A partnership firm has done a supplementary deed to modify one clause other than change in stake,address etc. Would like to know, for modification of which clauses is it mandatory to register the supplementary deed.
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1) a partnership deed may be registered or may not be registered
2) if suit is for accounts or dissolution of firm not necessary to register partnership
3) only when suit is filed to enforce right under contract or conferred under partnership act registration is necessary
4) for change in partners , address etc supplementary deed is to be prepared
5) not mandatory to register supplementary deed
The format of supplementary deed is given below which will explain everything and solve your purpose:
AGREEMENT MODIFYING THE PARTNERSHIP DEED
THIS DEED is made at ................ on this .................. day of ............., 2000,
between A, son of ....................... resident of .................... of the ONE PART and B, son of
................... resident of ...................of the SECOND PART and C, son of .........................
resident of ................................... of the THIRD PART.
WHEREAS the parties hereto are carrying on the business of ............... under
the name and style of M/s. ......................................... at .................... upon the terms and
conditions contained in Deed of partnership dated ............................;
AND WHEREAS clause ............................ of the said partnership deed provides
that all the partners will devote their whole time and attention to the business of the
partnership;
AND WHEREAS clause ...................... of the said partnership deed further
provides that no partner shall without the consent of the other partners engage directly or
indirectly in any business other than that of the partnership;
AND WHEREAS A, one of the partners, has been offered an assignment by
................................ which shall be completed within a period of ..................... years and
the said partner will have to stay in ....................... during the said period while
undertaking the said assignment;
AND WHEREAS the said partner has requested for the consent of the other
partners for acceptance of the assignment offered to him by ................... and they have
agreed to give consent to A to accept the said assignment and it has been agreed that so
long as he remains outside ................... for the said assignment, the partnership deed
shall be varied in the manner and to the extent hereinafter appearing:
NOW THIS DEED WITNESSETH AS FOLLOWS:
1. This Deed is supplemental to the Deed of Partnership dated ..................... and made
between the said parties.
2. During such period as the said partner A shall remain out of ............... for the
assignment and does not attend to the business of the partnership, he shall be
entitled only half his share of the net profits of the partnership instead of ................. %
profits to which he is entitled under clause .................... of the Deed of Partnership
and the balance of share of profits to which but for this deed the said A would have
been entitled shall be divided between the other partners in equal proportion.
3. The said A shall not be liable to give account to the partnership for any remuneration
or other advances received by him from the .................... for the said assignment.
4. A shall not be entitled to any remuneration from the partnership account during his
absence pursuant to clause ......................... of any the Deed of Partnership.
5. The terms and condition of the Deed of Partnership dated ............. shall except in so
far as the same are modified by this agreement, continue in full force and effect.
IN WITNESS WHEREOF the parties hereto have hereunto put and subscribed
their respective hands ............................ the day and year first hereinabove written.
Signed and delivered by the within named A
Signed and delivered by the within named B
Signed and delivered by the within named C
WITNESSES;
Partnership registration is mandatory to avail bank finance. In the concerned case supplementary deed has been prepared in order to modify a clause related to selling, assigning, mortgaging, pledging the share of partners in partnership firm "without consent of other partners " has been added. Is it mandatory to register this supplementary deed for purpose of bank finance being availed.
If the original partnership deed was registered then it becomes essential to register the subsequently made supplementary deed too without which it may not be recognised as valid deed.
Bank would insist on registration of supplementary deed as it relates to modification of sale , mortgage share of partners
If the original partnership deed is registered the omission to register the supplementary partnership deed will render the amended clauses in the latter unexecutable. So register it.
