DEED OF PARTNERSHIP FOR A FIXED PERIOD OF 5 YEARS TO DEVELOP AGRICULTURAL LAND AND TO RUN A MECHANIZED AGRICULTURE FARM.
THIS DEED OF PARTNERSHIP made on this ........................t day of the month of ………..by and between Shri ......................., S/o......................., R/o.................., hereinafter called the first party and Shri .............., Son of .................., hereinafter called the Second Party.
WHEREAS Shri ..................., the first party is the owner of agricultural lands Khasra No.............., in village......................
AND WHEREAS both the first party and the second party are desirous to enter into partnership to develop and cultivate the said agricultural lands, and to sell the produce thereof and to share the profits:
BOTH the parties hereby agree and enter into partnership on the following terms and conditions:
1. That the said partnership firm shall be styled as ............................
2. That the partnership shall commence w.e.f.....................1st day of………………..
3. That the First Party shall provide or arrange for all the capital needs for the efficient conduct of the work and business of the partnership firm.
4. That an interest at the rate of ............................... cent per annum shall be paid on capital invested by the parties, provided that the value of the land, which belongs to the First Party, shall not form part of his capital investment and shall in no case be deemed to be an asset of the partnership firm, and thus, no interest shall be payable on such value of the land.
5. That the business of the partnership firm shall be:
(a) to establish and manage agricultural farms, dairies, poultry farms and transport services;
(b) to construct and maintain surface wells, tube-wells, channels, canals or any other means of irrigation;
(c) to develop agricultural lands;
(d) to form or float co-operative societies or limited companies and to become members, shareholders or managing agents of the same;
(e) to buy and sell lands, machinery, implements, oils, seeds, manure, produce, cattle, animals or birds.
(f) to make advances, land moneys and/or to raise loans for the efficient working of the business of the partnership firm;
(g) to carry on propaganda for the improvement of the conditions of rural life in general and the methods of agriculture and cultivation in particular;
(h) to carry on such other business as may mutually be agreed upon by the parties;
(i) generally to do all such acts, deeds and things as may appear incidental or conducive to the business of the partnership firm set forth above.
6. That neither of the two parties shall carry on separately any business which the partnership firm is doing. All the business conducted or carried on by either of the parties alone at the lands referred to in the preamble of these presents shall be deemed to be a business of the partnership firm.
7. That the lands referred to in the preamble of these presents are owned by the First Party and shall continue to be owned by him. The partnership firm shall be in possession of and entitled to use the above lands for agricultural, industrial or any other purpose of the business of the partnership firm and shall pay Rs. 70 per Acre per month as land rent to the First Party for the lands, belonging to the First Party.
8. That the rate of land rate shall be increased after every three years by ten per cent. The amount of land rent paid to the First Party shall be debited to expenses of the firm.
9. That none of the parties alone, i.e., neither the First Party alone nor the Second Party alone, shall be entitled to raise loan in the name of or on behalf of the partnership firm by executing promissory note, or any other documents.
10. That except as otherwise provided by these presents, no document shall be binding on the partnership firm unless it bears signature of both the parties.
11. That the final accounts of the partnership firm shall be made and the balance sheet and the profit & loss accounts prepared annually as on the 31st March of every calendar year, unless the parties mutually decide otherwise. On making up the accounts, the profit and losses, if any, shall be posted to the accounts of the parties in the books of the partnership firm.
12. That both the partners after the business of the firm. That an allowance of Rs. 1500 per month shall be paid to each of the parties and debited to expenses.
13. That after providing for all the expenses, interest, cost of seeds and manure, depreciation of machinery, labour, salaries, allowances, brokerage, commission, land rent and other dues payable by the partnership firm, the profit and loss of each year shall be divided between the two parties in the ratio of .....................
14. That in addition to allowance referred to in clause 14 above, both the parties shall be further entitled to a commission at the end of each year, which after including the total amount of allowance payable to the aforesaid partners during the year, shall be equal to the sum computed according to the method of computation as laid down in Sub Clause (v) of Clause (b) of Section 40 of the Income Tax Act and as reproduced below:
er of the parties revoke this partnership at any time during the period of the initial 5 years after which the partnership shall automatically stand dissolved unless otherwise agreed amongst the parties.
16. That the management and conduct of the business of the partnership firm shall be in the hands of both the parties, both of whom shall be ordinarily expected to reside at or near the farms for the general administration, management and superintendence of the business of the partnership firm and the two parties shall divide and distribute the work amongst themselves as mutually agreed by them and as deemed necessary and expedient for the efficient carrying on of the works and business of the partnership firm. The Second Party shall keep the account of all receipts and payments and all other transactions pertaining to the business and shall prepare statement of income & expenditure and Balance Sheet.
17. That matters of general policy, details of starting any scheme or work shall be decided by mutual consent of the parties.
18. That all moneys belong to the partnership firm and not immediately required shall be deposited with such bank or bankers as may be mutually agreed upon by the parties from time to time. The Firm's Account shall be opened in SBI, Jodhpur and shall be operated by either of the partners.
19. That any dispute arising in relation to this partnership between the parties hereto shall be referred to arbitration.
IN WITNESS WHEREOF the First and the Second party do hereby set their respective hands up to this document on the date, month and year as mentioned here-in-above.