JOINT VENTURE AGREEMENT
This Agreement is made at Chandigarh on 2 April 2026.
BETWEEN
Singh Constructions Private Limited, of SCO 90, Sector 20-C, Chandigarh 160020, PAN AKJPI4432R, acting through Gurdev Singh, Director (the "First Party");
AND
Kaur Hospitality LLP, of House No. 77, Sector 8, Panchkula 134109, PAN AKJPI4432R, acting through Manpreet Kaur, Designated Partner (the "Second Party").
The First Party and the Second Party are together the "Parties".
- 1. THE VENTURE
1.1 The Parties form a joint venture (the "Venture") from 1 April 2026 for this project only: To build and run a 40-room business hotel on plot 14, Phase 9, S.A.S. Nagar (Mohali), under the name "Orchard Suites".
1.2 The Venture trades under the name Orchard Suites. It is a contractual arrangement between the Parties and is not a company or a limited liability partnership. Neither Party may bind the other, or the Venture, to anything outside clause 1.1 or beyond the limits in clause 3 without the other's written consent. Except as this Agreement says, the Parties are not partners in each other's other businesses.
- 2. CONTRIBUTIONS
2.1 The First Party shall contribute: Rs 3 crore in cash in instalments, and the construction work at cost plus 8 per cent, supervised by its engineers.
2.2 The Second Party shall contribute: The plot on a 30-year lease at an agreed value of Rs 4 crore, Rs 1 crore in cash, and its hotel-operating experience and brand.
2.3 A contribution is made on the dates and in the manner stated, and is recorded in the Venture's books at the value stated. If more money is needed, it is called by the manager in writing and provided by the Parties in the proportion of their shares in clause 3.1, and a Party that does not provide its part within thirty days may be diluted or lend the amount to the other as the Parties then agree in writing. Neither Party is bound to put in more than it has agreed to without its written consent.
- 3. SHARING AND CONTROL
3.1 The profits and losses of the Venture belong to the Parties in these shares: 50 per cent to the First Party and the balance to the Second Party. Profits that can safely be distributed, after meeting costs, taxes, loan repayments and a reasonable reserve, shall be paid out every 3 months.
3.2 The Venture is managed day to day by the First Party (the "Manager"). A committee of two members, one named by each Party, decides the matters that need both Parties' approval: the annual budget; any single spend or contract above ₹2,00,000 (Rupees Two Lakh only); borrowing or giving security; buying or selling an asset of the Venture outside the ordinary course; admitting a new party; changing the project; and winding the Venture up. These matters need both members' written approval.
3.3 If the committee cannot agree on a matter within thirty days, either Party may refer it to a senior representative of each Party who shall meet and try in good faith to settle it within a further fifteen days. If still unresolved, the matter is a dispute under clause 8, and until it is resolved the Venture continues as before without the proposed step.