Lahore High Court (LHC) adjourned to June 25 the proceedings in a petition filed regarding the sale of three units of Ittefaq Group to adjust the bank loans owed by Sharif family as a verdict on an intra-court appeal against the sale of these units is pending before a divisional bench.
Petitioners National Bank of Pakistan and corporate law authority submitted that the units including Ittefaq Foundries, Ittefaq Textile Mills and Khalid Siraj Industries failed to pay their liabilities, so their amount should be recovered through auction of these units.
The company judge on banks petition had ordered the sale of these units on which the petitioner moved an application for execution of sale. On the other hand the sale of these units was challenged before the division bench of high court.
Mian Meraj Din, an uncle of former prime minister Mian Nawaz Sharif, moved this appeal to stop the auction of Ittefaq Foundries and other steel units under the companies ordinance stating that the auction was being undertaken contrary to the Section 284 of the Companies Ordinance so it was "illegal".
Appellants contended that the government had neither called a general meeting of all shareholders, nor their approval was sought before initiating the auction process. Mian Nawaz Sharif had handed over the four units, including Ittefaq Foundries, Ittefaq Brothers and Brother Steel Mills, to the eight scheduled banks to clear their loans.
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