Pakistan News

LHC reinstates Hameed as MD of gas company

LHC reinstates Hameed as MD of gas company

LAHORE: The Lahore High Court (LHC) reinstated on Tuesday Arif Hameed as managing director (MD) of the Sui Northern Gas Pipelines Limited (SNGPL) and sought explanation about his sacking from the company’s board of directors by Sept 17.

Mr Hameed had challenged the sacking through a petition heard by Justice Mamoon Rashid Sheikh.

His counsel Uzair Karamat Bhandari told the court that Mr Hameed was an engineer and had joined the SNGPL in 1978. The company’s board of directors appointed him MD on Oct 19, 2011, and his tenure was extended a few times. The last extension was granted to him on Jan 21, 2015, for two years.

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But, he said, the board issued a notification on Sept 5 terminating his service. The charge of the office of MD was temporarily given to the chief financial officer of the company.

Advocate Bhandari argued that the impugned notification was mala fide and had been arbitrarily issued. He said that the MD of the SNGPL could be removed only by the board through a resolution passed by 3/4th of the directors or by as many shareholders through a special resolution.

No such resolution had been passed by the board and, therefore, the impugned notification was liable to be set aside, he said.

Justice Sheikh suspended the notification and reinstated the petitioner to his post till next hearing.

Published in Dawn, September 9th, 2015

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