JS Bank dismisses plaintiffs' application against BankIslami sale case

March 07, 2023 (MLN): JS Bank termed the plaintiffs' application pertaining to BankIslami Pakistan Limited (BIPL)’s baseless as it has been grounded on misleading information regarding applicable laws and regulations.

In a notification to PSX, the Bank said, “The legal advisor of the Bank is of the view that the order has been granted mainly because misleading and incomplete information regarding applicable laws was provided by the Plaintiffs in support of their frivolous application.”

The legal advisor of the Bank is confident that this temporary injunction will be vacated soon, it added.

In a recent development, the Sindh High Court has granted an interim injunction against a proposed acquisition of majority shares and control of BankIslami Pakistan Limited by a bank. The injunction was granted on the application of plaintiffs Muhammad Ayub Tareen, Mohsin Balagamwala, Asif Mannan, and AKD Investment Management Limited.

BankIslami Pakistan Limited is a leading Islamic bank in Pakistan and has been providing banking services to customers for many years.

The bank's proposed acquisition by JS Group has generated considerable interest and speculation in the business community and among investors.

The plaintiffs, in this case, have raised objections to the acquisition and have sought an injunction to prevent the bank from proceeding with the acquisition.

The court has granted an interim injunction, pending further legal proceedings.

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