Haldia Petrochemicals (HPL) and the West Bengal (WB) government have sought dismissal of the Chatterjee Group's (TCG) petition in their counter affidavit filed before the Company Law Board (CLB), on the basis that TCG had suppressed vital facts relating to the board meeting held on 11 October, 2004, where it had been a party to the unanimous decision to induct the oil PSU. TCG was a party to the decision on the fresh issue of shares to IOC and had voted for the allotment of 150 million shares at Rs 10 each in the resolution passed in the extraordinary general meeting in January 2005.
One consequence of the legal battle is the continuing interest loss of 1.75% on the company's existing debt. On August 10, IDBI arrived at a decision to hold refinancing of the existing debt till the matter was resolved, and has asked HPL to pay interest at 10.5% instead of 8.75%, effective from 1 July.
The legal validity of issue of shares to the public sector oil major will be determined by the CLB.
05-Sep-05 
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