Sindh High Court allows PHDL winding-up under court supervision

September 08, 2026 (MLN): The Sindh High Court has allowed a petition seeking continuation of the voluntary winding-up proceedings of Pakistan Hotels Developers Limited (PSX: PHDL) subject to the court's supervision.

Pakistan Hotels Developers Limited was placed into voluntary winding up following a special resolution passed by its members on December 31, 2024. Under the resolution, Mohsin Ferozuddin, Masroor F. Baweja, Muzaffar Baweja, Zaheer Baweja and Zubairuddin Baweja were appointed as joint official liquidators of the company, without remuneration, with full authority to wind up the company's affairs, realize its assets and distribute proceeds.

Counsel for the petitioner submitted that a declaration of solvency had also been duly made and placed on record.

The winding-up process could not be completed within the one-year period, following which an extension of six months was sought and allowed by the court on February 17, 2026.

Counsel further submitted that due to pending litigation, the process could not be completed even within the extended period, prompting the petition seeking continuation of the winding-up proceedings under court supervision.

Counsel further submitted that the liquidators, who are also directors of the company and have been working without remuneration, may continue as official liquidators of the court, which would be more expedient and cost-efficient.

The Securities and Exchange Commission of Pakistan (SECP), through its counsel, confirmed the contents of the petition and raised no objection to it being allowed.

The court held that a petition for continuation of a voluntary winding up subject to its supervision is deemed a petition for winding up by the court for the purpose of jurisdiction over suits and other legal proceedings, and directed that notice of the main petition be published in two leading daily newspapers, one in Urdu and one in English, as well as in the Official Gazette.

The order was passed by Justice Suman Rafat Imtiaz of the Sindh High Court.

The aforementioned information was disseminated through a notification to Exchange.

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