ISLAMABAD, March 25: The Supreme Court on Wednesday dismissed a petition of Adamjee Insurance Company Limited which had alleged that MCB, owned by Mansha group, was attempting to take over AICL by acquiring its 40 per cent shares through the stock trading.

The Supreme Court bench, headed by Chief Justice Nazim Hussain Siddiqui, heard the case for about two days, before it upheld the Sindh High Court's division bench order, holding that MCB had not violated any law by acquiring shares through the stock trading.

The Supreme Court decision on Wednesday would allow the MCB to participate in the annual general meeting of Adamjee Insurance. Adamjee Insurance Company Limited had alleged that the Mansha group was attempting to take over the insurance company by acquiring its 40 per cent shares through the stock trading.

A single bench of the SHC had passed a prohibitory order and directed MCB not to attempt to take over AICL. The decision was vacated by the SHC division bench.

The SHC order was challenged in the Supreme Court in December 2002, which stayed its operation. The case was taken up a number of times, but was adjourned on different grounds.

The Supreme Court bench comprising Chief Justice Nazim Hussain Siddiqui, Justice Abdul Hameed Dogar and Justice Fakeer Mohammad Khokhar, after hearing the counsels for parties for two days, upheld the SHC's division bench order.

Advocate Khalid Anwar and Advocate Raja Mohammad Akram represented MCB. Syed Sharifuddin Pirzada and Anwar Mansoor represented AICL. The counsels representing MCB contended that its client had not violated the companies law and had the right to take part in the elections of AICL directors.

They said they had been attending AICL meetings and no objection was raised. It all started when they annouced to participate in the elections of AICL directors.

The petitioner company's lawyers argued that if such an act was allowed it would create an uncontrollable acquisition of stocks by banks and investment companies of specialized and profitable units, which in fact, was not the job of the banks.