BOND EXECUTED BY THE CONTINUING PARTNERS TO RETIRING/DECEASED PARTNER

This Deed of Dissolution is made on_____ day of _____ month Between ________, son of__________, resident of__________, aged ______ years, Hereinafter to be called as THE FIRST PARTY (Continuing Partner) and__________, son of ________, resident of_________, aged ______ years, Hereinafter to be called as THE SECOND PARTY (Continuing Partner) and__________, son of _________, resident of_________, aged _______ Years, Hereinafter to be called as THE THIRD PARTY (Retiring /Deceased Partner)

WHEREAS the parties made a partnership deed among them dated on _____ and carrying on the business in the name and style of________, which is at__________, on the terms and conditions under the partnership deed executed on_________.

AND WHEREAS the Retiring Partner has given notice to the Continuing Partners of his desire to retire from the said partnership as from the______ day of _______.  

WHEREAS the parties to the agreement mutually agreed to dissolve the partnership on_____ day of______.

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 :—

1. The partnership firm has its registered office at _________ with registered no._______, shall be determined and stand as dissolved from______ day of _______
2. A general book of accounts and a balance sheet have been taken out by the parties showing the net value of assets and all the debts and liabilities of the said firm till the date of dissolution and share of retiring/deceased partner has been computed at Rs.________ and shall be signed by all the partners.
3. As from the said date the Continuing 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.
4. The Continuing Partners agree to pay all the debts and liabilities of the said Firm and to Indemnify and keep Indemnified the Retiring/deceased Partner against all such debts and liabilities and all loss, costs, charges and expenses that the Retiring/deceased Partner may Incur or suffer on account thereof in instalments of Rs. ___________ per month.
5. The retiring/deceased partner is entitled to his share in the profits till the date of his retirement in the profit sharing ratio  given in the partnership deed.
6. That if a member is died, and no settlement of accounts has taken place, then he is entitled to such profits which had been made till the former partner ceased to be a partner.
7. The continuing partners shall pay to the legal heir of deceased partner his share of firms assets including his estate after paying the debts and liabilities of the firm till the date of his death.
8. The continuing partners shall indemnify for the delay of financial entitlements of the retiring/deceased partner.
9. The continuing partner shall publish in the official gazette about the retirement or death of the partner.

 

IN WITNESS WHEREOF the parties to this deed have set and subscribed their respective hands and seals on the day, month and year first above written.

 SIGNED SEALED AND DELIVERED in the presence of

(Signature of all the Parties)