DEED OF DISSOLUTION OF PARTNERSHIP BETWEEN TWO PARTNERS, ONE PURCHASING THE SHARE OF THE OTHER
THIS DEED is executed on this _____ day of __________ between:
Sh.______ s/o, Sh. __________, r/o of ___________,
(hereinafter referred to as "the retiring Partner") of the one part
Sh._________ s/o, Sh. __________, r/o of ___________, hereinafter referred to as "the continuing partner") of the other part
The retiring partner and the continuing partner hereinafter collectively referred to as the "Parties".
1. The Parties hereto were carrying on the business of ________ in partnership together under the firm name M/s ________ vide terms of a deed of partnership dated _________ (hereinafter called "the partnership business")
2. The parties hereto have decided that the partnership business shall be dissolved by mutual consent as from the date hereof and the continuing partner shall henceforth carry on the said business alone.
NOW THIS DEED WITNESSETH AS UNDER:
1. Assignment of Rights by Retiring Partner
In consideration of a sum of Rs. _______ paid by the continuing partner to the retiring partner (the receipt of which the retiring partner hereby acknowledges) and of the sum of the Rs.__ _____ hereinafter agreed to be paid by the continuing partner to the retiring partner, the retiring partner hereby assigns to the continuing partner all his share and interest in the said partnership business and in goodwill, property, assets and book debts thereof and To Hold the same to the continuing partner absolutely.
2. Continuing Partner to Discharge Future Debts and Liabilities
The continuing partner hereby covenants with the retiring partner that he shall pay, discharge and fulfil all debts, liabilities and obligations of the partnership business and at all times keep indemnified the retiring partner and his legal representatives against all such debts, liabilities and obligations and from all proceedings, costs, claims and expenses in respect thereof.
3. Release by Partners to Each Other
Each of the parties hereto hereby releases the other from all proceedings, accounts, costs, claims and demands in respect of the partnership business but without prejudice to any rights or remedies under the provisions of this deed.
4. Retiring Partner's covenant not to engage in similar activity
The retiring partner hereby covenants with the continuing partner that he shall not during a period of ____ years from the date hereof carry on or engage or be concerned or in any way interest himself directly or indirectly in the business of _________
IN WITNESS WHERE OF, the parties have set their hands this _______ day of ________ .
The Retiring Partner
The Continuing Partner