Legal cloud lifts over K-Electric after suit withdrawal

January 26, 2026 (MLN): K-Electric Limited (KE) and its majority shareholder, KES Power Limited (KESP), were cleared of legal claims after plaintiffs Al Jomaih Power and Denham Investment withdrew their suit, the company said in a filing to the Pakistan Stock Exchange.

The dismissal pertains to Suit No. 1566 of 2025, previously registered as Suit No. 1731 of 2022 in the High Court of Sindh, and was granted by the Senior Civil Judge No. 10, South, Karachi, Khalid Hussain Soomro, on January 23, 2026.

Defendants IGCF SPV 21 Limited, Alvarez & Marsal, KESP, and KE were all removed from the case, and pending applications were dismissed as infructuous.

The withdrawal follows a multi-year international legal dispute. In July 2023, the Grand Court of the Cayman Islands issued an “Anti-Suit Injunction,” ruling that Pakistani courts lacked jurisdiction over claims against the defendants.

Subsequent appeals against the injunction were dismissed in October 2024 and December 2025, leaving the plaintiffs with no option but to withdraw the Karachi suit to avoid contempt of the Cayman Islands courts.

The legal battle stemmed from a shareholder dispute within KESP, KE’s majority shareholder.

While the primary claims against KE and its affiliates are now dismissed, the plaintiffs have requested permission to file an amended plaint to pursue any remaining claims against other parties not covered by the Cayman injunction.

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