Calcutta HC stays CLB order on HPL

Kolkata, Feb 16 (UNI) The Calcutta High Court today stayed Company Law Board's (CLB) order on transfer of Haldia Petro-chemicals' shares to Chatterjee Group.

CLB, in an order on January 31, had asked the state government to transfer 155 million shares of HPCL to Chatterjee Group (TCG), which would have given it the management control of the company.

Justice Jayanta Biswas passed the interim order maintaining status quo on the position.

Counsels appearing on behalf of the petitioners, WBIDC and the West Bengal government, sought a stay on the CLB order arguing that transfer of shares being held by them along with 520 million shares would give a total ownership control of the company to TCG, which was the bone of contention.

Contesting the agrument, the government pleaded that it was mentioned in the CLB order that TCG and others held 58 per cent of HPL shares, while, WBIDC had 37 per cent, Tatas three per cent and others two per cent.

TCG counsels also maintained that 155 million shares had been transferred by WBIDC in 2004 following which collective shareholding by TCG and others stood at 58 per cent.

The CLB in its order had directed transfer of 155 million shares to Chatterjee Petrochem, a Mauritius based company and other investors.

The next hearing has been fixed on February 28.

UNI