Karachi: In a significant legal development, the ongoing dispute involving K-Electric Limited's shareholders has reached a resolution following the withdrawal of a lawsuit. On January 23, 2026, the Senior Civil Judge No. 10 of South Karachi dismissed the suit initially filed by Al Jomaih Power and Denham Investment against IGCF SPV 21 Limited, Alvarez and Marsal, KES Power Limited, and K-Electric Limited.

The legal proceedings were initiated over disputes concerning KES Power Limited, which holds a majority stake in K-Electric Limited. The plaintiff's decision to withdraw the lawsuit came in compliance with a previous judgment by the Grand Court of the Cayman Islands. This judgment, dated July 20, 2023, directed the plaintiffs to withdraw their suit against the aforementioned defendants, citing that Pakistani courts lack the jurisdiction to try these claims.

According to information available from the Pakistan Stock Exchange (PSX), K-Electric Limited had been named as Defendant No. 4 in the suit. The withdrawal application, filed by the plaintiffs, was allowed by the Karachi court, leading to the dismissal of all pending applications by the defendants as infructuous.

The plaintiffs had sought to appeal the Cayman Islands' court decision, but their civil appeal was dismissed on October 10, 2024, and further attempts to appeal to the Judicial Committee of the Privy Council were rejected on December 10, 2025.

This resolution marks the end of a protracted legal battle that has been closely watched by stakeholders in the energy sector, particularly those involved with the Pakistan Stock Exchange.