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Partnership Deed: Consequences of Non-Registration

In the pivotal case of 2016 CLD 388 SC, the Supreme Court of Pakistan rendered a decision that underscores the critical importance of registering partnership deeds under section 69 of the Partnership Act 1932.

The SC stipulated that a partner in an unregistered firm is precluded from suing the firm or any of its partners, current or former, to enforce a right bestowed by the Act or emanating from the partnership agreement, including right to profits. Furthermore, an unregistered firm is barred from instituting a lawsuit against any third party to enforce a right that stems from a contract. These prohibitions also apply to claims of set-off or other proceedings aimed at enforcing a contract-based right.

Nonetheless, these impediments it was held do not extend to the right to sue for dissolution, for accounts of a dissolved firm, or to claim the property of a dissolved firm. They also do not hinder the power to recover an insolvent partner's property.

Significantly, the SC highlighted that a suit in relation to an unregistered partnership deed could face dismissal upon filing of a O. 7 R. 11 application under the CPC.

This landmark ruling underscores the vital need for registering partnership agreements to safeguard rights under the Act. It serves as a crucial reminder to all entities engaged in partnership arrangements to register their partnership deeds properly, thereby circumventing potential legal predicaments in the future.

Release of vehicle 516(a) of Code of Criminal Procedure
1. Bona-fide Purchaser of Motor Car taken in custody by police under S. 550 granted Spurdari on verbal prayer for Spurdari made at time of bearing application under section 497/498.[1]
2. Application and scope- property claimed by an actual owner in respect whereof some offence had been committed could be restored even on personal bond what to say of the surety or security.[2]
3. Registration Book of the car in question was in the name of the petitioner car though allegedly was used for transportation of liquor but the same itself was not such a property as had been described in proviso of section 516-A Cr.PC Car was subject to decay and deterioration.[3]
4. Vehicle Superdari of – Petitioner claiming ownership of the same Held that: As the vehicle was not a stolen property and as it apparently belonged to the petitioner it is directed that the same be handed to him on his furnishing two securities with the undertaking that he would produce before the court when so required.[4]
5. If the police is definite about the title of the truck, we have no hesitation in concluding that it is neither a stolen property not a property used in the commission of offence and hence the application of sections 523/550 Cr.PC is utterly illegal. The recovery being illegal and without jurisdiction, the question arises as to whom the delivery should be given pending the dispute.
6. Riasat Khan claims to be the purchaser of the truck from the aforesaid absconder Muhammad Saleem many months prior to even the commission of the murder attributed to Muhammad Saleem. He has open transfer letter in his possession. Against this evidence there is nothing in rebuttal with the State except the argument that the registration of MR-1696 pertains to a Bus and not Truck with the Motor Registration Authority at Mardan.
7. Last is the stance of the police that the truck in fact belongs to Muhammad Saleem an absconder. Although the SHO was not very clear on the reason that the truck is taken into possession because it belonged to an absconder yet from the conduct of the police it appears to have been taken into custody under such impression. Even if it is kept in custody under such impression and even if the truck still belongs to Muhammad Saleem, the police cannot acquire the possession thereof without obtaining a warrant under section 88 Cr.PC. It is admitted at the bar the; learned AAG as well as the SHO that no such warrant has so far been obtained. The recovery is unlawful on that score as well.
8. As the vehicle No. MR-1696 is not a stolen property and as it apparently belongs to the petitioner Riasat Khan, is directed to be handed over to him on his furnishing a bond in a sum of Rs. 300,000/- with two sureties to the satisfaction of Deputy Registrar of this Court.
9. Without prejudice it can be expressed that the dispute revolves around the ownership of Car No. LHD 6418. The same could not be taken into possession under section 550 of the Code of Criminal Procedure. The police has coined a device to settle the dispute of civil nature of the instant category by projecting its authority. The contesting parties can get determined their ownership from the competent court. The police has no jurisdiction to decide the dispute about the ownership of the Car.[5]
10. Consequently, I accept this application and pass the order that the Car along-with the Registration Book shall be returned to Abdul Ghafoor. Altaf Hussain, Sub-Inspector/Station Housing Officer (SHO), Police Station, Mankera, District Bhakkar has handed over the key of the Car and the Registration Book to Abdul Ghafoor petitioner who is satisfied. He has gone out, checked the Car and has back.
11. Name in registration Book owner has better title hence entitled to the possession.[6]
12. Principle of possessor.[7]
13. Provision Section 516-A Cr.PC empowered the court to deliver on superdari to any person during pendency of trial, any property regarding which any offence appeared to have been committed. Property was not necessarily to be given on superdari to person from, whose possession it was recovered.[8]
14. Property was not necessarily to be given on superdari to a person from whose possession it was recovered.
15. Delivery to a person entitled to its possession.
16. Name in Registration Book.[9]
17. Property claimed by original owner regarding which an offence has been committed.[10]
18. Condition was to be further deteriorated if the same was not granted as superdari.[11]
19. Revision in Superdari.[12]
20. Real owner should not be deprived of custody.[13]
21. Subject of decay.[14]
22. Two claimants’ Name in Registration Book.[15]
23. The owner has given the vehicle on rent if any offence got committed on it.[16]
[1] 2005 P Cr.L J 533 ALD 2004 2011.
[2] 2004 YLR 943(a) ALD 2016 2004.
[3] 2004 YLR 3198 ALD 2019.
[4] 1997 PLR 537 Abbotabad.
[5] 2001 MLD 670 Lahore.
[6] 2000 YLR 1241.
[7] 2006 P.Cr.LJ 311.
[8] 2004 MLD 1259(a).
[9] MLD 1596.
[10] 2004 YLR 943 (a).
[11] 2004 YLR L 358.
[12] YLR 324 2003.
[13] 1991 MLD 2590.
[14] 2003 YLR 791.
[15] 2003 YLR 2744.
[16] PLD 2003 Pesh 87 (9).

