SC directs CLB to decide afresh on dispute of NTADC promoters

The Supreme Court today directed the Company Law Board (CLB) to decide afresh on the dispute between the stakeholders of the New Tirupur Area Development Corporation (NTADC).

A bench headed by Chief Justice S H Kapadia directed the CLB to decide on the dispute over the veto rights held by one of its Mauritius-based promoters, Aidqua Holding.

It set aside the earlier orders passed by the Madras High Court and CLB in this matter.

The CLB would also decide over plea of three promoters - Tamil Nadu Water Investment Co, Infrastructure Leasing & Financial Services (IL&FS) and Tirupur Water Investment Co - of NTADC, seeking disclosure of shareholding of Singapore based Asian Infrastructure.

Aidqua Holding, which was an investment vehicle for Asian Infrastructure for the project had transferred its stake to the Singapore based firm.

"In the present circumstances, we set aside the orders of CLB and the High Court. Let the matter decided by the CLB," the bench said.

The three promoters, which hold 47 per cent stake in NTADC, have challenged Adiqua's veto power in NTADC and have requested for the disclosure of the share holding pattern of Asian Infrastructure.

They submitted that while their plea for challenging the veto clauses was pending before the CLB, the shares were transferred to Asian Infrastructure Pte Ltd.

During the last hearing, senior counsel Harish Salve, appearing for the three promoters, submitted that they have right to know about the company that holds 27 per cent right along with veto power in the joint venture.

"If the Singapore company walks away than we don’t know who owns the veto rights," he had said.

NTADC, incorporated in 1995, is the first private water supply and sanitation project in the country. It was promoted by Government of Tamil Nadu and IL&FS as an SPV to implement the Tirupur Area Development Programme (TADP).

It was to develop, construct, operate and maintain a 185 million litre per day capacity water supply project and sewerage facility in Tirupur Municipality at a total cost of about Rs 1,023 crore.