Mining lease: SHC grants status quo in favour of Popular Cement Industries

KARACHI: A division bench of Sindh High Court, Karachi, comprising Justice Salahuddin Panhwar and Justice Arshad Hussain Khan, on 07-07-2022 granted status quo in favour of M/s. Popular Cement Industries (Pvt.) Limited of Popular Group of Companies, in respect of its Mining Lease comprising 41 acres out of 924 acres against M/s. Ghani and Tayab (Pvt.) Limited i.e., Gatron Group of Companies in a High Court Appeal wherein the order of a learned Single Judge i.e., Justice Zulfiqar Ahmed Khan dated 27.06.2022 was assailed.

Dr. Farogh Naseem, the counsel for Popular Group, submitted that the Mining Lease was acquired by its predecessor i.e. Dadabhoy Cement in 1986, which has been extended from time to time, as per the applicable rules, and which subsists even today; while Popular Group had purchased the Mining Lease upon payment of very hefty consideration, through Court supervision in Execution Proceedings before the High Court, instituted by National Bank of Pakistan.

Earlier, Popular Group, through its previous counsel, had filed a suit against Gatron Group alleging that Gatron Group was encroaching Popular Group’s Mining Lease. However, the learned Single Judge did not grant an injunctive order. Immediately on the next day, Gatron Group filed a new suit against Popular Group, upon the strength of a registered Conveyance Deed of 2004, and obtained an ex-parte ad interim injunctive order, restraining Popular Group from interfering with construction of the boundary wall being raised by Gatron Group around the disputed property and from interfering with the Gatron Group’s activities on the disputed plot.

Copyright Business Recorder, 2022