Celebrating the spirit of sacrifice and gratitude on this blessed day of Eid ul Adha. May your faith be strengthened, your joys multiplied, and your blessings abundant. Al Rehman Law Firm wishes you and your loved ones a joyous and memorable Eid!

Through sacrifice and devotion, Hajj teaches us the true essence of faith and unity. Let us embark on this sacred journey, leaving behind our worldly burdens and embracing a profound spiritual transformation.

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In Pakistan, there are two types of divorce, which are:

1: Talaq:
Talaq is the unilateral right of a Muslim husband to divorce his wife by pronouncing the word "Talaq" three times in front of witnesses. Once the Talaq is pronounced, the divorce is considered valid and the couple is no longer married. However, the husband may revoke the divorce during the waiting period (Iddat), which is three menstrual cycles or three months, whichever comes first.

2: Khula:
Khula is the right of a Muslim wife to seek a divorce from her husband on certain grounds, such as cruelty, desertion, or failure to provide maintenance. To seek Khula, the wife must file a case in a family court and prove her grounds for seeking the divorce. If the court finds the grounds valid, it may grant the divorce and the wife may be required to return the dower amount to the husband.

*In addition to these two types of divorce, there is also the option of a mutual divorce or Mubarat, which is a voluntary divorce by mutual consent of both spouses. To seek a mutual divorce, both spouses must agree to the terms of the divorce and file a joint petition in the family court.

On this blessed occasion, let's leave behind our worries and strife, and embrace the spirit of Eid with renewed hope and life. May your celebrations be filled with joy, love, and harmony, and may Allah's blessings shine upon you for eternity.

Eid Mubarak!

Some important skills for legal drafting:

1: Legal knowledge:

A solid foundation in legal principles, rules, and concepts is essential for effective legal drafting. This includes knowledge of the relevant area of law, as well as an understanding of the specific requirements and conventions for the type of document being drafted.

2: Writing skills:

Effective legal drafting requires strong writing skills, including the ability to organize information logically, use clear and concise language, and adapt the tone and style of the document to the intended audience.

3: Attention to detail:

Legal documents must be accurate and free of errors or omissions, so attention to detail is critical when drafting legal documents.

4: Analytical thinking:

Legal drafting often involves complex legal concepts and requires the ability to analyze and apply legal principles to specific situations.

5: Communication skills:

Legal drafting often involves collaboration with clients, colleagues, and other stakeholders, so effective communication skills are essential to ensure that everyone is on the same page and that the document accurately reflects the parties' intentions.

Bail Steps:

In Pakistan, the process of obtaining bail can vary depending on the case's specific circumstances. However, the general steps are as follows:

1: File a Bail Petition: The first step to getting bail in Pakistan is to file a bail petition before the relevant court. The bail petition must provide all the relevant details of the case, such as the charges, the evidence, and the grounds for bail.

2: Attend the Bail Hearing: After filing the bail petition, the court will schedule a hearing to consider the bail application. The defendant and their lawyer must attend the hearing and present their case for bail.

3: Submit Relevant Documents: The defendant or their lawyer should submit all relevant documents to support the bail application. These may include medical reports, character certificates, and surety bonds.

4: Provide Surety Bonds: In some cases, the court may require the defendant to provide surety bonds to secure their release on bail. The surety bonds can be in the form of cash or property.

5: Await the Court Decision: After hearing both sides, the court will make a decision regarding the bail application. If the bail application is granted, the defendant must provide the required surety bonds and will be released from custody. If the bail application is rejected, the defendant will remain in custody until their trial.

It is important to note that the process of obtaining bail can take some time, and the decision ultimately rests with the court. It is advisable to seek the assistance of a qualified lawyer to navigate the bail process in Pakistan.

FYI

Private sector companies are businesses that are owned and operated by individuals or groups, rather than the government. These companies are typically formed for profit-making purposes and can range from small family-owned businesses to large multinational corporations.

There are several types of private sector companies, including:

1: Sole proprietorship: A business owned and operated by one individual who is responsible for all profits and losses.

2: Partnership: A business owned and operated by two or more individuals who share the profits and losses.

3: Limited Liability Company (LLC): A legal entity separate from its owners that offers limited liability protection to its shareholders.

4: Private Limited Company: A type of company that restricts the transfer of shares and limits the number of shareholders to 50.

5: Public Limited Company: A company that can offer its shares to the public and has no restrictions on the transfer of shares.

