HC dismisses all appeals in dispute over HPL disinvestment

A division bench of the Calcutta High Court today dismissed all appeals of the West Bengal government, WBIDC and Haldia Petrochemicals Ltd over a dispute between them and The Chatterjee Group regarding 155 million shares of the ailing petrochemical company.
The division bench, comprising Justice Subhrokamal Mukherjee and Justice A K Mondal, dismissed the appeals and observed that as the Supreme Court has held that the trial court order in this regard was just and proper, all the appeals against it had become infructuous.
The trial court of Justice I P Mukerji had earlier restrained the state government from dealing with the disputed 155 million shares of HPL and transfer of the shares to any third party.

Challenging this, the state government, WBIDC and HPL, which is at present under the management control of the state, moved the appeal court.
The division bench had directed that the instant process of disinvestment in HPL may continue, but no final decision can be taken without the leave of the court.
The Indian Oil Corporation (IOC) had bid for the shares of HPL which the state wanted to disinvest.

TCG moved the Supreme Court against this order and on November one, the apex court held that the trial court order restraining the state government from taking any step for disinvestment of HPL's 155 million shares was proper.

The Supreme Court had also observed that the high court would hear the suit in this regard.
The Supreme Court had passed an order of status quo for three weeks on November one.
On November 22, TCG moved a petition before the trial court of Justice I P Mukerji and obtained an interim order of status quo, extending the order of the apex court, regarding disinvestment of HPL shares.
The division bench, which the state and others moved, today dismissed the state's appeal on the ground that as the Supreme Court held that the trial court order was just and proper, all the appeals have become infructuous.

Advocate General Bimal Chatterjee for the state and other counsels for HPL and WBIDC opposed the plea of TCG stating that the trial court of high court has no jurisdiction to extend an order of Supreme Court.
TCG argued that as the Supreme Court observed that the high court would hear the case, it had no option but to move the trial court.