By IANS
Kolkata : In a legal setback to Purnendu Chatterjee-led The Chatterjee Group (TCG), Calcutta High Court Friday set aside the order of Company Law Board (CLB) that had told the West Bengal government to transfer 155 million shares of Haldia Petrochemical Ltd (HPL) to its joint venture partner and exit the company.
Justice Jayanta Kumar Biswas overturned the order of CLB passed January 21 this year and allowed the appeals of the West Bengal government and the state-run West Bengal Industrial Development Corporation (WBIDC) in respect of the litigation over Haldia Petrochemicals Ltd.
The court also upheld Indian Oil Corporation (IOC)’s entry into HPL, a move opposed by TCG.
Chatterjee’s spat with the state government started over the handing over of a 7.5 percent equity stake in HPL to IOC, which the former felt would reduce him to a minority holding in HPL.
He moved the CLB subsequently, ruling out any out-of-the-court settlement.
The West Bengal government and WBIDC had appealed the High Court against the CLB order that called for transfer of 155 million shares to TCG.
The court not only dismissed the appeals filed by Purnendu Chatterjee and his supporting parties but also rejected the objections filed by them against the state government’s appeals.
The prayer for granting of stay of operation of Friday’s judgement by the counsels of Purnendu Chatterjee has also been refused by the court.
The High Court set aside the petition, filed by TCG before it under Section 397 and 398 of the CLB Act, challenging the operation of HPL.
After 50 days of intense legal proceedings, Justice Biswas set aside the order of CLB and allowed the government’s appeal.
A long-drawn battle had begun between the TCG and the West Bengal Government over HPL in 2005 after TCG alleged “breach of trust and confidence” by joint venture partner, the West Bengal Government, for the HPL Board’s decision to allot shares to IOC without informing TCG.
HPL is a naphtha-based petrochemical complex located 125 km from Kolkata.
HPL, a showpiece project of the state government, was jointly promoted by WBIDC, The Chatterjee Petrochem (Mauritius) Co. Ltd. (a TCG venture) and the Tata Group, with an investment of $1.2 billion.
HPL began full commercial production in August 2001.