RAWALPINDI: Justice Jawad Hassan of the Lahore High Court, Rawalpindi Bench, prioritised a structured approach to resolve a longstanding debt recovery case from sick industrial units.

Justice Hassan was hearing the case involving Khawaja Flat Glass Industries (Pvt) Ltd and two major banks, Askari Bank Ltd and First Women Bank Ltd.

The court has emphasised restructuring and revival of the company over liquidation, in line with recent judicial precedents aimed at preserving businesses and protecting stakeholders.

The case pertains to multiple execution petitions filed by the banks for recovering outstanding liabilities. In its latest order, the court highlighted the need for a “legal heuristic approach” grounded in the principles of purposiveness, justice, and legal certainty.

Justice Hassan referenced several landmark Supreme Court rulings advocating for business revival over winding up, including cases led by Chief Justice of Pakistan Yahya Afridi and Justice Ayesha A. Malik.

The judgment outlined a framework of recovery strategies labelled as the “Five R’s” — Recovery, Restructure, Renewal, Resurrection, and Resolution. The court has directed the banks and the company to convene a meeting on January 10, 2025, to finalise a mutually agreeable restructuring plan.

Published in Dawn, December 20th, 2024