ISLAMABAD: The Supreme Court of Pakistan has ruled that even when using fast-track legal methods in company disputes, courts must ensure fairness and give both sides a proper chance to be heard.
The ruling came in a case involving two groups of shareholders from Ofspace Private Limited — Shah Group and Khan Group. A conflict broke out when Alamgir Khan from the Khan Group transferred 30% of shares to his brother, allegedly breaching shareholder agreements.
The Shah Group had earlier won their case through summary proceedings in the Company Court and later in the Sindh High Court. However, the Khan Group challenged both decisions in the Supreme Court, saying the agreements were forged and proper legal checks were not followed.
A three-judge Supreme Court bench, led by Chief Justice Yahya Afridi, ruled in favour of the Khan Group by a 2-1 majority. The court said that the lower courts failed to allow a proper review of evidence, including cross-examination and document verification, which are essential in cases involving claims of forgery.
The judgment pointed out that admitting secondary evidence without strong legal backing under the Qanoon-e-Shahadat Order, 1984, was a mistake. It emphasized that even under Section 9(3) of the Companies Ordinance — which allows quick proceedings — fair trial principles must still be followed.
In the end, the Supreme Court set aside the earlier rulings, highlighting that fast-track procedures cannot come at the cost of justice. The decision reinforces the need for careful scrutiny and equal treatment in corporate legal battles.