Haldia Petrochem tussle: HC refuses to stay arbitration
05 May 2012
The Calcutta High Court on Friday refused to grant the West Bengal government's plea for an injunction on international arbitration initiated by the Chatterjee Group (TCG) on the issue of majority ownership of Haldia Petrochemicals Ltd.
The company and the West Bengal Industrial Development Corporation (WBIDC), HPL's other promoter, had moved the court this week seeking to stall the arbitration, but failed.
The high court on Friday ruled in favour of TCG saying it could ''distinguish'' outstanding disputes between it and WBIDC and that TCG could seek adjudication to resolve them.
In the absence of a stay, the state arm will now have to face the arbitration process in the International Court of Arbitration (ICA).
HPL and the WBIDC, made parties in the arbitration process by TCG, have to send their reply to the ICA, which is under the International Chamber of Commerce in Paris, by Monday unless the state or the company manages to get an injunction from a division bench earlier in the day.
The arbitration move comes after the two promoters have battled in Indian courts for six years since 2005 over the ownership issue. After fighting legal battles in Indian courts for six years since 2005, TCG recently moved the International Chamber of Commerce (ICC), Paris, seeking to resolve its dispute with the state government through arbitration.