The Sindh High Court has cleared the way for criminal defamation charges to proceed against the leadership of The Resource Group (TRG) Pakistan, ordering TRG Chairman Mohammed Khaishgi and CEO Hasnain Aslam to appear in the court.
The court’s ruling follows a previous order by a District and Sessions Court in Karachi from February 2023, which allowed criminal defamation charges against the management and board of TRG International to proceed. The case was initiated by former TRG Pakistan CEO Zia Chishti, who disputes statements made about him in a letter from TRG International, which he claims were defamatory.
The defendants in the case include Khaishgi, Aslam, CFO Hassan Farooq, General Counsel Pat Costello, and various current and former board members, including Zafar Sobani, Patrick McGinnis, Khaldoon Latif, and John Leone.
TRG’s management had obtained a stay order from the Sindh High Court, which temporarily halted the District Court proceedings. However, after a lengthy delay, the High Court has now vacated the stay, allowing the lower court to proceed. A hearing in the District Court is scheduled for November 16, where the defendants are expected to appear.In response to this development, some defendants have sought a further stay from the Supreme Court. Legal analysts suggest such a stay may not be likely, given the Sindh High Court’s recent statement that legal grievances should be addressed first in the trial court.
These criminal defamation proceedings are part of a broader legal dispute between Chishti and TRG’s current leadership, which also includes arbitration cases in the United States. In one US-based arbitration initiated by TRG in January 2023, the company alleges Chishti was restricted from selling or leveraging his shares in TRG.
