20000119

LHC issues notice to Sharif family

Recorder Report

Lahore: Mr. Justice Malik Muhammad Qayyum of the Lahore High Court (LHC) issued notice for January 20 to Sharif family members in a petition filed by Mian Ilyas Meraj, cousin of deposed prime minister Nawaz Sharif, praying for attachment of assets and property of the Ittefaq Foundries.

The petitioner, through his counsel Syed Mansoor Ali Shah, prayed to the court to restrain the respondents from transfer and sale of assets and property of the titled company.

He further prayed to the court to restrain the respondents from changing the pattern of shareholders of the company and not to create further encumbrances in the assets of the company till the final disposal of the petition.

His counsel contended before the court that the Sharif family has been in continuous possession of the titled company to the exclusion of the applicants and other families. All the profits, losses and liabilities of the said company were to be solely attributed to the Sharif family.

He said that the mismanagement, fraudulent and secretive siphoning out of funds from the company by the respondent family and utilisation of bank advances has materially contributed to the establishment of companies comprising Hudabiya Paper Mills, Hudabiya Engineering Mills, Chaudhry Sugar Mills, Hamza Board Mills and Mehra Ramzan Textile Mills.

These units are the real beneficiaries of the loans/advances granted by the banks and are, therefore, also accountable for their adjustment.

He contended that the years of mismanagement and fraudulent trading has deeply damaged the financial foundation of the Ittefaq Foundries resulting in the closure of the mills leaving behind a huge liability.

He said that the petitioner family has not been given a single penny and under the family division judgement an old textile unit had been given to the applicants, which was being managed by one company run and controlled by another family.

He, therefore, prayed to the court to direct the Securities Exchange Commission of Pakistan to investigate the flight of capital from the title company to the companies of Sharif Group.

The court after hearing the petitioner's counsel at length issued notices to the respondent Sharif family members.