LAHORE, Nov 14: The Securities Exchange Commission of Pakistan strongly opposed the new plan for restructuring and revival of the collapsed Taj Company on Wednesday but a Lahore High Court company judge observed that it was worthy of consideration.

Appearing for the SECP, successor to the Corporate Law Authority, Deputy Attorney-General Khwaja Saeeduz Zafar submitted before Justice Javed S. Khwaja that the companies registrar had already moved for the winding up of the insolvent company to pay off its secured and unsecured creditors.

The high court ordered its liquidation in 1998 but the order was suspended in appeal by the Supreme Court. Should the Supreme Court finally upheld the liquidation order, the entire exercise being undertaken to resuscitate the dormant company would go to waste.

The Investment Corporation of Pakistan informed the judge that it owed the collapsed company Rs40 million but the revival plan had nothing to say about repayment of its outstanding loan.

The plan, submitted by Advocate Tariq Kamal Qazi, envisages revival of the Taj Company with its depositors as its shareholders but Mr Saeeduz Zafar informed the court that earlier efforts to bring the depositors on one platform and make them agree on a plan for disposal of the company’s assets and distribution of the proceeds among them have proved futile.

He said delay in the liquidation of the company would only prolong the agony of the depositors who had their amounts stuck-up since 1988 without receiving any profit on them.

Justice Jawad Khwaja observed that the revival plan depends on the depositors for its implementation. If makers of 75 per cent of the unpaid depositors do not agree on it, the plan will have to be discarded. But if the depositors agree, it is worth giving a try.

Further hearing was adjourned for Nov 20, when the court may fix a date for the depositors’ meeting.