Calcutta High Court dismisses all appeals in dispute over HPL disinvestment

27-Nov-13

A division bench of the Calcutta High Court dismissed all appeals of the West Bengal government, WBIDC and Haldia Petrochemicals Ltd over a dispute between them and The Chatterjee Group regarding 155 mln shares of the ailing petrochemical company, as per Business Standard. The division bench dismissed the appeals and observed that as the Supreme Court held that the trial court order in this regard was just and proper, all the appeals against it had become infructuous. The trial court of Justice I P Mukerji had earlier restrained the state government from dealing with the disputed 155 million shares of HPL and transfer of the shares to any third party. Challenging this, the state government, WBIDC and HPL, which is at present under the management control of the state, moved the appeal court. The division bench had directed that the instant process of disinvestment in HPL may continue, but no final decision can be taken without the leave of the court. Indian Oil Corporation (IOC) had bid for the shares of HPL which the state wanted to disinvest. TCG moved the Supreme Court against this order and on November one, the apex court held that the trial court order restraining the state government from taking any step for disinvestment of HPL's 155 million shares was proper. The Supreme Court had also observed that the high court would hear the suit in this regard. The Supreme Court had passed an order of status quo for three weeks on November 1. On November 22, TCG moved a petition before the trial court of Justice I P Mukerji and obtained an interim order of status quo, extending the order of the apex court, regarding disinvestment of HPL shares. TCG argued that as the Supreme Court observed that the high court would hear the case, it had no option but to move the trial court.