HC declines to invervene in IPCL plant deal

NEW DELHI, MARCH 7. The Delhi High Court today declined to intervene in the sale of Indian Petrochemical Corporation's (IPCL), Vadodara plant, to another public sector company Indian Oil Corporation but sought a valuation report on the plant from the Centre.

A bench comprising Mr. Justice Anil Dev Singh and Mr. Justice O. P. Dwivedi, while refusing to issue notice to the Centre and the IPCL, disposed of a petition challenging the deal between the two public sector undertakings under the disinvestment policy.

An IPCL shareholder, Mr. Arvind Gupta, had challenged the deal on the ground that the plant was transferred to the IOC by the IPCL management without its proper valuation.

While seeking the valuation report, the court said the disinvestment cases should be taken by the Government as per the mandate of law.

The petitioner's counsel, Mr. V. P. Tripathi, contended that the IPCL should have obtained a valuation report before selling its equity as was required under the Indian Companies Act.

As the court said that it was a deal only between two public sector companies and no private party was involved, he said a shareholder had a right to know whether the deal was in the interest of the company.

The Government counsel said supreme court in the Modern Food Industries case had clearly said that the courts should not interfere in such matters.

Mr. Tripathi claimed that a multinational company had valued the assets of the plant at about Rs. 3,456 crores.

- PTI

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