Date:22/09/2007 URL: http://www.thehindu.com/2007/09/22/stories/2007092256281700.htm

Business

Court dismisses transfer of HPL shares to TCG

KOLKATA: The Calcutta High Court on Friday set aside an order of the Company Law Board that directed the West Bengal Government to exit from Haldia Petrochemicals Ltd. by selling its stake to the joint venture partner, The Chatterjee Group (TCG).

A bench of Justice Jayanta Biswas also dismissed the CLB order that asked the State Government to transfer its 155 million shares in HPL to Purnendu Chatterjee-led TCG. The court, however, upheld the Indian Oil Corporation’s entry into HPL.

Allotment to IOC

Allowing an appeal by the West Bengal Government and the West Bengal Industrial Development Corporation (WBIDC), the court quashed the CLB order passed on January 31.

Mr. Justice Biswas also rejected an appeal by TCG against the CLB’s order that upheld allotment of 150 million shares to IOC by HPL. This was a fresh allotment by HPL to IOC.

Besides, Mr. Justice Biswas refused a prayer by TCG counsels to stay his order for two weeks for the company to appeal against the order before a higher bench. — PTI