Mr.

Mushtaq Usmani (Plaintiff)

V/s
Mr. Akhyar Tahir (Defendant)

On 24th of October 2006 at Karachi, Mr. Mushtaq

Usmani (plaintiff) and Mr. Akhyar Tahir (Defendant)
both formed partnership agreement. They signed
partnership deed and the content of partnership deed
is given below:

• That the partnership business shall be carried out

in the name and style of Usmani Computers.

• It is mutually decided to start business on the

following address A -33/8

• That this partnership will be at WILL from both

sides.

• That this partnership Agreement will be valid for

TWO YEARS, from October 2006 to June 2008.
• That the business will be deemed to commence on
1st November of 2001.

• That the first party Mr. Akhyar Tahir has provided

shop for the business which is immovable capital
and Second party Mr. Mushtaq Usmani has
provided the amount of 350,000 Rs which is
movable capital.
• That both the partners shall distribute profit and
loss at the end of the year after adjustment of all
and sundry expense in the following ratio.
First Party 40%
Second Party 60%

• That both the parties will share or distribute profit

after every three months.
• That the business year of the partnership is
effective from 1st November and end at 30th June.

• That all the expense of the business includes

utilities, taxes, cases and all miscellaneous
expense shall be adjusted and deducted from the
profit of the firm and the balance shall be
distributed amongst the partner written above.

• That both the partner shall work honestly and

diligently to make the business a success.

• That any term and condition not mentioned in the

partnership agreement the all sections of
partnership act 1932 as applicable in Pakistan shall
be applied.

Further irrelevant contents of this partnership deed

have been ignored. For the first 3 months their
business sprays because on 6th January Usmani
shop has been robbed of THREE computers, TWO
monitor and cash of Rs 120,500. Total
Accumulated losses were around Rs. 300,000.
Hence, after losses Second party Mr. Mushtaq
Usmani again invested Rs. 200,000 for
establishment of their business. Hence editing
profit content of their partnership deed and both
the party signed an agreement that in profit there
will be no 40% and 60% share but it will be 80%
for second party Mr. Mushtaq Usmani and 20% for
first party Mr. Akhyar Tahir.
After 6 months they gain a profit of Rs. 670,000
after deducting all other expenses. Now as per
condition, Mr. Mushtaq will receive Rs. 536,000
and Mr. Akhyar Tahir will receive Rs. 134,000. But
because of some family matters Mr. Akhyar asked
Mr. Mushtaq to pay him Rs. 300,000 which he will
return from his next tenure profits. Mr. Mushtaq
realizes his crisis and gives him desired amount
from his own profit.
After 3 months they gain profit of Rs. 400,000.
Again as per condition Mr. Akhyar will gain Rs.
80,000. And Mr. Mushtaq will receive Rs. 320,000.
Mr. Akhyar asked him to not to take his share from
his profit and allow him time for recovery. Mr.
Mushtaq regrets because he too suffering from
some personal problems but Mr. Akhyar manages
to convince him and told him that he will pay his
entire amount in next profit sharing date.
 On July 15th 2007, on a profit sharing date Mr.
Mushtaq asked him to pay him back his entire
amount i.e. Rs. 300,000 because this time profit
gained by the shop is not convincing. But Mr.
Akhyar again asked time from him but Mr. Mushtaq
did not allow him due to which, Mr. Akhyar started
abusing him and stated to him that he is not going
to give him a single penny and also he verbally say
that he don’t want to keep this business alive as
he is now out from the business. Then on 2nd of
August Mr. Mushtaq Suits a case against Mr.
Akhyar in the court of civil 3rd class.

ACT AND SECTION:

• This case is registered and treats under
Partnership Act of 1932.
• Under Section 13(b) of Partnership Act 1932 state
that there should be sharing of profit as in the
terms and condition written in Partnership Deed
and in this case terms and condition of sharing a
profit is violated.
• Under Section 7&8 of Partnership Act 1932 state
that the duration of business shall be fixed and Mr.
Akhyar verbally said he want to terminate the
business.
• Under Section 9 of Partnership Act 1932 state that
both partners should be loyal , faithful to each
other and in this case Mr. Akhyar show his
unfaithfulness to his partner Mr. Mushtaq Usmani.

DECISION OF COURT:
• Mr. Akhyar Tahir (Defendant) has to pay Mrs.
Mushtaq Usmani (plaintiff) a sum amount of
300,000 Rs before the end of January 2008.

• Both the partners can complete their partnership

duration term if they willing to be, as there is only
6 months left in the termination of their
Partnership Deed.