KARACHI: K-Electric Limited (KE) and its majority shareholder, KES Power Limited (KESP), have been cleared of legal claims after plaintiffs Al Jomaih Power and Denham Investment formally withdrew their lawsuit, according to a filing submitted to the Pakistan Stock Exchange on Monday.
The suit, registered as Suit No. 1566 of 2025 (formerly Suit No. 1731 of 2022), was dismissed by Senior Civil Judge No. 10, South Karachi, Khalid Hussain Soomro, on January 23, 2026. As part of the order, all defendants, including IGCF SPV 21 Limited, Alvarez & Marsal, KESP, and K-Electric, were removed from the proceedings, while all pending applications were declared infructuous.
The withdrawal brings to a close a prolonged legal battle that had spanned multiple jurisdictions. The dispute originated from shareholder disagreements within KESP, the majority owner of K-Electric, and eventually escalated into international litigation.
In July 2023, the Grand Court of the Cayman Islands issued an Anti-Suit Injunction, ruling that Pakistani courts did not have jurisdiction to hear claims against the defendants.
The injunction effectively barred the continuation of proceedings in Pakistan. Subsequent appeals filed by the plaintiffs were dismissed in October 2024 and again in December 2025, reinforcing the Cayman court’s position.
Following the dismissal of these appeals, the plaintiffs were left with little choice but to withdraw the Karachi-based suit to avoid potential contempt proceedings in the Cayman Islands.
While the ruling fully clears K-Electric and its affiliates from the disputed claims, the plaintiffs have sought permission to file an amended plaint to pursue any residual claims against other parties not covered by the Cayman injunction.
Market participants viewed the development as a positive step, removing a lingering legal overhang on K-Electric and offering greater clarity for investors regarding the company’s legal and ownership landscape.
