SDNY Court Rejects Anti-Suit Injunction in Zia Chishti’s Legal Battle

July 2, 2026 (MLN): TRG Pakistan Limited’s (PSX: TRG) former CEO Zia Chishti has secured a key legal victory in his ongoing dispute with The Resource Group International Limited (TRGI) and its affiliates after the U.S. District Court for the Southern District of New York (SDNY) denied a motion to block his litigation in Pakistan.

In a July 1, 2026 order, Judge Louis L. Stanton ruled that TRGI, Mohammed Khaishgi, Hasnain Aslam, and TRG Pakistan Limited (TRG-P) collectively failed to meet the legal thresholds required to obtain an anti-suit injunction against Chishti’s lawsuit in Pakistan. The court denied the motion in full, allowing Chishti’s proceedings to continue.

The ruling addressed Resource Group’s efforts to halt Chishti’s contempt petition in the Supreme Court of Pakistan, which sought to enforce prior judicial orders requiring TRG Pakistan to hold overdue board elections and return shares acquired by its affiliate Greentree. These orders were issued in CPLA cases 872-K, 873-K, and 2543 of 2025.

Chishti’s motion targeted Resource Group’s claim that his legal actions were barred under a 2022 release agreement. However, the SDNY found that claims related to Greentree’s share acquisition—central to the dispute—were not covered by the release, as they occurred after Chishti signed the agreement. The court also noted inconsistencies in Resource Group’s arguments, including misrepresentations about a tender offer that Chishti alleged was never disclosed.

The SDNY emphasized that the tender offer, initially filed in December 2024 and later disclosed in January 2025, was not addressed in the May 12, 2026 ruling that broadly released pre-2022 claims. This omission, the court stated, undermined Resource Group’s position that the dispute stemmed from a resolved dividend-diversion issue.

The court criticized Resource Group for filing what it called an “emergency motion” despite being aware that Greentree-related claims were not released. It also highlighted concerns about the accuracy of statements made by both parties, suggesting that unreliable information was complicating the litigation process.

By denying the anti-suit injunction, the SDNY has allowed Chishti’s Sindh High Court proceedings to proceed, including the enforcement of board-election orders and a related contempt petition. This outcome represents a significant setback for Resource Group’s strategy to consolidate the dispute in U.S. courts.

Court’s ruling

The order explicitly states: “Resource Group’s motion for an anti-suit injunction is denied. Dkt. No. 218. This Order also disposes of TRG-P’s letters in support of TRG-I’s motion. Dkt. Nos. 220, 227. So Ordered.”

Source link