Introduction:

Introducing, Shee-shah Inn an astounding hangout place for those who want to
spend some time in serenity, distant from the commotion of the daily routine life. Shee-
shah Inn is a Huqqa bar, generally for the youth, a perfect hangout place, where they can
just take their time off from their tense educational life. It is located in the suburb of
North Nazimabad- Block-L near Imam Clinic. It is situated along a food street,
strategically a perfect place to attract young customers. Shee-shah Inn is a partnership
business containing three partners Ammar Imtiaz, Ahsan Ahmed and Faisal Pervez.

The Idea:
The idea of this business was put forward by us the students of Iqra University namely;
Ammar Imtiaz, Ahsan Ahmed and Faisal Pervez (partners). We felt the need of a place
where youngsters like us could just leave their apprehension behind them and consort
with our friends plus enjoy some quality Sheesha.

In Karachi, the foremost importance has been given to the recreational facility for the
families and kids that is amusement parks, play lands for the kids or even malls, there has
been a great decline in the entertainment capacity for the youth specially boys belonging
to the age group of 18-25 Resulting in further leap in stress levels, crime rate and
addiction towards drugs among young boys. Since, belonging to same age group we have
recognized the need of good quality entertainment and we feel that Shee-shah Inn is the
apposite place to be in.

What Is Shee-shah Inn?

Shee-shah Inn is a mixture of Huqqa bar plus gaming arena, pool club and a restaurant.
We have divided Shee-shah Inn in four categories according to consumer preference.

Pub
Gaming Arena
Pool Club
Restaurant

Huqqa bar: Our specialty; A well furnished room with a dull tone and dim lights,
designed specifically for smoking Sheesha, cigars and cigarettes, the room can entertain
up to 15 persons at a time. Room also contains a flat screen plasma monitor which will
serve as an initiator and will add further value to our product.

Gaming Arena: For all those, who want to try out their gaming talent this is the place
to be. The room contains 30 computers with latest gadgets and computers, room is fully
air-conditioned. However, it is a non-smoking place.
Pool Club: It is one of the very important traits Shee-shah Inn. Pool is one of the very
growing trends among the young guns of our city, more and more number of teenagers is
becoming interested in this sport so, and a special emphasis has been put on the pool
club. The room is very well furnished with wooden floor, fully air-conditioned and has 5
tables. But what makes it a real deal is that the room is totally sound proof.

Restaurant: It is another very important aspect of Shee-shah Inn. Pakistanis are

traditionally fond of eating regardless of any occasion. The restaurant contains from desi
Pakistani dishes to the western fast foods. An extensive attention is given towards the
hygiene of the food. The restaurant is strategically situated at the entrance of Shee-shah
Inn, to favor impulse buying. The room can accommodate up to 30 persons at a time. It is
an exceptionally well-furnished room and with music being played in the background, it
further adds value to the Shee-shah Inn.

About the owners of Shee-shah Inn:

The Shee-shah Inn is a partnership business owned by Ammar Imtiaz, Ahsan Ahmed and
Faisal Pervez. The three are the students of Iqra University -8th semester (defence
campus). Initial idea was put forward by Faisal Pervez. After intense thinking sessions
the partners agreed to invest their money in a business which can provide maximum
growth opportunities in Karachi. Hence, Shee-shah Inn was a unanimous choie amongst
the three partners.

Partners are provided with opportunities to network and develop key business
relationships with fellow professionals and explore opportunities for business
collaboration whilst finding out about current business issues through a range of
informative breakfast meetings and mutual collaboration.
Structure of Partnership:

Ammar Imtiaz
50%

Faisal Pervez Ahsan Ahmed

25% 25%

Mission Statement:
“With a mission to surpass customer expectations, Shee-shah
Inn offers the best activity and hangout provision to the youth
to enjoy themselves and take a break from their usual hustle
bustle of life which give experiences equal or superior to those
that are most popular in the market today. Shee-shah Inn
wants to remain one of the leader and innovator in the city and
intends to do this with promotional efforts and to gain loyalty
from customers. Our strength is customer satisfaction,
maintenance of our brand’s image and our commitment is to
continually care for the needs of our consumers, customers,
employees, suppliers, stakeholders and the community itself.”
 Vision Statement:
“To be the first choice of our costumers and provide them with
quality entertainment”

Our Values:
• In the worth of our customers.

