Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ACCOUNTING STANDARD :: cpt :: VAT RATES :: form 3cd :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ACCOUNTING STANDARDS :: articles on VAT and GST in India
« News Headlines »
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17
 Non-taxing GST apps to make filing income tax return less painful

HC allows Bengal Govt plea on Haldia Petro
September, 22nd 2007
Upholds entry of IOC as partner; CLB order set aside

In drivers seat

CLB ordered in Jan that Govt transfer its shares to TCG

TCG had contested issue of shares to IOC

Promoters in courtroom battle over ownership since 2006

The Calcutta High Court today put the West Bengal Government in the driving seat of Haldia Petrochemicals Ltd (HPL) by dismissing a Company Law Board order of January directing that the State Government transfer its 155 million shares in HPL to The Chatterjee Group (TCG).

A Bench of Mr Justice Jayanta Biswas also refused to grant stay of operation of the order that TCG had sought, for filing an appeal at a higher forum.

IOC entry

The Court also upheld entry of IOC as strategic partner in the company.

The CLB had pegged the price of the disputed shares at Rs 10 each and also allowed an exit route to the State Government (holding an additional 520 million shares in HPL) from the company by way of selling its stake to the Purnendu Chatterjee-led TCG.

According to HPL sources, by reversing the CLB order in regard to the disputed shares, the Court has ratified the 51.67 per cent majority stake control of the State Government (through West Bengal Industrial Development Corporation Ltd) in the company.

Appeal rejected

Mr Justice Biswas also rejected an appeal by TCG against the CLBs order that upheld fresh allotment of 150 million shares to IOC by HPL.

The State Government had roped in the refining and marketing company as a strategic partner in the project.

TCG, however, contested the issue of shares constituting 8.19 per cent of the paid-up capital.

It may be mentioned that IDBI and other lenders to the company had also became party in this courtroom battle, demanding allotment of shares as per the corporate debt restructuring process.

The fate of the plea, however, will not be known till receipt of the detailed order in the next few days.

The State Commerce and Industry Minister, Mr Nirupam Sen, expressed his satisfaction over the order.

The judgement has upheld our views and we are happy.

TCG official sources refused to comment.


Differences started cropping up between the two promoters over injection of funds in the then ailing HPL from 2004, and the one-time friends began a court battle over ownership of the company in 2006.

TCG which for all practical reasons had to leave the management control of HPL to the State Government was the first to move CLB alleging mismanagement in HPL.

The State Government, on its part, cited repeated failure by the private partner to live by its promises.

The Government has also maintained that it was agreeable to exit from the company only if TCG takes the entire stake at one go at current market prices.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions