A fresh development in the long-running dispute involving TRG Pakistan Limited and its former founder, Zia Chishti, has added further complexity to an already high-profile legal battle spanning multiple jurisdictions.
TRG Pakistan informed the Pakistan Stock Exchange this week that the United States District Court for the Southern District of New York (SDNY) has ruled that several claims brought by Chishti against the company and its affiliates are barred under a release agreement signed in January 2022.
The ruling relates to proceedings pending in New York since 2023 involving Chishti, The Resource Group International Limited, TRG Pakistan, and related management entities. Judge Lewis Stanton ruled that claims linked to events occurring before January 10, 2022, had already been released and therefore could not be litigated further.
The court held that the release agreement signed by Chishti constituted a complete legal bar against claims covered within its scope. Among the claims identified in the ruling were allegations of shareholder oppression against TRG Pakistan and its affiliates.
According to the company’s disclosure, the agreement was executed as part of a redemption transaction in which Chishti received more than US$60 million from TRG International.
The development is particularly notable because similar allegations also formed the basis of shareholder oppression proceedings initiated by Chishti before the Sindh High Court in Pakistan earlier last year.
In that case, the Sindh High Court ordered the cancellation of shares held by Greentree Holdings, the largest shareholder of TRG Pakistan, a decision that substantially altered the company’s voting structure in Chishti’s favor.
TRG Pakistan subsequently challenged the ruling before the Supreme Court of Pakistan, which recently dismissed the appeal through a short order while reserving detailed observations for a later judgment.
Legal experts say the SDNY ruling could become an important factor in future proceedings, particularly because it directly addresses claims that were simultaneously being argued in Pakistani courts.
The company, in its PSX filing, stated that it is currently assessing its legal options in response to the New York court’s determination.
The broader conflict surrounding TRG has increasingly centered on influence over international assets associated with TRG International, an offshore entity that operates independently from TRG Pakistan’s direct ownership structure.
TRG management has repeatedly raised concerns about reputational exposure tied to Chishti, who has faced legal findings related to sexual misconduct allegations in the United States.
With litigation continuing across courts and arbitration forums internationally, the TRG dispute remains one of the most closely followed corporate legal battles involving Pakistan-origin business interests.
