Indemnity Deed Of Indemnity By The Partner Retaining Assets And Liabilities To A Partner On The Dissolution Of The Partnership Firm

Deed of Indemnity by the Partner Retaining Assets and Liabilities to a Partner on the Dissolution of the Partnership Firm

This Deed of indemnity made at ____________________ on this _______________. day of ____________________., 2000, between A son of Shri _______________. resident of ___________________________________ (hereinafter referred to as "A") of the One Part and B son of Shri _________________________ resident of _____________________________________ (hereinafter referred to as "B') of the Other Part.

Whereas A and B had entered into a partnership by a deed of partnership dated __________________ to carry on the business of _______ under the name and style of M/s. __________________________________ at ___________

And Whereas certain disputes and differences arose between A and B and A and B decided to dissolve the said partnership.

And Whereas A and B dissolved the said partnership with effect from vide Deed of Dissolution dated _________________

And Whereas under the said dissolution deed, A has taken Rs. _______________ as his share, for which he had issued receipt and discharged 8 of and from all his claims and every part thereof in the assets of the partnership and B has retained the assets of the partnership including goodwill, stock-in-trade valued at Rs. ____________ and has agreed to discharge the debts and liabilities of the partnership valued at Rs. _______________.

And Whereas the partners by a public notice dated ___________________ published in _____________________________ and ____________________. in their issues dated _________________ have notified about the dissolution of partnership and vesting of assets and liabilities of the partnership in the said B from the date of dissolution of the partnership.

And Whereas the said A has requested B to indemnity the said A from any claim which may be made against him by the creditors of the partnership, to which f3 has agreed.

Now This Deed Witnesses That;

1. In pursuance of the said agreement and in consideration of the premises, the said B hereby agrees to indemnify and keep indemnified the said A, his heirs, successors or assigns from and against all claims, demands, actions, proceedings, losses, damages, recoveries, judgments, costs, charges and expenses which may be made or brought or commenced against the said A or his heirs, successors or assigns or which the said A or his heirs, successors or assigns may or may have to bear, pay, or suffer directly or indirectly on account of the debts and liabilities of the said dissolved partnership for the period upto the date of dissolution and thereafter.

2. The said B hereby covenants that he shall pay the income-tax, sales tax in respect of the partnership business upto the date of dissolution, but A shall be liable to pay income-tax on his income as a partner up to the date of dissolution of the partnership and liability on that account is not covered by indemnity herein contained.

IN WITNESS WHEREOF, the parties hereto have signed these presents on the day, and year hereinabove written.

Signed and delivered by the within named A

Signed and delivered by the within named B

WITNESSES;

1.

2.