Agreement for Hire of
Machinery

An Agreement made the
………….. day of ………………., 2000, between a son of B resident of
……………………………….. (hereinafter called the
“Owner”) of the ONE PART and C son of D resident of ………..
(hereinafter called the “Hirer”) of the OTHER PART.

Whereas the owner is the
owner of the machinery and is not being used by him, as he has closed his
factory due to his personal reasons;

and Whereas on the request of the
hirer, the owner has agreed to hire give the said machinery on hire to the
hirer on the terms and conditions machinery hereinafter appearing.

Now These Presents
Witness as Follows:

1.    
The
owner shall let and the hirer shall take on hire the machinery, specified in
the Schedule hereunder written (hereinafter referred to as the said machinery)
from …………… for a term of …………. years.

2.    
The
hirer shall, during the continuance of this agreement, pay to the owner without
previous demand by way of rent for the hire of the said machinery the monthly
sum of Rs……………. for the use and possession of the said machinery, the
first payment to be made an the ………… day of ………… 19 ……..
next and each subsequent payment on the …………… day of each succeeding
month during the said term.

3.    
The
hirer will not sell, assign, mortgage, pledge, underlet or otherwise deal with
the said machinery but will keep the said machinery in his own possession and
will not remove the said machinery from the premises where such machinery is
for the time being installed without the previous consent in writing of the
owner.

4.    
The
hirer shall use the said machinery in a skilful and proper manner and shall at
his own expenses keep the said machinery in good and substantial repair and
condition (reasonable wear and tear excepted) and will allow the owner, his
servants or agents at all reasonable times to have access to the said machinery
and to inspect the state and condition thereof.

5.    
The
hirer shall keep the said machinery insured in the sum of Rs …………….
against fire and loss, damage or risk from whatever cause arising with some
insurance company in the name of the owner and deliver the policy of such
insurance to the owner and duly and punctually pay all premium necessary for
effecting and keeping such insurance in force and produce the receipt for all
such payments to the owner on demand and will keep the owner indemnified
against all loss or damage to the said machinery from whatever cause the same
may arise.

6.    
If
the said machinery is destroyed by fire or lost by theft, all moneys received
in respect of such insurance shall be received by the owner, who may apply such
moneys either in making good the damage done or in replacing the said machinery
by other articles of similar description and quality and such substituted
articles shall become subject to hire in the same manner as the articles for
which they shall have been substituted.

7.    
The
hirer may at any time determine the hiring by giving …………. months
notice and the hiring shall from the expiration of the said notice determine
and the hirer shall not be entitled to any credit or allowance in respect of
any payment previously made by him to the owner.

8.    
If
the hirer shall make default in punctual payment of the monthly sums so to be
paid by him for the hire of the said machinery or if he shall fail to observe
and perform the terms and conditions of this agreement on his part to be
observed and performed, the owner may determine the hiring without any notice
and it shall be lawful for him to retake possession of the said machinery and
for that purpose the owner, his servants or agents may enter into or upon any
premises where the said machinery is installed and the hirer will remain liable
for the payment of money due to the owner under this agreement or damages for
breach thereof.

9.    
The
hirer hereby covenants with the owner that he will not do or omit to do any act
which may result in seizure and/or the confiscation of the said machinery by
the Central or State Government or local authority or any public officer or
authority under any law for the time being in force.

10. 
The
hirer shall pay all licence fees, taxes, etc. payable to the Government, local
authority in respect of the said machinery and if the owner is compelled to pay
such licence fees, taxes, etc., the hirer shall forthwith repay the said
amounts paid by the owner.

11. 
Any
time or indulgence granted by the owner shall not affect the strict rights of
the owner under this agreement.

12. 
In
case of any dispute or difference arising between the parties regarding the
meaning, construction, interpretation, breach or fulfillment or non-fulfillment
of the terms and obligations of these presents or any clause or condition thereof,
the same shall be referred to the decision and arbitration of two arbitrators,
one to be nominated by each party which arbitrators shall before taking upon
themselves the burden of reference, appoint an umpire. The submission shall be
deemed to be a submission to arbitration within the meaning of the Indian
Arbitration Act, 1940 or any statutory modification thereof. The award of the
Arbitrator or Arbitrators, as the case may be, shall be final and binding on
the parties.

13. 
The
stamp duty and other incidental expenses relating to the execution of this
Agreement will be borne by the hirer.

IN WITNESS WHEREOF,
the parties hereto have executed these presents, the date, month and year first
hereinabove mentioned.

The Schedule above
referred to

Signed and delivered
by A, the within named owner

Signed and delivered
by C, the within named hirer

WITNESSES;

1.

2.

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