LAHORE:
The Lahore High Court on Friday allowed a committee to sell Ittefaq Group of Industries in order to recover nearly Rs3 billion loans the group owes to various banks.
Chief Justice Umar Ata Bandial issued this order while dismissing an application filed by the Miraj Family. Justice Bandial also vacated an earlier stay order granted by the Lahore High Court against the sale of these units.
Mian Meraj Din, a shareholder in Ittefaq Group and Nawaz Sharif’s uncle, had challenged the sale of three units on grounds that the auction violated Section 284 of the Companies Ordinance. He said he was the owner of three units – Ittefaq Foundries, Ittefaq Brothers and Brothers Steel Mills – which could not be sold.
The court, however, ruled that the units had been mortgaged at the time of securing the loan and could be sold to recover the amount owed.
National Bank of Pakistan, Habib Bank Ltd, United Bank Ltd, Zarai Tararqiati Bank of Pakistan, Muslim Commercial Bank, PICIC Bank, First Punjab Modarba and Corporate Law Authority had filed the petition in 1998.
The petitioners had prayed for recovery of the loan through auction of Ittefaq Foundries, Ittefaq Textile Mills, Khalid Siraj Industries and other units because they had failed to fulfill commitments made against the loan.
A company judge of the high court had ordered sale of the industrial units and a sale committee was constituted.
Former prime minister Nawaz Sharif had handed over four units, including Ittefaq Foundries, Ittefaq Brothers and Brother Steel Mills, to the banks to clear their loans. The banks had objected and demanded a cash settlement instead.
Govt officials, defendant’s doctor summoned on Oct 1
The Lahore High Court on Friday was displeased with both the FIA and the defendant in the Future Concerns case. Summons were issued to government officials for changing the investigation officer of the case as well as the doctor who had issued a medical certificate for the defendant.
Several petitioners have moved court against Asim Malik, the chief executive of a visa consultancy firm, for fraud.
They say Malik took money and promised to get them visas but did not.
Justice Mazahar Ali Akbar Naqvi was informed that the investigation of the case had not been completed yet because the case had been handed over to a new investigation officer.
The judge expressed his displeasure, saying that apparently favourites were being appointed to influence the investigation. Impartial investigators are being removed from the job, remarked Justice Naqvi.
He then stopped the newly-appointed investigation officer from conducting investigation and summoned the Federal Investigation Agency director general, the home secretary and the SSP (Operations).
When Malik’s counsel presented a medical certificate seeking exemption from court appearance, the judge doubted the genuineness of the certificate. Justice Naqvi ordered that the doctor who had issued the certificate also be summoned for the next hearing.
The judge adjourned the hearing till October 1.
A contempt notice has already been issued against Malik for not appearing before the court despite being summoned on several occasions. Malik’s name has been included in the exit control list (ECL).
(Read: Selective accountability)
Published in The Express Tribune, September 29th, 2012.
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They still have better chances at Constitution Avenuw, Islamabad.