6:Joint Venture: A business agreement between two or more parties who agree to share resources and risks to achieve a specific goal.

7: Franchise: A business model in which a franchisor grants a franchisee the right to use its brand name, products, and services in exchange for a fee.

In Pakistan, the process of registering a private sector company involves the following steps:

1: Choose a name for the company and check its availability with the Securities and Exchange Commission of Pakistan (SECP).

2: Draft the company’s Memorandum and Articles of Association (MAA) which outline the company's purpose, structure, and rules.

3: Obtain digital signatures and file the registration application online with the SECP.

4: Obtain a National Tax Number (NTN) and register for Sales Tax with the Federal Board of Revenue (FBR).

5: Open a bank account for the company.

6: Register with the Employees’ Old-Age Benefits Institution (EOBI) and the Social Security Institution (SSI) if required.

7: Finally, obtain any necessary licenses and permits required for the specific industry in which the company operates

Intellectual Property Rights (IPR) in Pakistan refers to the legal protection of creations of the mind, such as inventions, literary and artistic works, and symbols, names, and images used in commerce. The following are some key points to understand IPR in Pakistan:

1: Patents: A patent gives the inventor the exclusive right to make, use, and sell an invention for a certain period of time. In Pakistan, patent protection lasts 20 years from the filing date. The invention must be novel, non-obvious, and have industrial applicability.

2: Trademarks: A trademark is a symbol, word, or phrase used to identify and distinguish goods or services from others in the marketplace. Trademark protection in Pakistan lasts 10 years from the filing date and can be renewed indefinitely.

3: Copyrights: Copyright protection in Pakistan extends to literary, artistic, musical, and dramatic works. Copyright protection lasts for the lifetime of the creator plus 50 years after their death.

4: Industrial Designs: An industrial design is the visual features of shape, configuration, pattern, or ornament applied to an article. In Pakistan, an industrial design is protected for 15 years from the filing date.

5: Trade Secrets: Trade secrets refer to confidential business information that is not generally known to the public. In Pakistan, trade secrets are protected by contract law and common law.

It is important for businesses and individuals in Pakistan to understand and protect their intellectual property rights to prevent infringement and ensure their creations are not misused.

A Power of Attorney (POA) is a legal document that grants authority to an individual, known as the "agent" or "attorney-in-fact," to act on behalf of another person, known as the "principal," in matters specified in the document.

There are different types of Power of Attorney, including:

1: General Power of Attorney: This grants broad authority to the agent to act on behalf of the principal in all matters, including financial and legal affairs. It can be useful in situations where the principal is unable to manage their affairs due to illness, disability, or absence.

2: Limited Power of Attorney: This grants authority to the agent to act on behalf of the principal in specific situations and for a limited period of time. For example, a principal may grant an agent a limited power of attorney to sell a property on their behalf while travelling.

3: Durable Power of Attorney: This remains in effect even if the principal becomes incapacitated or unable to make decisions. It is often used to ensure that the agent can continue to act on behalf of the principal even if they can no longer do so themselves.

4: Springing Power of Attorney: This only becomes effective under certain circumstances specified in the document, such as the incapacity of the principal. This type of power of attorney is often used to provide for contingencies that may arise in the future.

Attention all professionals,

We are excited to announce the latest addition to our legal services firm, offering top-notch legal advice and guidance to individuals and businesses alike. Our team of experienced lawyers brings a wealth of knowledge and expertise in a variety of practice areas, including corporate law, intellectual property, real estate, and more.

At our firm, we understand that legal matters can be complex and overwhelming. That's why we prioritize clear and concise communication with our clients to ensure that they fully understand their options and can make informed decisions. We are dedicated to providing personalized service to each of our clients, and we work tirelessly to achieve the best possible outcomes for them.

In addition to our legal services, we are committed to staying up-to-date with the latest developments in the legal field. We actively participate in legal conferences and seminars, and we are proud members of several legal associations and organizations.

We invite you to explore our page and learn more about our legal services and team. If you have any questions or would like to schedule a consultation, please do not hesitate to contact us. We look forward to the opportunity to serve you.

Sincerely,

Al Rehman Law Firm
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Are you starting a new business? Here are some legal tips to help you get started:

1: Choose the right business structure: The type of business structure you choose will affect your legal and tax obligations.

2: Consider the pros and cons of sole proprietorship, partnership, LLC, and corporation before making a decision.

3: Protect your intellectual property: If you have a unique product or service, consider filing for a patent, trademark, or copyright protection to prevent others from using or copying your idea.

4: Draft solid contracts: Contracts are the backbone of any business deal. Make sure your contracts are well-written, clear, and include all important terms and conditions.

5: Follow employment laws: As an employer, you need to comply with various federal and state laws related to hiring, wages, benefits, and termination. Seek legal advice to ensure you're in compliance.

6: Have a plan for disputes: No business is immune to disputes, whether it's with customers, employees, or partners. Have a plan in place to resolve disputes, such as mediation or arbitration.

Remember, starting a business involves legal risks and challenges. By seeking legal advice and following these tips, you can minimize those risks and set yourself up for success.