LHC orders SECP to register charge of Ramzan Sugar Mills

LAHORE: The Lahore High Court Tuesday allowed a petition by Ramzan Sugar Mills of the Sharif family against non-registration of its upgraded charge by Security Exchange Commission of Pakistan (SECP). Justice Ayesha A. Malik had reserved her decision on the petition last week which she announced Tuesday. The mills’ administrator through counsel Salman Aslam Butt submitted before the court that all of its assets had been frozen following references made by the NAB. He said he requested the SECP to register its upgraded charge as required under Companies Act 2013. However, the counsel said the Commission refused to register the shares owing to the NAB references pending against the sugar mills. He said the SECP asked the mills to furnish a NOC by the NAB. The counsel argued that the NAB had previously sent a letter to the SECP about a “caution mark” on sale and purchase of the mills’ shares only. He said no NOC from the Bureau was required for the purpose as the matter did not pertain to sale/purchase of shares.

He asked the court to order the SECP to register the charges of the mills so it could get its assets mortgaged for a bank loan. Opposing the petition, NAB prosecutor Asim Mumtaz said the pending investigation was not related to the company (mills) but its shareholders. However, he opposed the petition and said the sugar mills could not avail the facility during the pendency of the cases. The judge allowed the petition and directed the SECP to register the charge of the petitioner/mills.