Date:11/02/2006 URL: http://www.thehindubusinessline.com/2006/02/11/stories/2006021102410200.htm

Back Haldia Petro: CLB defers decision on IDBI application

Richa Mishra

New Delhi , Feb. 10

WITH a view to enabling the Chatterjee Petrochem (Mauritius) Company and the West Bengal Government to explore the possibility of amicably resolving the ongoing dispute on Haldia Petrochemicals Ltd (HPL), the Company Law Board (CLB) today deferred its decision on IDBI's application.

The board said that the decision on IDBI's application would be taken along with the decision on the main petition.

IDBI had moved the CLB seeking modification in its order dated August 5, 2005 by allowing HPL to allot shares to IDBI.

Chatterjee Petrochem (Mauritius) belonging to The Chatterjee Group (TCG) had approached CLB complaining about acts of oppressing and mismanagement in the affairs of HPL.

One of the grievances of the group was that HPL had proposed to allot shares worth Rs 150 crore to IOC and if the allotment takes place, TCG being in the majority is likely to be reduced to minority.

TCG had sought cancellation of the allotment or alternatively restraining IOC from exercising any rights on the shares.

The CLB had then directed deferment of allotment of shares, which was likely to reduce TCG to a minority.

It had also directed that the proposed allotment of shares worth Rs 135 crore to IDBI in terms of a `corporate debt restructuring' package be deferred.

The board had then said that there shall be no change in the issued/paid-up capital of the company and that status quo of all the shareholders should be maintained as of that date.

Aggrieved by this order, IDBI had moved the latest application before the Principal Bench of CLB, whose Chairman is Mr S. Balasubramanian

The main bone of contention between the parties concerned was allotment of shares to IOC.