Chatterjee seeks review of CLB ruling on Haldia

The Chatterjee Group today filed a fresh petition before the Company Law Board (CLB), seeking a reversal of the decision to issue Haldia Petrochemicals' shares to Indian Oil Corporation.

The group has based its case on the allegation that Haldia Petrochemicals suppressed before the CLB the fact that shares were allotted to IndianOil on August 2, a day before the company encashed a Rs 150 crore IndianOil cheque to this effect.

Haldia Petrochemicals sought the dismissal of The Chatterjee Group's fresh petition on the grounds that it had not brought in any fresh facts and, as the cheque for a consideration of Rs 150 crore had been received on February 18, it was not important when it was encashed.

Further, the counsel for Haldia Petrochemicals contended that the Chatterjees were trying to argue the matter which was to be taken up on September 27 when the original petition would come up for hearing.

The Haldia Petrochemicals counsel further contended that IndianOil's status as a bona fide shareholder could not be questioned as it had paid a valid consideration.

"More importantly, a large part of the Rs 150 crore has been used for the company's restructuring," the counsel for Haldia Petrochemicals said.

Much of the arguments at the hearing today centered around when the shares were issued and when they were actually allotted.

The Chatterjee Group argued that the shares were allotted on August 2 while the company misled the court into believing that the shares were allotted and the cheque was encashed on August 3. This resulted in the interim order, the group's counsel said.

While the CLB reserved its judgment on the petition, Haldia Petrochemicals and other respondents will be required to file their replies to the CLB in response to the original petition filed by the Chatterjees before September 2.

The CLB had, on August 4, allowed IndianOil to retain the 7.5 per cent shares issued by Haldia Petrochemicals but said status quo be maintained till the case was decided.