IDBI moves Calcutta High Court against the CLB order for HPL share transfer

13-Mar-07

IDBI has moved the Calcutta High Court against the Company Law Board (CLB) order on transfer of shares held in Haldia Petrochemicals (HPL) to TCG. The petition has been filed by IDBI on behalf of itself and other financial institutions. IDBI has moved the high court bench with a copy of the submitted petition demanding the matter should be heard immediately. The judge, however, has declined from hearing the case as he had personal interest in the matter. The petition has been filed by IDBI on behalf of itself and other financial institutions. Financial institutions led by IDBI claim that the CLB does not have any jurisdiction to order transfer of shares to Chatterjee Petrochem India, without prior consent of IDBI and other lenders of HPL. It has been alleged that the order modified the master restructuring agreement on HPL signed in 2004 for financial restructuring of HPL. IDBI has argued that CLB has no jurisdiction to change the shareholding pattern of HPL without approval of lenders in contravention of the condition of corporate debt restructuring package. IDBI's move to file an appeal against the CLB order was in line with that of the West Bengal government. The state government filed an appeal with the high court on February 16 and the matter was being heard. CLB had, on January 31, upheld the issue of shares for Rs 150 crore to Indian Oil by HPL and has ordered West Bengal Industrial Development Corporation (WBIDC) to exit the petrochem outfit by offering its shares to Purnendu Chatterjee. The CLB order set a deadline of February 28 for the TCG group to purchase the 15.5 crore shares from WBIDC.