LAHORE, Oct 12: The former ruling Sharif family has opposed in the Lahore High Court the sale of four industrial units of the Ittefaq Group of Industries on the plea that they could fetch a higher price if they were sold in a proper manner.
Advocate Ashtar Ausaf Ali deposed before Justice Sair Ali on Tuesday that the Sharifs had no objection to the sale of the Brothers Steel at Kot Lakhpat, the Ittefaq Brothers at Shahdara and the Ilyas Enterprises on the Bund Road, but the objection was on sale that was neither advertized nor was made through an open auction.
The court gave an indication that it might proceed day to day for expeditious disposal of the request of the National bank of Pakistan, seeking the LHC's approval of the sale of the units. The proceedings were adjourned till Wednesday (today).
A three-member committee, appointed by the LHC, sold on July 7 this year the four Ittefaq units for Rs2.15 billion to the Al-Rehmat Group of Industries of Faisalabad.
The family of late Mian Muhammad Bashir, represented by advocate Hamid Khan, also raised objection to the sale of the industrial units more or less on the approach adopted by the Sharifs. However, it also raised the question of receivables amounting to about Rs1 billion which the Sharifs undertook to pay in case the price fetched by the units was less than the total bank loans.
The family of Mian Merajdin, represented by advocate Syed Mansoor Ali Shah, opposed the bargain on the plea that the sale was illegal because the provisions of the Companies Ordinance invoked for the purpose, provided for rehabilitation and restructuring of the units.
His family, which is the claimant of 50 per cent of the Ittefaq Foundry and other steel division units under an agreement signed among the seven families of the Ittefaq Group of Industries in 1991, is opposing the sale of the units.
Advocate Raja Muhammad Akram, who represented the NBP, pleaded for the approval of the bargain which, he submitted, was the best in the given situation. He stated that the Al-Rehmat Group had paid Rs50 million at the time of the bargain and was prepared to pay another Rs200 million immediately.
The counsel submitted that the Al-Rehmat Group wanted to enter into an agreement with the creditor bank for the payment of entire money within six months. He also opposed the position of the Merajdin's family which, he submitted, had offered price of only Rs850 million for the four units and wanted the payment of that amount in 10 years.
About 50 per cent of the loan was advanced by the NBP while the Habib Bank, the United Bank, the Muslim Commercial Bank, the Bank of Punjab, the Agriculture Development Bank of Pakistan, the ICP and the Punjab Modarba were also creditors. All the loans were obtained by the Sharifs between 1982 and 1988.
The Bank of Punjab also wanted to file its opinion because it said its was interested in the recovery of its part of the loan that was about Rs60 million. The families of Mian Muhammad Shafi, Mian Sirajdin, Mian Farooq Barkat and Mian Muhammad Yousaf are yet to file their position on the sale of the units.
The opinion on behalf of the family of Mian Farooq Barkat was to be submitted on Tuesday, but it could not be done because of the death of the father of its counsel Azmat Saeed.