DEED OF DISSOLUTION OF PARTNERSHIP

THIS DEED OF DISSOLUTION is executed at [City] on this [Date], between:

1. [Name of the First Party], son of [Father’s Name], residing at [Address], hereinafter referred to as the “First Party” (which expression shall, unless repugnant to the context or meaning thereof, include his heirs, executors, administrators, and legal representatives);

AND

2. [Name of the Second Party], son of [Father’s Name], residing at [Address], hereinafter referred to as the “Second Party” (which expression shall, unless repugnant to the context or meaning thereof, include his heirs, executors, administrators, and legal representatives).

WHEREAS

• The parties hereto were carrying on business in partnership under the name and style of M/s [Partnership Firm Name], from the premises situated at [Address], under a Partnership Deed executed on [Date of Partnership Deed].
• The parties have mutually decided to dissolve the partnership and to record the terms and conditions of this dissolution.

NOW, THEREFORE, THIS DEED WITNESSES AS UNDER:

1. Dissolution of Partnership
   The partnership constituted by the parties hereto under the Partnership Deed dated [Date], operating under the name and style of M/s [Firm Name], at [Address], stands dissolved with effect from [Effective Date].

2. Settlement of Accounts
   The accounts of the partnership have been examined, agreed upon, and settled between the parties. All profits, losses, debits, and credits recorded in the books of accounts up to the date of dissolution are acknowledged and accepted by both parties.

3. Custody of Records and Obligations of the First Party
   All books of accounts, records, and other documents pertaining to the dissolved partnership have been handed over to the First Party, who shall:
   a) Notify all relevant authorities about the dissolution.
   b) Be responsible for completing any pending assessments or formalities.

4. Access to Records
   The First Party shall provide reasonable access to the books of accounts or other records of the partnership to the Second Party, as and when required, for any legal or official purpose.

5. Liability for Taxes
   Each party shall individually bear and be liable for their respective tax obligations. Any taxes or liabilities raised in respect of the dissolved partnership shall be borne by the parties in proportion to their profit-sharing ratio as per the Partnership Deed.

6. No Liability for Post-Dissolution Actions
   Neither party shall be held liable for any acts, debts, or obligations incurred by the other party in the name of the erstwhile partnership after the dissolution.

7. Mutual Release
   The parties mutually release and discharge each other from all claims, demands, actions, or proceedings arising out of or related to the dissolved partnership, except for obligations expressly mentioned in this Deed.

8. Dispute Resolution
   Any disputes arising out of or in connection with this Deed shall be referred to arbitration under the provisions of the Arbitration and Conciliation Act, 1996. The Sole Arbitrator shall be appointed by mutual consent, and the seat of arbitration shall be [City].

IN WITNESS WHEREOF, the parties have signed this Deed of Dissolution on the date first mentioned above, in the presence of the following witnesses:

First Party: [Signature]
Second Party: [Signature]

Witnesses:

1. [Name & Address of Witness 1]
2. [Name & Address of Witness 2]

This format comprehensively adheres to Indian legal standards, including references to tax liabilities, dispute resolution mechanisms under the Arbitration and Conciliation Act, 1996, and ensures proper documentation of the mutual settlement and release of obligations.