US Court Orders Zia Chishti to Surrender Assets in Arbitration Award Enforcement
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TL;DR
- US District Court in New York orders Zia Chishti to surrender assets to satisfy a $9.1M arbitration award.
- Award relates to contractual violations involving TRG Pakistan shares.
- The court found significant inconsistencies in Chishti's testimony and noted attempts to hinder creditors.
- Assets can include TRG Pakistan shares held by Chishti's spouse.
Overview
The US District Court for the Southern District of New York has issued an enforcement order compelling Zia Chishti, former CEO of TRG Pakistan, to surrender assets to satisfy the remaining balance of a $9.1 million arbitration award. The order involves transfer of goods or shares, including shares held by his spouse, and addresses prior findings about Chishti's handling of company assets.
What Happened
The court enforced a 2025 arbitration award against Zia Chishti, requiring him to pay the remaining $9.1 million owed to TRG International (TRGI).
Enforcement proceedings detailed that payment can be fulfilled either in cash or through the transfer of TRG Pakistan shares held by Chishti's spouse.
The court found transfers totaling approximately $9.8 million to Chishti's spouse raised concerns that assets had been moved to hinder or delay TRGI and the US Internal Revenue Service, which is owed about $10 million.
Judicial findings highlighted Chishti's lack of candor and material inconsistencies in his testimony, supporting claims of deliberate attempts to obstruct creditors.
Context
The arbitration award stemmed from contractual disputes about the pledging and management of TRG Pakistan shares. TRGI sought enforcement of the award in US federal court following what it alleged were asset transfers meant to frustrate collection.
The case also involves scrutiny of Chishti's financial practices, as the US government is separately seeking unpaid tax revenue.
Why It Matters
- The ruling enables TRGI to pursue asset recovery through court-mandated transfers, including shares linked to Chishti's spouse.
- The decision underscores US courts' willingness to address asset transfers that may undermine arbitration award enforcement.