The Purnendu Chatterjee-led The Chatterjee Group (TCG) received a shot in the arm with the Supreme Court asking it to continue with the arbitration proceeding before the International Chamber of Commerce (ICC), Paris, to resolve its dispute with the West Bengal government and others over the ownership of Haldia Petrochemicals (HPL), the largest petrochemical company in the state.
The Arbitration Reference filed by TCG, a key shareholder of HPL, is for the claim of 360 million shares of HPL, which include the 155 million shares in dispute. A decision in TCG’s favour will ensure that its group firm, Chatterjee Petrochem (Mauritius) Company (CPMC) has a majority stake ? at least 51% ? in HPL.
Holding that ?the arbitration clause mentioned in Clause 15 of the Arbitration agreement of January 12, 2002 is valid, a bench headed by Justice GS Singhvi said TCG is entitled to invoke the arbitration clause for settling their disputes, rejecting the stand of HPL and the state government that the Arbitration Agreement was void and unenforceable and, thus, TCG should be restrained from initiating or continuing with the arbitration proceedings.
While setting aside the Calcutta High Court judgment that restrained CPMC from approaching the ICC, the apex court said that ?the fact that CPIL, which initially was a non-signatory to the agreement does not jeopardise the arbitration clause in any manner?.
Earlier, the SC had restrained the West Bengal government from divesting its stake in Haldia Petrochemicals till November-end after TCG, which claims to have made investment of Rs 822 crore in HPL, had argued that ?until and unless WBIDC and HPL are restrained from dealing with the 360 million shares, which include the 155 million shares already transferred to CP(I)PL as nominee of CPMC (in March 2002), the entire Reference made by latter in the ICC will be rendered infructuous?.