The Calcutta High Court on Thursday ordered status quo on the “sale of shares” of Haldia Petrochemicals Ltd (HPL) till December 16 or further orders, a move that will hit the West Bengal Government’s plan to divest its stake in the ailing petrochemical company.
The State Government has a near 40 per cent stake (or 675 million shares) in HPL.
Of the total holding, around 9 per cent (or 155 million) is disputed, as The Chatterjee Group (TCG), another promoter of HPL with a 41 per cent stake, has claimed ownership over the same.
The State had conducted an auction in October this year for its shares in the company in IndianOil Corp Ltd emerged as the sole bidder.
The Court has not clarified whether “status quo” is to be maintained for the disputed shares or the entire 40 per cent stake put on the block.
“….Status quo (on sale of shares) shall continue till December 16 or until further orders, whichever is earlier,” Justice I.P. Mukherji maintained.
Based on a petition by TCG, the High Court had earlier stayed the transfer of the disputed shares till November 26 or further orders. The stay is now extended .
Pending Appeal
Justice Mukherji observed that a pending appeal by TCG before the Supreme Court to move to the Arbitration Cell of International Chamber of Commerce at Paris would become infructuous if share transfer is allowed.
Asked if the Court had barred the sale of the entire block of 675 million shares or a part thereof, Siddhartha Mitra, the advocate appearing on behalf of TCG, said: “I do not know. The status quo is on the sale of shares, but nothing has been mentioned about the quantum.”
Financial Trouble
Earlier in the day, State Advocate General Bimal Chatterjee argued that HPL’s financials were in a precarious position. There is an urgent need of capital infusion. As such, the process of share transfer needs to be expedited.