HC extends status quo on sale of HPL shares

Nov 29 2013, 05:15 IST
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SummaryThe Calcutta High Court Thursday extended till December 16 the status quo on the sale and transfer of 155 million shares of ailing Haldia Petrochemicals Ltd to IOC.

The Calcutta High Court Thursday extended till December 16 the status quo on the sale and transfer of 155 million shares of ailing Haldia Petrochemicals Ltd to the Indian Oil Corporation (IOC), over the control of which The Chatterjee Group (TCG) and West Bengal government are embroiled in a legal battle.

In compliance with an order passed by the Division Bench, the trial court of Justice I P Mukerji Thursday heard the arguments of both the TCG, one of the promoters of HPL, and the state government.

Moving the plea, Advocate General Bimal Chatterjee said that the government wants to transfer 650 million shares it hold in HPL to the IOC to help revive the ailing petrochemical unit.

However, TCG prayed for extension of status quo on the sale of the shares, stating that its appeal on its right to go for arbitration at the Arbitration Cell of International Chamber of Commerce at Paris was pending before the Supreme Court.

A counsel of the West Bengal Industrial Development Corporation argued that earlier TCG was offered the shares at Rs 75 each but they refused saying they were ready to pay only Rs 10 per share, which was not acceptable.

Advocate Sidhartha Mitra, counsel of TCG disputed the claim saying his client was never offered the HPL shares by the state government.

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