High Court rules against arbitration proceeding by TCG against state at International Chamber of Commerce

21-Dec-12

Calcutta High Court ruled that The Chatterjee Group (TCG) could not initiate an arbitration proceeding against the Bengal government at the Paris-based International Chamber of Commerce (ICC) over the ownership of Haldia Petrochemicals Ltd (HPL). Justice Indra Prasanna Mukerji said the arbitration agreement that TCG relied on was actually superseded by subsequent pacts with the West Bengal Industrial Development Corporation (WBIDC), effectively spoiling TCG’s chance of approaching ICC’s court of arbitration. However, Justice Mukerji said TCG could file suit for specific performance within eight weeks to seek redress on the ownership dispute, which is taking a heavy toll on the financial health of HPL. A suit for specific performance is like a court injunction that orders one party to complete the performance promised in a contract. In a dispute between shareholders, the aggrieved party files a suit for specific performance.