• Our word is our bond.

• In maintaining quality and to attain customer satisfaction through our

individuality and collective integrity.

• That we recognize the right to be different and differ but shall not allow it to be
divisive.

Our Goals:
• To provide our customers supreme quality in our every product and to attain
maximum customer satisfaction through adequate implementation of our values.

• To achieve utmost recognition in response to our competitors and to establish a

healthy brand image.

• To establish a 15% market share in Karachi and gradually increase in subsequent

years.

• To establish Shee-shah Inn to be recognized among the leading Sh eesha Bars in

Karachi.

• To maintain differential advantage and competitive price without compromising

on quality and to promote the brand; keeping in mind the exclusive image of the
brand.
About the partnership:

Partnership:
A partnership is a voluntary association of to or more persons, who contribute, money,
property, time, care or skill, to carry on, as co-owners, a lawful business for profit and to
share the profits and losses of the business

An unincorporated business owned by two or more persons voluntarily acting as partners

(co-owners) is called a partnership. Partnerships like sole proprietorships are widely esed
for small businesses.

It is a written contract or agreement between two or more person to share the profits and
losses of a business carried on by all of them or one of them for all. This definition of the
partnership is contained or given in section 4 of the partnership Act 1932.

It is the activity of involvement of two or more persons with good faith and believe and
having mutual understanding between each other. Who contribute money, property, time,
skills; care to carry on, as co – owners a lawful business for profit and to share profit and
losses of the business.

Partners: personnel who enter into agreements of partnership are called partners and
collectively a firm.

Characteristics and Essentials:-

From the definition of partnership as given above following are the essential elements.

• Atleast two persons must joint together to form a partnership.

• There must be an agreement between persons desirous of forming a partnership.

• The agreement must be to share profit/loss of a business.

• The business of partnership may be carried on by all the partners or by any of

them acting for all. Thus every partner is an agent of other partners and at the
same time of the firm.

• Partnership is made to carry on some business. The businesses must be in

existence to constitute valid partners.

• Such business, the business must be carried by all or any one of them for all.
• The liability of the partners is unlimited in case of firm’s debts. All the partners
are individually and collectively responsible for firm’s debts.
 • Partnership is not a separate legal entity. Each partner is not separated to one
another, it means the rights and liabilities of whole firm is considered as each
partner rights and liabilities.

• In partnership all the capital is induce by each partner. It is not necessary; it can
be done by the person’s ability, knowledge, skills and experiences.

• It can be dissolve or continue at the will of all members consent.

• All the major decision regarding to the business activities are taken with the
consent of all the members. Any person can lead and control all the major
decisions. It will define and agree in partnership agreement between all of them.

• The partners cannot transfer his share in the partnership to the outsiders without
the consent by all of them. It is not easily transferable.

Types of partnerships:

With respect to liabilities there are three types of partnerships:

 General Partnerships
 Limited Partnerships
 Limited Liability Partnerships (LLP)

General Partnerships

A general partnership involves two or more owners carrying out a business purpose.
General partners share equal rights and responsibilities in connection with management
of the business, and any individual partner can bind the entire group to a legal obligation.
Each individual partner assumes full responsibility for all of the business's debts and
obligations. Although such personal liability is daunting, it comes with a tax advantage:
partnership profits are not taxed to the business, but pass through to the partners, who
include the gains on their individual tax returns at a lower rate.

