The loss-making Haldia Petrochemicals Ltd (HPL) is set to face another phase of court room battle on ownership issues.

Having failed to convince the West Bengal Government-controlled HPL management, Mr Purnendu Chatterjee-promoted The Chatterjee Group filed a suit before the International Court of Arbitration (ICA) in Paris, seeking transfer of the disputed 15.5 crore shares in its favour.

The arbitration suit was filed according to a shareholder's agreement in July 2004.

In a counter move, HPL this week approached the Calcutta High Court seeking a stay on TCG's move to take the company on international court where arbitration was slated to start on June 7.

The move, however, failed to yield results, as the High Court on Friday did not pass an interim order, as desired by the HPL management.

Mr Justice I. P. Mukherjee of the Calcutta High Court today directed the private promoter (TCG) to file an affidavit in opposition to the prayer (by HPL) by June 6. The HPL management has been asked to respond to TCG's affidavit by June 27.

“In the absence of a stay order, HPL may now have to appear before the international court on June 7,” a source close to the development told Business Line.

Earlier, the HPL management submitted before the court that the arbitration proceedings sought to be initiated by TCG was unenforceable.

The State Government felt that following a Supreme Court order last year, there should not be any case for TCG to seek arbitration on ownership. TCG, however, maintained that the Supreme Court judgment did not take a call on the private agreement between TCG and the State Government involving transfer of the disputed shares.

Related Topics
comment COMMENT NOW