| Case ID |
d64c3083-2e1b-411d-aafe-53ed5e017e6d |
| Body |
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| Case Number |
Suit No.273 of 2000 |
| Decision Date |
Aug 22, 2002 |
| Hearing Date |
|
| Decision |
The court ruled on the maintainability of the suit filed by Engro Chemical Pakistan Limited against Muhammad Hussain Dawood and others regarding the acquisition of shares, determining that the plaintiff had the right to challenge the hostile takeover attempt. The court highlighted that the plaintiff's claim was not merely about enforcing penal laws but also about addressing civil liabilities arising from the defendants' actions. The court found that there were no adequate remedies available under the Companies Ordinance and other statutes for the civil grievances raised by the plaintiff, emphasizing the role of the civil court in adjudicating such matters. |
| Summary |
The case revolves around a suit filed by Engro Chemical Pakistan Limited against Muhammad Hussain Dawood and several other defendants concerning the unlawful acquisition of shares aimed at a hostile takeover. The plaintiff contended that the defendants had accumulated its shares in violation of various laws, including the Companies Ordinance and the Foreign Exchange Regulation Act, which could significantly affect its management and operations. The Sindh High Court examined the legal grounds for the suit, particularly focusing on the jurisdiction of civil courts over matters involving corporate governance and share acquisitions, ultimately affirming the maintainability of the suit despite arguments by the defendants that remedies should be sought through specialized regulatory authorities. The ruling underscored the civil court's role in addressing potential violations of corporate law and the protection of shareholder interests, establishing a precedent for future cases involving hostile takeovers and corporate governance disputes in Pakistan. Keywords such as 'hostile takeover', 'share acquisition', 'corporate governance', and 'legal remedies' are pivotal for understanding the implications of this case. |
| Court |
Sindh High Court
|
| Entities Involved |
ENGRO CHEMICAL PAKISTAN LIMITED,
MUHAMMAD HUSSAIN DAWOOD
|
| Judges |
MUSHIR ALAM, J
|
| Lawyers |
Makhdoom Ali Khan,
Abdul Hafeez Pirzada,
Mr. Mujtaba,
Qazi Faez Essa,
Arshad Tayabally,
Zahid F. Ebrahim,
Aijaz Ahmad
|
| Petitioners |
ENGRO CHEMICAL PAKISTAN LIMITED
|
| Respondents |
,
MUHAMMAD HUSSAIN DAWOOD
|
| Citations |
2003 SLD 2876,
2003 CLD 293
|
| Other Citations |
1999 CLC 1795,
1990 CLC 1008,
1988 CLC 1186,
1988 CLC 123,
1979 CLD 857,
PLD 1949 Lah. 301,
PLD 1978 Kar. 612,
1982 PLC 592,
AIR 1963 SC 1547,
AIR 1965 SC 338,
AIR 1956 Bom. 649,
PLD 1960 SC 113,
PLD 1964 SC 673,
PLD 1985 Kar. 481,
PLD 1969 Kar. 474,
1999 CLC 795,
2001 CLC 2019,
PLD 1968 SC 381,
PLD 1997 SC 3,
1999 CLC 1989,
AIR 1947 Mad. 322,
AIR 1967 All. 118
|
| Laws Involved |
Specific Relief Act (I of 1877),
Civil Procedure Code (V of 1908),
Companies Ordinance (XLVII of 1984),
Securities and Exchange Commission of Pakistan Act (XLII of 1997),
Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance (V of 1970),
Central Depositories Act (XIX of 1997),
Foreign Exchange Regulation Act (VII of 1947)
|
| Sections |
42,
54,
55,
9,
263,
17,
20,
20,
27,
23
|