RAWALPINDI: To settle a long-running debt recovery case from ailing industrial facilities, Justice Jawad Hassan of the Lahore High Court, Rawalpindi Bench, gave priority to a methodical approach.
The case involving Khawaja Flat Glass Industries (Pvt) Ltd and two significant banks, Askari Bank Ltd and First Women Bank Ltd, was being heard by Justice Hassan.
In keeping with recent court rulings intended to protect stakeholders and preserve firms, the court has placed more focus on the company’s restructuring and rebirth than on liquidation.
The case concerns several execution petitions that the banks filed in an attempt to recoup unpaid debts. The court emphasized in its most recent ruling the necessity of a “legal heuristic approach” based on the ideas of fairness, legal clarity, and purposefulness.
Justice Hassan cited a number of significant Supreme Court decisions that supported company resurrection over winding up, including decisions made by Justice Ayesha A. Malik and Chief Justice of Pakistan Yahya Afridi.
The “Five R’s”—Recovery, Restructure, Renewal, Resurrection, and Resolution—are a set of recovery tactics that were described in the ruling. The corporation and the banks have been ordered by the court to meet on January 10, 2025, in order to finalize a restructuring plan that all parties can agree upon.
