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Delhi / Kolkata , Aug. 23

A LONG-DRAWN battle seems to be taking shape between The Chatterjee Group (TCG) on one side and the West Bengal Government, Haldia Petrochemicals Ltd (HPL), and the West Bengal Industrial Development Corporation (WBIDC) on the other.

Alleging "breach of trust and confidence" by the joint venture partner, the West Bengal Government, TCG also pulled in Mr Tarun Das, the well-known industrial expert and Chairman of HPL, into the ongoing murky legal battle.

In a fresh petition filed on Tuesday at the Company Law Board, TCG sought review of the Board's earlier order that upheld allotment of shares to IOC in HPL. It also alleged that Mr Das was aware of all developments in the company but was silent on the whole matter.

The Company Law Board (CLB) reserved its order till the completion of the total hearing.

Chatterjee Petrochem (Mauritius) Company, in its application, alleged suppression of facts and fraud by WBIDC, IOC and Mr Das. It raised doubts over the allocation of shares to IOC even before the encashment of the cheque worth Rs 150 crore.

TCG argued that fresh shares were issued to IOC on August 2, but the oil major's cheque was submitted a day later and not as stated earlier at the CLB. It was further alleged that Mr Das was aware of the arrangement between IOC and WBIDC, but it was not disclosed before the CLB.

TCG counsels said neither WBIDC nor IOC had told HPL or TCG that the oil company was "not a mere portfolio investor" and that the shares issued to it would be bought back by WBIDC if IOC fails to raise its stake beyond the initial investment of Rs 150 crore.

IOC also withheld information relating to the arrangement between itself and WBIDC at CLB. TCG argued that it was "breach of trust and confidence by a joint venture partner."

Thus, TCG submitted that the August 5 order of CLB permitting IOC to retain shares be recalled and the allotment be set aside.

In its order, the CLB had declined to put any restriction on the 7.5 per cent shares allotted to IOC in HPL, pending a final decision on the matter. The Board had also said the status quo of shareholding pattern of all stakeholders as on August 5 be maintained. It had, however, restrained the company from allotting shares worth Rs 135 crore to the lenders, IDBI, till the disposal of the case.

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