Limited Partnerships

A limited partnership allows each partner to restrict his or her personal liability to the
amount of his or her business investment. Not every partner can benefit from this
limitation -- at least one participant must accept general partnership status, exposing
himself or herself to full personal liability for the business's debts and obligations. The
general partner retains the right to control the business, while the limited partner(s) do(es)
not participate in management decisions. Both general and limited partners benefit from
business profits. However, this type of partnership does not exist in Pakistan.

Limited Liability Partnerships (LLP)

In Limited Liability Partnership (LLP) all the partners called the members can benefit
from the limited liability but subject to adhering to strict rules on accounting and public
disclosure similar to those applying to a limited company.

With respect to duration there are two types of partnerships:

♦ Partnership at will – A partnership with no fixed duration.

 When, a partnership is formed for unlimited period.

 When a partnership is formed for limited period and it continues after the expiry
of this period.

 When a partnership firm is formed for a particular project and it continues after
the completion of project.

♦ Particular partnership – A partnership for a fixed duration.

Advantages of partnership:-
• A partnership is relatively easy to establish, but potential partners must spend
time establishing the ground rules of the partnership.

• Partnership profits flow directly to each partner's personal income tax return. The
government does not tax the partnership as a separate entity.

• With more than one owner, the partnership may have an increased ability to raise
funds.

• Potential employees may be attracted to the business if they are given an

opportunity to become a partner.

• The business of the firm is started with a less amount.

• The ownership and the management of the firm remain with the same persons.

• The procedure for dissolution of the firm is very easy it can be dissolve by the
partner any time they like.
 • The partnership is mutual and close understanding between all partners for their
mutual advantage.

• Partnership is also suitable for small businesses.

• The audit of account is not necessary therefore there are more chances for internal
fraud and misrepresentation which cannot be easy trace by the members.

Disadvantages of partnership:-
• Each partner is jointly and individually liable for the actions of the other partners

• A partner must share the profits with the other partners.

• As the number of partners increase, their potential for disagreements may rise
since partnership decisions are made by more than one party.

• Partners may not be able to deduct some employee benefit expenses from their
business income on their personal income tax returns.

• Sometimes the partnership may have a limited life; e.g., partners may withdraw
from a partnership or a partnership might dissolve upon the death of a partner.

• It cannot take advantage of expert management because it has no separate legal

entity firm its members , the strategic business techniques and expert
implementation cannot be done by the members only it require whole distinct
professional authorities and consultants.

• It can be dissolve easily due to death, insolvency and any other contingency.

• It has a drawback, the maximum number of persons can be 20 only and it cannot
exceed more than 20 members therefore it cannot help to expand business
structure and activities further.

Incoming and outgoing partners:-

Incoming Partners:
An incoming partner is a person who is admitted as a partner into an existing firm or
partnership.

Admission of new partner is only possible in the following circumstances.

• Consent of all other partners

 • Clause in previous contract between partners permitting admission of new
partner(S).

A person who is admitted as a partner into an existing firm does not thereby become
liable to the creditors of the firm for anything done before he became a partner.

Outgoing or retired partners:

An outgoing or retired partner leaves the firm in the following circumstances.

• By consent of other partners

• By prior agreement
• Partnership at will

An outgoing partner whether active or dormant is liable for partnership debts and
obligations incurred by the firm before his retirement.

A partner who retires from a firm does not thereby cease to be liable for partnership debts
or obligations incurred before his retirement.

A retiring partner may be discharged from any existing liabilities by an agreement to that
effect between himself and the members of the firm as newly constituted and the
creditors and this agreement may be either express or inferred as a fact from the course of
dealing between the creditors and the firm as newly constituted.

A Partner may retire:

• With a consent of all the other partners in accordance with an express agreement
by the partners.
• Where the partnership is at will by giving notice in writing to all the other
partners of his intention to retire.

Formation of Partnership (legal procedure):

To form a partnership there must be an agreement among the partners. The agreement
may be in writing or oral. The following points must be kept in mind before entering into
an agreement of partnership:

• The partners of a firm should be selected with care.

