July 07, 2026 (MLN): Quice Food Industries (PSX:QUICE)  has been restrained by the Sindh High Court from taking any further steps toward its proposed merger with Indus Food Products, following a petition filed by shareholders holding a combined 26.87% stake in the company.

The petition, registered as Judicial Companies Miscellaneous No. 43 of 2026, came after Quice Food Industries held an Extraordinary General Meeting on June 23, 2026, at which the company had claimed its general body had consented to the merger.

The petitioning shareholders contended that this could not be the case, pointing to Section 279(2) of the Companies Act, 2017, which requires a merger to secure the approval of at least 75% of a company's general body, according to the order.

Since more than a quarter of the shareholding opposed the scheme, they argued, the 75% threshold could not have been met.

The petitioners further alleged serious irregularities in the conduct of the EGM, stating that they were prevented from casting their votes and were mala fidely shut out of the electoral process altogether.

The proposed merger has been a recurring subject of litigation.

Shareholders had earlier moved the High Court through Judicial Companies Miscellaneous No. 29 of 2026, challenging both the share-swap ratio set by Quice Food Industries' Board of Directors and the lack of transparency surrounding Indus Food Products' financial position.

With JCM No. 43 of 2026 now restraining any further movement on the merger, the transaction faces fresh uncertainty even as questions over its structure and underlying financial disclosures remain unresolved before the Court.