DEED OF PARTNERSHIP
This indenture of partnership made and entered into Rajkot, this 4th day of September 2009 between Shri Karmit Patel, an inhabitant of Rajkot hereinafter called the “first partner”, Shri Vatsal Patel, an inhabitant of Rajkot hereinafter called the “second partner”.
Name of the business: GRIEVES FORGE
With effect from: 4th December 2009
Address: “GRIEVES FORGE”, plot no. 15, road-D, Metoda GIDC, Rajkot-360 005 (Gujarat).
NOW THIS INDENTURE WITNESSETH AND IT IS HEREBY AGREED BY AND BETWEEN THE PARTNERS AS UNDER:
1. Name of business: GRIEVES FORGE
2. Commencement of business: 4th December 2009
3. The partners have agreed that the business of the partnership shall be forging of auto parts that may be mutually agreed upon between partners.
4. Address: “GRIEVES FORGE”, plot no. 15, road-D, Metoda GIDC, Rajkot-360 005.
5. The partnership is at will. A partner desirous of terminating the partnership shall have to give to the other partner notice of 3 months in writing.
6. The profits and losses of the partnership firm including capital profits and losses shall be shared by the partners in the following ratio:
Shri Karmit Patel- 50%
Shri Vatsal Patel- 50%
7. The capital of the partnership firm shall be Rs. 5,00,00,000(five crores), the first partner, Karmit Patel contributing Rs. 2,25,00,000(two crores twenty five lakhs) and the second partner, Vatsal Patel contributing Rs. 2,25,00,000(two crores twenty five lakhs) and a loan of Rs. 50,00,000(fifty lakhs) at 10.5% rate of interest for a period of 5 years. The partners shall be entitled to interest on capital at the rate of 10% p.a. from the date of this partnership deed.
8. Each partner shall be entitled to draw from the partnership firm a sum of Rs. 5,00,000(five lakhs) per month as drawings. No interest shall be payable by the partners to the partnership firm on such drawings.
9. The partnership firm shall pay the partners salary not exceeding the following limits:
(a) In case of any loss- Rs. 15000 per month.
(b) On book profit- 15% of the book profit.
10. The first accounts of the partnership firm shall be closed on 31st March 2010 and thereafter on 31st March of each year.
11. Bank accounts and other accounts shall be opened in the name of partnership firm and operated by either of the partners.
12. No partner shall without the consent in writing of the other partners shall:
(a) Assign, mortgage or charge his share or interest in the partnership wholly or in part, to any person other than the other partner.
(b) Admit any liability in a suit or proceedings against the partnership firm.
(c) Transfer immovable property belonging to the partnership firm.
(d) Open a bank account on behalf of the partnership firm in his own name.
13. A partner may carry on similar business carried on by the partnership firm in his individual capacity or in partnership with others if the other partner consents to it.
14. Upon death or retirement of any partner, the partnership firm shall not be dissolved. In the event of death, it will be open to the surviving partner whether to admit the legal heir/s as partners or not to the partnership.
15. (a) Each partner shall be responsible and liable for his personal debts and liabilities which shall be discharged by him personally and he shall keep the other partner and the firm indemnified to that respect.
(b) Each partner shall indemnify the partnership firm as well as the other partner for loss caused to it or him as the case may be by his fraud or breach of authority in the conduct of the business of the partnership firm.
16. During the continuance of the partnership or at any time thereafter, any dispute or difference relating to the partnership or its business which may arise between the partners or their respective heirs, the same shall be decided in accordance with the provisions of the Indian Arbitration and Reconciliation Act, 1996 as amended from time to time. The award of the arbitrator shall be final and binding on the partners and their legal representatives.
17. The partners may add, alter, amend the provisions of this partnership deed from time to time in any manner they mutually agree to and such additions, alterations and amendments shall be recorded in writing and signed and accepted by all partners in which occurrence they shall be operative as if they were the terms of this partnership deed.
18. This agreement shall be subject to the jurisdiction of the Rajkot High Court.
Karmit Patel Vatsal Patel
(Partner- Grieves Forge) (Partner- Grieves Forge)