Financial Daily from THE HINDU group of publications
Saturday, Aug 06, 2005
Financial Daily from THE HINDU group of publications Saturday, Aug 06, 2005 |
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Regulatory Bodies & Rulings Corporate - Regulatory Bodies & Rulings CLB upholds share allotment to IOC in Haldia Petrochem — Shares for IDBI restrained till final order Our Bureau
New Delhi , Aug 5 INDIAN Oil Corporation can heave a sigh of relief for some time, with the Company Law Board declining to put any restriction on the 7.5 per cent shares allotted to it in Haldia Petrochemicals Ltd, pending a final decision on the matter. While stating that status quo of shareholding pattern of all stakeholders as on August 5 be maintained, the Board, however, restrained the company from allotting shares worth Rs 135 crore to the lenders, IDBI, till the disposal of the case. In an interim order, issued here today, the CLB Chairman, Mr S. Balasubramanian, observed: ``I do not propose to put any fetters on the right of IOC on the shares other than stipulating that the impugned allotment shall be subject to the final order on the petition.'' He also noted that even after this allotment, Chatterjee Petrochem (Mauritius) Company (CPMC) and others would continue to hold majority shares - 53 per cent - in HPL. IOC had handed over the cheque dated February 17 to the company, which encashed it and transferred the shares on August 3. The Board, however, declined the request of CPMC and others on directing the company to keep the Rs 150 crore paid by IOC in a separate account. Taking into considering the submissions made by CPMC and others that with further allotment of shares to IDBI as per the corporate debt restructuring package they would become minority stakeholders, the Chairman stated, "I direct the company to defer allotment of any further shares till the disposal of the petition. In other words, there shall be no change in the issued/paid-up capital of the company." The main contention of the CPMC and others was that in spite of various agreements between them and West Bengal Industrial Development Corporation Ltd (WBIDC) and the West Bengal Government that the shares held by WBIDC would be transferred to them, in a complete breach of trust and confidence, the two refused to do so. CPMC further alleged that by allotting shares to IOC, WBIDC and West Bengal Government are trying to reduce them to a minority. The final hearing is scheduled for September 27 and 28.
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