A. QUTUBUDDIN KHAN vs CHEC MILLWALA DREDGING CO — 2025 CLD 972 KARACHI-HIGH-COURT-SINDH

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

A. QUTUBUDDIN KHAN VS CHEC MILLWALA DREDGING CO. (PVT.) LTD. Ss. 398, 399 & 400---Companies Ordinance (XLVII of 1984), Ss.413, 414 & 415---Civil Procedure Code (V of 1908), Ss. 47(3), 151 & O. XXI, R. 50(1)(b)---Execution proceedings---Recovery of decretal amount---Impleading former directors of judgment debtor company---Decree holder sought impleading former directors of judgment debtor / company in execution proceedings on the plea that they were liable for making payment of decretal amount along with interest up to date---Validity---Former directors knew second arbitral award had been announced against them and decree holder's claim for damages against them had crystallized into a liability accrued against judgment debtor / company---Matter was pending before Supreme Court when ex directors decided to dissolve the company under Companies Easy Exit Scheme---Ex-directors and ex-shareholders could not benefit from their wrongdoings and they must be accountable as per undertaking, indemnity and provisions of law---Even if ex-directors/ex-shareholders were affected Court notice under O. XXI, R. 50, C.P.C. which provision ordinarily related to suits against firms and persons carrying on business in names other than their own, such, as partner(s) of a firm, nevertheless, two judgment debtors had stepped forwarded and defended and/or had been defending execution proceedings unconditionally and without claiming any prejudice since 2019 till then---Ex-directors could not approbate and reprobate now in oral arguments---Such liability was not limited to the two ex-directors/ex-shareholders, who were before High Court---Decree holder was at liberty to include remaining ex-directors/ex-shareholders in execution proceedings given the undertaking, indemnity and provisions of law which applied to all of the ex-directors, ex-shareholders, and ex-officers of judgment debtor company dissolved under Companies Easy Exit Scheme, read with S. 439 of Companies Ordinance, 1984---Application was allowed, in circumstances.

A. QUTUBUDDIN KHAN vs CHEC MILLWALA DREDGING CO — 2025 CLD 972 KARACHI-HIGH-COURT-SINDH

Case information

Judgment text as reported

Other judgments reported in 2025 CLD