Calcutta High Court restrains Chatterjee Petrochem from acting upon its request of adjudication

21-May-12

The Calcutta High Court today restrained Chatterjee Petrochem (Mauritus) Company Ltd (CPMCL) by an order of injunction from acting upon its request of adjudication at the International Chamber of Commerce's Court of Arbitration in Paris, as per Press Trust of India. A division bench of Chief Justice J N Patel and Justice S Chakraborti passed the order of injunction for eight weeks. The International Chamber of Commerce was also restrained from taking any steps whatsoever in relation to the request for eight weeks. The bench also directed that the trial court should hear out the case filed by Haldia Petrochemicals Ltd (HPL) against the CPMCL's plea for arbitration by July 10. Earlier, the trial court of Justice I P Mukerji had on May 4 refused to pass an interim order on a petition by Haldia Petrochemicals Ltd seeking stay on CPMCL's move to approach the International Chamber of Commerce for resolution of transfer of 155 million shares in its favour. HPL had moved the division bench challenging the order of Justice Mukerji. The company has claimed that the arbitration proceedings sought to be initiated by CPMCL was unenforceable. But CPCML stated that the Supreme Court did not mention transfer of 155 million shares which was left between the two promoters to resolve among themselves. It stated that it had invoked the arbitration clause of the January 12, 2002 agreement between the two promoters, the other one being West Bengal government, which ought to be resolved at the international council.