• The object of the firm should be lawful.
• The rights & duties of partners must be discussed in detail and in writing.
• The partnership should be registered.
The partnership can be created by a partnership deed executed between the partners. The
partnership is registered under the partnership Act 1932, the procedure of registration of
firm is given in section 58 of the partnership Act.

Partnership can be registered by making an application to the registrar of firm. It should

be accompanied by the prescribed fess and copy of the partnership dead.
Application is to be made on prescribed form (Form A). It must contain following
information.

• Firm’s name

• The place of business (where location of the office of business)

• The date on which each partner join the firm

• Name and the full address of the firm

• Duration of the firm (the period for which firm is being formed) or which partners
at will. According to the partnership firm fixed or will.

Partnership Deed:

The partnership agreement in writing is called partnership deed. It is better to have a

written agreement. The partnership deed generally contains the following:

• Name of the firm:

The name of our business shall be “Shee-shah Inn”

• The nature of business carried out by the firm:

The basic nature of our business is Huqqa bar, Gaming arena plus restaurant

• The town and place where business will be carried on:

Shee-shah Inn is located in North Nazimabad; Block-L / B-145. opposite of Imam
Clinic. Zip postal code 74500.

• The names and addresses of partners:

Ammar Imtiaz: B-140 Block-C North Nazimabad Karachi

Ahsan Ahmed: B-130 Block-J North Nazimabad Karachi

Faisal Pervez: C-120 Block-D North Nazimabad Karachi

 • The capital contribution of each partner

Ammar Imtiaz: initial investment of Rs. 50lacs or 5000000Rs. Cash. Which equal
to about 50% of total capital contributed.
Ahsan Ahmed: initial investment of Rs. 25lacs or 2500000Rs. Cash. Which equal
to about 25% of total capital contributed.
Faisal Pervez: initial investment of Rs. 25lacs or 2500000Rs. Cash. Which equal
to about 25% of total capital contributed.

• The division of profits and losses among the partners

Profit-loss ratio will be
Ammar Imtiaz: 1:2 this equals 50% of total profits or losses.
Ahsan Ahmed: 1:3 this equals 25% of total profits or losses.
Faisal Pervez: 1:3 this equals 25% of total profits or losses.

• The duration of the partnership. If any:

• The rate of interest, if any allowed on capital.

• Loans and advances to the firms by the partners and the rate of interest on
them.

• The rate of interest, if any, to be charged on drawings.

• The amount a partner can withdraw per month or per year from the firm.
Each partner can withdraw up to 5000Rs/month and not more than that.

• The amount of salary or commission payable to any partner for his services to
the firm;
The amount of salary would be based on the revenue generated each month, which
will be distributed on the basis of each partner’s capital.

• The manner to dissolve and the division of partnership property among the
partners.

• The rights, duties and liabilities of partners.

• If partnership is terminated, the treatment of goodwill.

• The Provisions regarding the accounting system and the financial year.

• The rules to deal of retirement, death and admission of a partner.

• The method of solving disputes among the partners. Whether any arbitrator is to be
appointed in this case.
• Power of a partner to retire after giving notice.

• The rules to determine amount due to deceased partner. Whether it will be paid in full or in
installments to his legal representatives:

• In the case of breach of duty by one partner, powers of the other partners to expel him from
firm.
• The keeping of books of accounts and preparation of accounts.

• Any other provision to prevent any future misunderstanding and dispute.

REGISTRATION OF FIRMS
Application for Registration:-
Registration of a firm may be effected at any time by sending by post or delivering to the
Registrar of area in which any place of business of the firm is situated or proposed to be
situated, a statement in the prescribed form and accompanied by the prescribed fee,
stating;
• The firm name,

• The place or principal place of business of the firm,

• The names of any other places where the firm carries on business,

• The date when each partner joined the firm,

• The names in full and permanent addresses of the partners, and,

• Duration of the firm.

