The Foreign Investment Promotion Board (FIPB) will again hear the objections of fire-treatment product manufacturer Houghton Hardcastle India Ltd to the investment approval the Board gave to US-based Houghton International.
The FIPB has agreed before the Delhi High Court to consider the objections raised by Houghton Hardcastle India Ltd (HHIL) under Press Note 1 of 2005 over Houghton International’s India plans to manufacture fire-resistant hydraulic fluid and heat-treatment products.
HHIL, which had technical collaboration and a joint venture with Houghton International when approval was given, has raised objections to the US-based company’s plan under Press Note 1 and approached the Delhi High Court on the matter.
The counsels appearing for the FIPB have informed a Division Bench headed by Chief Justice AP Shah that the Board would conduct a fresh hearing on the issue.
The FIPB, headed by the Secretary to the Department of Industrial Promotion and Policy, also submitted that it would pass a fresh order on the outcome by July 7.
According to Press Note 1, a foreign firm having a joint venture in India has to seek a no-objection certificate from its Indian partner if it wants to operate in the same sector on its own or in a separate joint venture.
The Division Bench observed: “After hearing for some time, the parties agree that oral hearing can be afforded to the appellant (HHIL) as well as third respondent (Houghton International) by the FIPB.”
The court has directed listing HHIL’s petition on July 13 for the next hearing, on which the FIPB’s order would be probably submitted.
