IDBI moves court against CLB order deferring share allotment

29-Apr-06

The Industrial Development Bank of India (IDBI) has moved Delhi High Court against the company law board (CLB) order deferring its allotment of Haldia Petrochemicals. The CLB, has allowed the allotment of a 7.5% stake to IOC, but has restrained the company from allotting shares worth Rs 135 crore to IDBI till the final disposal of the case. The CLB had ruled that the decision on IDBI's application, seeking allotment of shares, would be taken at the time of final hearing on the main petition. The order has come in the way of implementing the package approved for the corporate debt restructuring of the company. CLB is of the opinion that with further allotment of shares to lenders, according to the terms of the corporate debt restructuring, the petitioner's (TCG) stake would be reduced to a minority. IDBI has argued that its agreement with Haldia Petrochemicals was not considered by the CLB, alleging that The Chatterjee Group (TCG) has obtained the interim order by "suppression of material facts regarding its arrangement with Haldia Petrochemicals". The CLB had acted beyond the scope of the petition as there was no request to restrain the issuance of shares in its favour.