The statement shall be signed by all the partners, or by their agents specially
authorized in this behalf.

Name of the Firm:-

A firm name shall not contain words expressing or implying the sanction, approval or
patronage of the Crown or of the Quaid-e-Azam or the "Federal" Government or any
Provincial Government, except when the Provincial Government signifies its consent to
the use of such words as part of the firm name by order in writing.
A firm name shall not contain the name of the "United Nations" or its abbreviations
through the use of its initial letters or of any subsidiary body set up by that body unless it
has obtained the previous authorization of the Secretary General of the United Nations in
writing.

A firm name shall not contain the name of the "World Health Organisation" or its
abbreviations through the use of its initial letters unless it has obtained the previous
authorization of the Director-General in writing.

Registration:-
When the Registrar is satisfied that the provisions of section 58 have been duly complied
with, he shall record an entry of the statement in a register called Register of Firms and
shall file the statement.

Noting of closing and opening of branches:-

When a registered firm discontinues business at any place or begins to carry on business
at any place, such place not being its principal place of business, any partner or agent of
the firm may send intimation thereof to the Registrar, who shall make a note of such
intimation in the entry relating to the firm in the Register of Firms, and shall file the
intimation along with the statement relating to the firm filed under section 59.

Noting of change in name and addresses of partners:-

When any partner in a registered firm alters his name or permanent address, an intimation
of the alteration may be sent by any partner or agent of the firm to the Registrar who shall
deal with it in the manner provided in section 61.

Penalty for furnishing false particulars:-

Any person who signs any statement, amending statement, notice or intimation under this
Chapter containing any particular which he knows to be false or does not believe to be
true, or containing particulars which he knows to be incomplete or does not believe to be
complete, shall be punishable with imprisonment which may extend to three months, or
with fine, or with both.

Effect of Non-Registration
The effects of non-registration are as under;

Suit by Partner:-
Partner of an unregistered firm cannot be suit against the firm or any partner of the firm
to enforce any right which arises from the contract. Criminal proceedings can be done
against any of the partners.
Suit by Firm:-
An unregistered firm cannot file a suit against a third party for the enforcement of any
right arises from the contract such as for the recovery of goods, the price of good
supplied. Whereas, criminal proceedings can be done against the wrong doers.

Suit by Firm against Partners:-

The firm cannot sue any partner of the firm for the enforcement of any right arising from
a contract.

Suit by Third Party:-

A third party can file a suit against the firm or its partner to enforce its right, such as suit
against the firm for the recovery of the price of the goods delivered to the firm.

Exceptions: -
The non registration firm cannot affect the following;
• The third party can sue the firm whether it is registered or not.

• The partners can sue for the dissolution of the firm.

• The partners can sue for the accounts of a dissolved firm.

• The dissolved firm can sue to recover damages for breach of contract.

• The partners can refer a dispute to arbitrator.

Advantages of Registration
Advantages to the Firm:-
Following are the advantages to the firm in case of registration;
• The registered firm can sue any partner of the firm.

• The registered firm can file a suit against the third party for the enforcement of
the rights arising from a contract.

• The registered firm attracts large capital resources from the public.

Advantages to the Partners:-

Following are the advantage to the partners when firm is registered;

• The partners can sue in the court to settle their disputes.

• The partners can sue the firm for their claims.

 • Leaving partner is not responsible for the firm’s debt after their retirement from
firm because the registrar’s record shows that they have left the firm.

Rights of Partners
In the absence of an agreement between the partners partnership Act provides the
following act;

Right to Take Part in Business Activities:-

According to the Partnership Act every partner should take part in the firm or business
activities.

Right to be Consulted:-
Every partner has a right to be consulted and heard in all matters affecting the business of
partnership.

Right o Share Profits:-

Every partner is entitled to share in profits equally unless different proportions are
stipulated.

Right of Indemnity:-
A partner is entitled , to be indemnified(unless otherwise agreed) by the firm for all acts
done by him in course of partnership business, provided he acted as a person of ordinary
prudence would have acted in the similar circumstances.

