579/2014 Suit Mr. Asif Mannan & others (Plaintiff) V/S Mr. Suleman Lallani & others (Respondent)
Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Junaid Ghaffar(Author)
Order Date: 16-APR-20
The Plaintiffs being minority shareholders in Defendant No.9 (Company in question) are primarily aggrieved with payment of Rs.430.944 Million to Defendant No.8 as advisory fee and its post facto approval from shareholders, and since admittedly the quantum of Plaintiffs shareholding is less than what is required to maintain a Company petition under the then Companies Ordinance 1984, and even under the Companies Act, 2017, instant Suit has been filed under the Ordinary Civil jurisdiction of this Court by relying upon the exception to the rule settled in the case of [Foss v Harbottle (1843) 67 ER 189]. Their case is that the alleged transaction has caused a tremendous loss to the Company in question and as a consequence thereof, the shareholders have lost substantial amount of their money, and therefore, the present Suit in the form of a derivative action is competent. However, Plaintiffs have not been able to convince this Court that their case as set-up for the purposes of interim relief, (at least), would fall within the exception to rule laid down in Foss v Harbottle; rather, on facts it is covered by the said judgment; hence, the applications filed on behalf of the Plaintiffs at Serial No. 1, 3 & 4 (CMA Nos.4651/2014, 588/2015 and 13510/2015) are hereby dismissed.Full judgment text for this case is not yet available on Pakistan Law Reports. Check the official Sindh High Court case law portal for the complete order.
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