The Hindu Business Line : Haldia Petro: CLB reserves order on TCG plea, clubs it with main petition

The CLB has said this application will be heard along with the main petition.

In his order, the CLB Chairman, Mr S. Balasubramanian, said "Since I have already stated in the order (August 5) that allotment to IOC would be subject to final order on the petition, I consider it appropriate that the allegations contained in the application also should be heard along with petition. Accordingly, I reserve my order on this application to be clubbed with the order on the main petition."

In its application, TCG had pleaded before the Board to recall its earlier order and set aside the allotment made to IOC. The applicants submitted before the CLB that even though in the order dated August 5, it is recorded that counsel for HPL said that both the exercises relating to encashment of cheque and issue of shares were completed in the forenoon of August 3, the shares were actually allotted on August 2. Therefore, a false statement was made on August 4, the applications said.

In other words, the shares had been allotted even before the encashment of cheque and by this false statement the CLB was induced to pass the impugned order on August 5, TCG submitted.

The CLB, after considering the application, observed that in the earlier order it had been specifically stipulated that allotment of share to IOC would be subject to the final order on the petition.

In the same order, it had also been recorded that IOC had not been alleged to be a party either to the circular resolution or to the hurried allotment of shares and that it appeared to the Board that IOC was a bona fide allottee of the impugned shares for valuable consideration.

"The same observation would hold good in the present case assuming that the counsel for the company had made a false statement, IOC was not a party to it," the order said.

Whether shares could be allotted before encashment of cheque and other points raised by TCG had to be argued in detail, the Board noted.

It asked the respondents - HPL and others, to file their replies to the application by September 10 and rejoinder, if any, to be filed by September 20.

This application would be heard along with the main petition on the dates already fixed, it said.

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