Right to Charge Interest on Capital:-

No partner is entitled to interest on capital subscribed by him unless there is an agreement
express or implied or a trade custom to that effect.

Right to Act in Emergency:-

A partner has power to act in emergency for protecting the firm from loss.

Right to Give Consent:-

Every partner has a right to prevent the introduction of new partner unless he consents to
that.

Right Not to Be Expelled:-

A partner cannot be expelled from a firm by any majority of partners provided the
decision is made in good, faith and there is a provision in the contract.

Right after Retirement to Share in Profits or Interest:-

Every Partner who leaves the firm due to any reason is entitled to claim any share
according to the agreement.
Right to Retire:-
Every partner has a right to retire, if the contract so provides, falling which, with the
consent.

Duties of partners
According to the partnership Act following are the duties of partners.

Duty to Work for Greatest Common Advantage:-

It is the duty of every partner to work for the greatest common advantage.

Duty to be Just and Faithful:-

It is a duty of every partner that he should be just and faithful to the other partners.

Duty to Give Full Information:-

Every partner should give the full information and utmost good faith should prevail
among partners

Duty to Render True Accounts:-

Every partner should show the true picture of accounts. It means that partners must be
ready to explain the accounts of the firm.

Duty to Indemnify for Fraud:-

Every partner is bound to indemnify the firm for loss suffered by the firm because of his
fraud.

Duty to Hold and Use Property for Firm:-

Every partner is bound to hold and use property of partnership exclusively for the firm
(unless otherwise agreed).

Duty to Act within Authority:-

Every partner is bound to act within the scope the actual authority conferred upon him.

Duty not to Assign His Rights:-

No partner can assign his partnership interest to any other person, so as to make him a
partner in the business.

Duty to Account for Private Profit:-

Every partner has to account for his private profits.

Duty to Share Losses:-

Every partner is bound to share losses suffered by the firm.
Liabilities of Partners
The liabilities of partners are of three kinds;

Liability of a Partner for Act of the Firm:-

This means that if the assets of the firm are not enought to meet the claims of the third
party, partners have to satisfy the remaining claims out of their personal property.

Liability of the Firm for the Wrongful Act:-

The firm is liable to the same extent as the partners for any loss or injury caused to third
party for the wrongful act of the partners.

Liability of Retiring Partner:-

Every retiring partner is liable for all such debts and liabilities of the firm which have
been contracted before his retirement.

DISSOLUTION OF A FIRM
The dissolution of partnership between all the partners of a firm is called the
"dissolution of the firm".

Dissolution by Agreement:-
A firm may be dissolved with the consent of all the partners or in accordance with a
contract between the partners.

Compulsory Dissolution:-
A compulsory dissolution takes place in following conditions, such as;
• By the adjudication of all the partners or of all the partners but one as insolvent or

• By the happening of any event which makes it unlawful for the business of the
firm to be carried on or for the partners to carry it on in partnership; Provided that,
where more than one separate adventure or undertaking is carried on by the firm,
the illegality of one or more shall not of itself cause the dissolution of the firm in
respect of its lawful adventures and undertakings.

Dissolution on the Happening of Certain Contingencies:-

A firm may dissolve on the happening of the following events;
 • If constituted for a fixed term, by the expiry of that term;

• If constituted to carry out one or more adventures or undertakings, by the

completion thereof;

• By the death of a partner; and

• By the adjudication of a partner as an insolvent.

Dissolution by Notice of Partnership-at-Will-:-

• Where the partnership is at will, the firm may be dissolved by any partner giving
notice in writing to all the other partners of his intention to dissolve the firm.

• The firm is dissolved as from the date mentioned in the notice as the date of
dissolution or, if no date is so mentioned, as from the date of the communication
of the notice.

