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The Sindh High Court has permitted criminal defamation charges to move forward against the leadership of The Resource Group (TRG) Pakistan, mandating that TRG Chairman Mohammed Khaishgi and CEO Hasnain Aslam appear in court.
This ruling comes after a prior decision by a District and Sessions Court in Karachi in February 2023, which permitted the criminal defamation charges against the management and board of TRG International to begin.
The case was launched by former TRG Pakistan CEO Zia Chishti, who contests the statements made about him in a letter from TRG International, which he asserts were defamatory.
The individuals being accused in this case include Khaishgi, Aslam, CFO Hassan Farooq, General Counsel Pat Costello, and several current and former board members, such as Zafar Sobani, Patrick McGinnis, Khaldoon Latif, and John Leone.
TRG’s management had previously secured a stay order from the Sindh High Court, which temporarily suspended the District Court proceedings. However, after a considerable delay, the High Court has now lifted the stay, enabling the lower court to advance. A hearing in the District Court is set for November 16, where the accused are anticipated to appear.
In light of this situation, some defendants have requested another stay from the Supreme Court. Legal experts believe that such a stay is unlikely, especially considering the Sindh High Court’s recent assertion that legal issues should be resolved initially in the trial court.
These criminal defamation proceedings are part of a wider legal conflict between Chishti and TRG’s current leadership, which also encompasses arbitration cases in the United States. In a US-based arbitration initiated by TRG in January 2023, the company claims Chishti was restricted from selling or capitalizing on his shares in TRG. As a result, Chishti’s shares are currently frozen under a stay order in Pakistan pending the resolution of this arbitration.
On the other hand, Chishti has initiated a distinct arbitration case in the US, accusing TRG, Aslam, Khaishgi, and other TRG affiliates of numerous violations.
When approached for comments, Chishti reiterated his worries regarding TRG’s financial health and governance. “The current management of TRG has presided over considerable financial issues and a reduction in shareholder value,” he stated. He also pointed out operational concerns, including the insolvency of Afiniti, a TRG asset in Bermuda, and delays in shareholder meetings for TRG Pakistan.
Aslam and Khaishgi chose not to comment on the ongoing court proceedings.
