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CLB order: Hearing to continue
Our Legal Correspondent
Kolkata, March 13
No case was made out under Section 397 of the Companies Act by The Chatterjee Group before the Company Law Board (CLB), and as such, the order of CLB cannot sustain, argued the counsel of the West Bengal Industrial Development Corporation (WBIDC) before Mr Justice Jayanta Biswas of the Calcutta High Court today. Two appeals have been filed, one by WBIDC and another by State of West Bengal, challenging the order of CLB passed on January 30, 2007, directing WBIDC to transfer its 1.55 million shares of Haldia Petrochemical Ltd (HPL) in favour of the Chatterjee Group. During the arguments, the WBIDC counsel said that IDBI, a financial institution, has also filed an appeal on certain remarks made by the CLB against IDBI. The counsel argued that the dispute of the present litigation is confined between two parties - The Chatterjee Group and WBIDC. Hence, in view of thematter, Section 397 of the Companies Act cannot be invoked, as it was reserved only if there is any mismanagement in the company or a financial dispute, none of which were applicable in this case. The counsel, in support of his contentions, cited various decisions. The hearing will continue.
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