aforesaid date of 1st Month, 20XX sign notices of the dissolution and will intimate the fact of dissolution to Income Tax of India.
Within 30 days after the dissolution of the partnership a full and general account and balance sheet shall be taken and effects belonging to the firm shall be made by the parties or such other person as the partners may choose to appoint, whose decision shall be final and binding upon the partners.
That as soon as may be, after the property, assets and liabilities have been got in and disbursed the parties or such other person or persons whom the parties may have appointed under the foregoing clause shall divide and apportion the share of the parties, in the proportion of the contribution of the parties towards the capital. In such division any amounts paid earlier or due to the parties according to the books of the partnership shall be taken into account. That the cost of liquidation proceedings shall also be deemed to be a liability of the partnership and paid from the funds of the partnership.
That in case the winding up shows a loss or the assets of the partnership are insufficient to meet the liabilities and debts of the partnership then the partners shall forthwith pay such losses in the proportion of their contribution to the capital.
Each of the parties shall, so soon as the others or any of them, or their or his representatives, shall have executed and done all the assurances, acts or things hereby agreed to be done by them respectively and at the request and cost of such other or others, or their or his representatives execute to them or him such releases, indemnifies, and assurances as may be reasonable and proper;

IN WITNESS WHEREOF the said A, B and C have hereto signed and executed this agreement of dissolution and appended it to the said deed of partners, dated 1st Month, 20XX.

NAME OF PARTNERS WITNESS