Partnership Deed and its Provisions

Introduction
A partnership deed is a legal document that outlines the terms and conditions agreed upon by partners when establishing a partnership. It serves as the foundation of the partnership and governs the rights, responsibilities, and obligations of each partner. In India, partnership deeds are drafted in accordance with the provisions of the Partnership Act, 1932.

Partnership Act, 1932
The Partnership Act, 1932 is the legislation that governs partnerships in India. It provides the legal framework for the formation, operation, and dissolution of partnerships. Therefore, partnership deeds are drafted as per the provisions of the Partnership Act, 1932.

Contents of a Partnership Deed
A partnership deed typically includes the following provisions:

1. Name and Address: The partnership deed starts with the name and address of the partnership firm.

2. Nature of Business: It specifies the nature of the business that the partnership intends to carry out.

3. Duration: The partnership deed mentions the duration of the partnership, i.e., whether it is for a fixed period or indefinite.

4. Capital Contribution: The partnership deed outlines the capital contribution made by each partner. It specifies the amount contributed and the mode of payment.

5. Profit Sharing Ratio: The partnership deed determines the ratio in which profits and losses will be shared among the partners.

6. Rights and Duties of Partners: It defines the rights, duties, and responsibilities of each partner in the partnership.

7. Decision-Making Process: The partnership deed specifies the decision-making process, such as voting rights, quorum, and procedures for resolving disputes.

8. Withdrawal and Retirement: It outlines the procedures for withdrawal or retirement of a partner from the partnership.

9. Dissolution: The partnership deed includes provisions for the dissolution of the partnership, including procedures for winding up and settlement of accounts.

Stamp Act
The Stamp Act is a legislation that governs the stamp duty payable on various legal documents, including partnership deeds. It requires partnership deeds to be executed on non-judicial stamp paper, with the amount of stamp duty varying from state to state.

Conclusion
A partnership deed is a crucial document that establishes the rights and obligations of partners in a partnership. It is drafted as per the provisions of the Partnership Act, 1932, which governs partnerships in India. Additionally, the Stamp Act requires partnership deeds to be executed on non-judicial stamp paper, with the applicable stamp duty varying across states.