TCG may move apex court against HC order

The Chatterjee Group (TCG), one of the key promoters of Haldia Petrochemicals, Limited (HPL), is likely to move the Supreme Court against the Calcutta High Court's order barring it from approaching the International Court of Arbitration for control of about 155 million shares of the company. "We are trying to carve out the intricacies of the judgment and after a deeper study, we will make a move. A legal option is possible," said a TCG official. The company claimed it had voting rights over the contentious 155 million shares, vital to controlling HPL.

TCG is involved in a protracted legal battle with the West Bengal government, another major promoter, for these 155 million shares. The tussle goes back to 2005, when TCG had initiated proceedings before the Company Law Board (CLB) against the government and West Bengal Industrial Development Corporation (WBIDC) to gain controlling stake and management control. After CLB had passed an order in favour of TCG, the state government and WBIDC had appealed before the high court. Which, on September 21, 2007, set aside the CLB order. Subsequently, TCG moved the Supreme Court, which passed a judgment against it on November 30, 2011. Later, TCG chief Purnendu Chatterjee sought to initiate arbitration before the Paris-based International Chamber of Commerce's International Court of Arbitration. The move was challenged by HPL in the high court, which barred it from approaching ICA. Even if TCG decides to move the apex court again, it would have to wait, as the court would reopen in July.

Usually, said a legal expert, only petitions for criminal cases were accepted by the court during the vacation.

"Ninety-nine per cent of the time, any civil case wouldn't be entertained during the period when the apex court is not functioning. TCG will have to wait till the SC reopens in July," he said. "The deadline to submit EoIs (expressions of interest) for the government's stake in HPL is June 10, but there are procedures carried out in phases and by the time the government finalises who it wants to sell the shares to, it would be September," he added. After an HPL board meeting on Tuesday, Purnendu Chatterjee had said HPL didn't need extra money; it merely needed proper management. HPL Managing Director Sumantra Choudhury's term ends on June 18 and as West Bengal Chief Minister Mamata Banerjee isn't happy with his performance, he isn't being offered an extension. However, officials said the move might be reconsidered.

Earlier, HPL Chairman Partha Chatterjee had said the company wasn't in a hurry to appoint a new managing director.

HPL has reappointed its chief financial officer (CFO) D S Chakraborty for a fresh four-month term. "The CFO is integral to the stake sale. Therefore, I have got him back for the next four months," said Partha Chatterjee.