Dissolution by the Court:-

At the suit of a partner, the Court may dissolve a firm on any of the following grounds,
namely;
• That a partner has become of unsound mind, in which case the suit may be
brought as well by the next friend of the partner who has become of unsound
mind as by any other partner;

• That a partner, other than the partner suing, has become in any way permanently
incapable of performing his duties as partner;

• That a partner, other than the partner suing, is guilty of conduct which is likely to
affect prejudicially the carrying on of the business, regard being had to the nature
of the business;

• That a partner, other than the partner suing, wilfully, or persistently, commits
breach of agreements relating to the management of the affairs of the firm or the
conduct of its business, or otherwise so conducts himself in matters relating to the
business that it is not reasonably practicable for the other partners to carry on the
business in partnership with him;

• That a partner, other than the partner suing, has in any way transferred the whole
of his interest in the firm to a third party, or has allowed his share to be charged
under the provisions of rule 49 of Order XXI of the First Schedule to the Code of
Civil Procedure, 1908, or has allowed it to be sold in the recovery of arrears of
 land-revenue or of any dues recoverable as arrears of land-revenue due by the
partner;

• That the business of the firm cannot be carried on save at a loss; or

• On any other ground which renders it just and equitable that the firm should be
dissolved.

Wounding UP Business

Right of Partners to Have Business Wound Up After Dissolution:-

On the dissolution of a firm every partner or his representative is entitled, as against all
the other partners or their representatives, to have the property of the firm applied in
payment of the debts and liabilities of the firm, and to have the surplus distributed among
the partners or their representatives according to their rights.

Continuing Authority of Partners for Purposes of Winding Up:-

After the dissolution of a firm the authority of each partner to bind the firm, and the other
mutual rights and obligations of the partners, continue notwithstanding the dissolution, so
far as may be necessary to wind up the affairs of the firm and to complete transactions
begun but unfinished at the time of the dissolution, but not otherwise:

Provided that the firm is in no case bound by the acts of a partner who has been
adjudicated insolvent; but this proviso does not affect the liability of any person who has
after the adjudication represented him or knowingly permitted him to be represented as a
partner of the insolvent.

Mode of Settlement of Accounts Between Partners:-

In settling the accounts of a firm after dissolution, the following rules shall, subject to
agreement by the partners, be observed:-

• Losses, including deficiencies of capital, shall be paid first out of profits, next out of
capital, and, lastly, if necessary, by the partners individually in the proportions in
which they were entitled to share profits.
• The assets of the firm, including any sums contributed by the partners to make up
deficiencies of capital, shall be applied in the following manner and order-
 In paying the debts of the firm to third parties;
 In paying to each partner rateably what is due to him from the firm for advances
as distinguished from capital;
 in paying to each partner rateably what is due to him on account of capital; and
  The residue, if any, shall be divided among the partners in the proportions in
which they were entitled to share profits.

Payment of Firm's Debts and of Separate Debts:-

Where there are joint debts due from the firm, and also separate debts due from any
partner, the property of the firm shall be applied in the first instance in payment of the
debts of the firm, and, if there is any surplus, then the share of each partner shall be
applied in payment of his separate debts or paid to him. The separate property of any
partner shall be applied first in the payment of his separate debts, and the surplus (if any)
in the payment of the debts of the firm.

Personal Profits Earned after Dissolution:-

Subject to contract between the partners the provisions of clause (a) of section 16³ shall
apply to transactions by any surviving partner or by the representatives of a deceased
partner, undertaken after the firm is dissolved on account of the death of a partner and
before its affairs have been completely wound up:

Provided that where any partner or his representative has bought the goodwill of the firm,
nothing in this section shall affect his right to use the firm name.

Return of Premium on Premature Dissolution:-

Where a partner has paid a premium on entering into partnership for a fixed term, and the
firm is dissolved before the expiration of that term otherwise than by the death of a
partner, he shall be entitled to repayment of the premium or of such part thereof as may
be reasonable, regard being had to the terms upon which he became a partner and to the
length of time during which he was a partner, unless ;

• The dissolution is mainly due to his own misconduct, or

• The dissolution is in pursuance of an agreement containing no provision for the
return of the premium or any part of it.

Sale of goodwill after dissolution:-

• In settling the accounts of a firm after dissolution, the goodwill shall, subject to
contract between the partners, be included in the assets, and it may be sold either
separately or along with other property of the firm.
• Rights of buyer and seller of goodwill - Where the goodwill of a firm is sold after
dissolution, a partner may carry on a business competing with that of the buyer and he
may advertise such business, but, subject to agreement between him and the buyer he
may not;
  Use the firm name,
 Represent himself as carrying on the business of the firm or
 Solicit the custom of persons who were dealing with the firm before its
dissolution.

Prospectus

Shee-shah Inn
Introduction:
Shee-shah Inn an astounding hangout place for those who want
to spend some time in serenity, distant from the commotion of the daily routine life.
Shee-shah Inn is a Huqqa bar, generally for the youth, a perfect hangout place, where
they can just take their time off from their tense educational life.

The idea of this business was put forward by us the students of Iqra University namely;
Ammar Imtiaz, Ahsan Ahmed and Faisal Pervez (partners). We felt the need of a place
where youngsters like us could just leave their apprehension behind them and consort
with our friends plus enjoy some quality Sheesha.

Shee-shah Inn is a mixture of Huqqa bar plus gaming arena, pool club and a restaurant.
We have divided Shee-shah Inn in four categories according to consumer preference.

Huqqa bar: Our specialty; A well furnished room with a dull tone
and dim lights, designed specifically for smoking Sheesha, cigars and
cigarettes, the room can entertain up to 15 persons at a time.

Gaming Arena: For all those, who want to try out their gaming
talent this is the place to be. The room contains 30 computers with
latest gadgets and computers, room is fully air-conditioned. However,
it is a non-smoking place.

Pool Club: It is one of the very important traits Shee-shah Inn.

Pool is one of the very growing trends among the young guns of our
city, more and more number of teenagers is becoming interested in this sport so, and a
special emphasis has been put on the pool club.

Restaurant: It is another very important aspect of Shee-shah Inn.

Pakistanis are traditionally fond of eating regardless of any occasion.
The restaurant contains from desi Pakistani dishes to the western fast
foods. An extensive attention is given towards the hygiene of the
food.

Conclusion:

We have opened Shee-shah Inn keeping in minds the perceptions and mindset of our
target market. We wish to capture a 15% market share within the first year of operations.
Our commitment and values will be our wild card in breaking into this immensely
important and diversified new business.

The facilities, we are providing will further boost our business If conditions permit our
predicted customer turnover, thus, our forecast will be successfully achieved. And with
our vigilant efforts, one day we will be able to successfully take command over our rivals
and open expand our partnership.

References:

Bibliography:
o http://www.ask.com/bar?
q=How+to+Dissolve+a+Partnership&page=1&qsrc=6&ab=3&u=http%3A%2F
%2Fwickedhowtos.com%2Findex.php%2F2007%2F11%2F28%2Fhow-to-
dissolve-a-general-partnership%2F

o http://www.scribd.com/doc/2441358/Partnership-Act

o http://www.articlesbase.com/business-articles/partnership-and-its-characteristics-
266902.html

o http://books.google.com.pk/books?
id=nS8l2TEuZ30C&pg=PA105&lpg=PA105&dq=essentials+and+characteristics
+of+partnership&source=bl&ots=9QUkla8SYd&sig=Piz5kLdvEfEyjeq6mLFXgb
LrBxE&hl=en&ei=ubrDScyPM4-
VkAXG9oXODA&sa=X&oi=book_result&resnum=4&ct=result#PPA113,M1
o http://www.residual-rewards.com/business-partnerships.html

o http://www.justia.com/business-formation/docs/partnership-advantages-
disadvantages.html