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Deed of Partnership Dissolution

This document summarizes the dissolution of a partnership firm called Chai Party Pvt. Ltd. between three partners - Mohini Kumari, Jayshree, and Kumari Monika. The partnership was originally formed on March 18, 2015. It has now been mutually decided to dissolve the partnership as of April 1, 2019. The document outlines the process for winding up the business, distributing assets and liabilities proportionately, and releasing each other from future claims related to the partnership. The three partners signed the deed of dissolution on April 1, 2019 in Patna, Bihar to officially end the partnership.

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Pritam Ananta
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204 views2 pages

Deed of Partnership Dissolution

This document summarizes the dissolution of a partnership firm called Chai Party Pvt. Ltd. between three partners - Mohini Kumari, Jayshree, and Kumari Monika. The partnership was originally formed on March 18, 2015. It has now been mutually decided to dissolve the partnership as of April 1, 2019. The document outlines the process for winding up the business, distributing assets and liabilities proportionately, and releasing each other from future claims related to the partnership. The three partners signed the deed of dissolution on April 1, 2019 in Patna, Bihar to officially end the partnership.

Uploaded by

Pritam Ananta
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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  • Witnesses
  • Provisions of Dissolution
  • Preamble

Deed of Dissolution of Partnership Firm

  THIS DEED OF DISSOLUTION OF PARTNERSHIP made the 1st day of April, 2019  

BETWEEN

Ms. Mohini Kumari , D/O- Brijkishor Prasad, Residing at Thawe, Gopalganj, Bihar,
hereinafter referred to as the “First Party”.  

Ms. Jayshree, D/O- Rajendra Prasad, Residing at Digha Ghat, Patna, Bihar, hereinafter
referred to as the “Second Party”.  

Ms. Kumari Monika, D/O- Krishna Verma, Residing at Anand Vihar, Mujaffarpur, Bihar ,
hereinafter referred to as the “Third Party”.  

WHEREAS the partners hereto under a deed of partnership dated 18th March, 2015 made
between them formed themselves into a Partnership Firm and carried on business under the
name and style of Chai Party Pvt. Ltd. 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:  

1. The said partnership between the partners hereto under the deed, dated 14th
November, 2015(Fourteenth November of Two thousand Fifteen) hereunto appended
shall be determined and stand dissolved as from the 1st day of April, 2019. And the
parties hereto singly or jointly shall not carry on the business of the said firm of Chai
Party Pvt. Ltd under the said name and style for a period of 10 years ( Ten Year)
hence.
2. The parties hereto shall on the aforesaid date of 1st day of April, 2019 ( First April of
Two thousand Nineteen) sign notices of the dissolution and will intimate the fact of
dissolution to Income Tax of India.
3. 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.
4. 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.
5. 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.
6. 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, 2019.

NAME OF PARTNERS                                                                        WITNESS  

1. Mohini Kumari        First Party


2. Jayshree   Second Party
3. Kumari Monika         Third Party

Place : Patna, Bihar    

Date:  1st April 2019

Common questions

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The deed requires each partner to execute necessary releases and indemnities, ensuring no future claims against one another concerning the partnership, which limits legal disputes post-dissolution .

The parties are responsible for signing notices of the dissolution and intimation to the Income Tax of India about the dissolution on the specified date .

The deed stipulates that the partners or a jointly appointed third party will create the final account and balance sheet. This person's decisions are explicitly stated to be final and binding .

Having a witness during execution ensures that the dissolution is legally valid and adds credibility to the document, potentially defending against future legal disputes .

Balance sheets offer a comprehensive overview of the firm's finances, helping to divide assets and liabilities correctly and ensuring equitable distribution among partners .

The partners agree that the partnership will be dissolved on April 1, 2019, and neither party will carry on business under the firm's name for 10 years. They must sign notices of dissolution and inform the Income Tax of India. A full account and balance sheet are to be created within 30 days, and the assets distributed according to initial capital contributions .

The clause legally obligates the parties not to conduct business under 'Chai Party Pvt. Ltd.' for 10 years, possibly to prevent competition and protect intellectual property .

If the winding up shows a loss or assets are insufficient to meet liabilities, the partners must pay the losses proportionally to their capital contributions .

A predetermined loss management plan ensures that partners understand their financial obligations, maintains fairness, and reduces potential conflicts over financial disparities during dissolution .

A full account and balance sheet must be prepared within 30 days post-dissolution. The assets should be apportioned based on capital contributions, including earlier due amounts. Liquidation costs are a partnership liability .

Deed of Dissolution of Partnership Firm   THIS DEED OF DISSOLUTION OF PARTNERSHIP made the 1st day of April, 2019   BETWEEN M
partnership shall be taken into account. That the cost of liquidation proceedings shall also be deemed to be a liability of t

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