HC strikes down CLB order passed in favour of PCG

Kolkata, Sep 21 (UNI) Calcutta High Court today struck down the Company Law Board's order which was passed in favour of the Purnendu Chatterjee Group.

The PCG had filed a petition before the high court under sections 397 and 398 of the CLB Act challenging the operation of the Haldia Petrochemicals Limited.

The PCG's main allegation was that allotment of shares amounting to Rs 150 millions to Indian Oil Corporation was illegal.

It also alleged that the transfer of controlling shares from the government of West Bengal to The Chatterjee Group was in violation of the contract.

In an order of January 31 last the CLB held that the allotment of shares to the Indian Oil Coorporation was legal.

On the other hand, the CLB directed the government of West Bengal to transfer share to PCG, both equity and preferential.

Challenging the order, the government filed a writ petition before the high court. A petition was also filed by the West Bengal Industrial Development Corporation before the court on the same ground.

The high court today stayed the transfer of shares to the PCG.

The PCG further filed a separate of cross-objection.

After 50 days of intense hearing, Justice Joyanta Kumar Biswas set aside the CLB's order and allowed the government's appeal.

Earlier, Justice Biswas also turned down the verbal appeal by the PCG seeking a stay on the CLB meeting held in New Delhi a few days ago.

UNI