LAHORE: In a landmark ruling with far-reaching implications for the ownership structure of the Lahore Qalandars, an arbitration tribunal headed by retired Justice Maqbool Baqer has decided against the current management of Kausar Rana Resources (Pvt) Limited (KRR), the parent company of the Pakistan Super League (PSL) franchise.
The tribunal has declared that the transfer of majority shareholding from Qatar Lubricants Company (Qalco) to brothers Atif Naeem Rana and Sameen Naeem Rana was legally void, unlawful, and executed without valid authorisation. As a result, the tribunal has ordered the respondents to either pay Qalco Rs2.296 billion along with markup accrued since June 2020 or immediately restore Qalco’s 51 per cent majority shareholding in KRR.
The high-profile dispute pitted Fawad Ahmed Rana, Managing Director of Qalco and elder brother, against his younger siblings, Atif Rana and Sameen Rana, who currently control the operations of KRR and, by extension, the Lahore Qalandars.
Qalco originally acquired the Lahore franchise rights from the Pakistan Cricket Board (PCB) in 2015. These rights were subsequently transferred to KRR at the time of its incorporation, with Qalco holding a majority stake of 51 per cent. The conflict arose over two disputed share transfers allegedly executed in 2018 and 2020, through which the younger brothers claimed to have assumed majority ownership.
The respondents argued that the transfers were necessitated by geopolitical tensions between Qatar and the United Arab Emirates at the time, particularly during the Abu Dhabi T10 League. According to their claim, because the UAE had severed diplomatic ties with Qatar, it became impractical for a company majority-owned by Qalco to participate in UAE-based activities. They asserted that Fawad Rana had therefore agreed to temporarily transfer four per cent of Qalco’s shares to Atif Rana, making him the majority shareholder.
However, Qalco and Fawad Rana strongly contested this narrative, alleging that the share transfers were fabricated, fraudulent, and carried out without consent. They maintained that no such decision was ever taken and that the documents relied upon by the respondents were forged.
The tribunal’s judgement identified multiple serious deficiencies in the respondents’ case. Justice Baqer noted that Fawad Rana produced travel records and passport copies establishing that he was not present in Pakistan on the dates when the disputed transfer deeds were allegedly signed.
During cross-examination, Sameen Rana conceded that the signatures of the attesting witness — KRR Company Secretary Farooq Anwar — on the transfer documents did not match his verified signatures. The tribunal further observed that the respondents failed to produce original share transfer deeds and did not summon key witnesses, including Farooq Anwar and Imran Ahmed, despite their availability in Lahore.
Significantly, the tribunal recorded that the respondents admitted no payment was ever made for the shares through a pay order or crossed cheque, even though such payments were expressly required under the purported offer letters.
Another major revelation during proceedings was that the younger Rana brothers had secretly sold 30 per cent of KRR shares to an individual identified as Mr. Niazi for $5 million. The claimants alleged that this transaction was deliberately concealed from both Qalco and the arbitration tribunal until it surfaced during cross-examination.
The respondents had also claimed that certain payments made to KRR were linked to a hunting expedition allegedly arranged by the younger brothers for His Highness Shaikh Sultan, Chairman and CEO of Qalco. However, the tribunal found no documentary evidence to support this assertion, noting that no such purpose appeared in the company’s financial statements and that the respondents failed to specify or substantiate the amounts involved.
Justice Baqer dismissed the respondents’ counterclaim of Rs50 billion, ruling that it lacked cogent material and credible evidence.
“The tribunal is constrained to hold that the transfer documents cannot be regarded as having been legally and validly executed, and in any event are void for want of consideration,” the judgement stated.
The tribunal directed that within 45 days, the respondents must either pay Qalco Rs2.296bn along with applicable markup or restore Qalco’s 51 per cent shareholding. Additionally, the respondents were ordered to submit a full and accurate account of all profits earned by KRR, including proceeds from the $5 million share sale, to the company judge of the Lahore High Court.
It is pertinent to note that the dispute was referred to arbitration by the Supreme Court through a judgement dated December 2, 2024, following a petition filed by the respondents challenging the dismissal of their application under Section 34 of the Arbitration Act in a case seeking rectification of KRR’s members’ register.
