Staff Reporter
KARACHI: The Sindh High Court has cleared the way for criminal defamation charges to proceed against the leadership of The Resource Group (TRG) Pakistan, ordering TRG Chairman Mohammed Khaishgi and CEO Hasnain Aslam to appear in the court.
The court’s ruling follows a previous order by a District and Sessions Court in Karachi from February 2023, which allowed criminal defamation charges against the management and board of TRG International to proceed. The case was initiated by former TRG Pakistan CEO Zia Chishti, who disputes statements made about him in a letter from TRG International, which he claims were defamatory.
The defendants in the case include Khaishgi, Aslam, CFO Hassan Farooq, General Counsel Pat Costello, and various current and former board members, including Zafar Sobani, Patrick McGinnis, Khaldoon Latif, and John Leone.
TRG’s management had obtained a stay order from the Sindh High Court, which temporarily halted the District Court proceedings. However, after a lengthy delay, the High Court has now vacated the stay, allowing the lower court to proceed. A hearing in the District Court is scheduled for November 16, where the defendants are expected to appear.
In response to this development, some defendants have sought a further stay from the Supreme Court. Legal analysts suggest such a stay may not be likely, given the Sindh High Court’s recent statement that legal grievances should be addressed first in the trial court.
These criminal defamation proceedings are part of a broader legal dispute between Chishti and TRG’s current leadership, which also includes arbitration cases in the United States. In one US-based arbitration initiated by TRG in January 2023, the company alleges Chishti was restricted from selling or leveraging his shares in TRG. Consequently, Chishti’s shares are currently frozen under a stay order in Pakistan pending the outcome of this arbitration.
Conversely, Chishti has filed a separate arbitration case in the US, alleging various violations by TRG, Aslam, Khaishgi, and other TRG affiliates. A federal court in the United States recently ruled to allow Chishti’s arbitration to proceed after rejecting TRG’s request to halt the case.
The outcome of these legal proceedings may have implications for the future of TRG, particularly with board elections scheduled for January 2025. Chishti has publicly criticized TRG’s current leadership, citing a drop in stock price and recent financial losses.
When asked for comment, Chishti reiterated his concerns regarding TRG’s financial performance and governance. “TRG and its current management have overseen significant financial challenges and a decrease in shareholder value,” he stated. He also referenced operational issues, such as the insolvency of Afiniti, a TRG asset in Bermuda, and delays in TRG Pakistan’s shareholder meetings.
Aslam and Khaishgi declined to comment on the court proceedings.
Following the High Court’s ruling, the District Court is likely to continue proceedings. Observers note that several defendants may be based outside Pakistan, which could affect their ability to attend hearings in person.
