Calcutta High Court ruled that as per the subsequent agreements, courts at Kolkata have jurisdiction over disputes and TCG could not go for arbitration on transfer of 155 million shares of Haldia Petrochemicals
Kolkata: The Calcutta High Court directed that The Chatterjee Group (TCG) could not go for arbitration on transfer of 155 million shares of Haldia Petrochemicals Ltd (HPL), where it is embroiled in a tussle over controlling stake of the ailing company with the Government of West Bengal, reports PTI.
Justice IP Mukerji ruled that the arbitration agreement relied on by TCG stood suppressed by subsequent agreements.
The court ruled that as per the subsequent agreements, courts at Kolkata have jurisdiction over disputes.
"This effectively means that no arbitration can be held as is being sought by TCG," said senior counsel Sanjay Ginodia, who represented West Bengal Industrial Development Corporation (WBIDC), a wholly-owned subsidiary of the state government.
A division bench of the high court had in May restrained Chatterjee Petrochem (Mauritus) Company Ltd (CPMCL), a TCG group company, by an order of injunction from acting upon its request of adjudication at the International Chamber of Commerce's Court of Arbitration in Paris.
The bench had also directed that the trial court of Justice IP Mukerji would hear the main petition filed by Haldia Petrochemicals Ltd against CPMCL's plea for arbitration by 10th July.
Earlier, the trial court of Justice IP Mukerji had on 4th May declined to pass an interim order on a petition by Haldia Petrochemicals Ltd seeking stay on CPMCL's move to approach the International Chamber of Commerce for resolution of the issue of transfer of 155 million shares.
HPL had moved the division bench challenging the order.
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