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Posted on Dec 08, 12:08PM | UNI
The Delhi High Court today granted four weeks time to UK-based 'The Children's Investment Fund'(TCIF), a shareholder in Coal India Ltd (CIL) to respond to the reply of Government of India opposing the hedge-fund management's plea that the Centre was interfering with the pricing of coal.
Justice Rajiv Shakhdar allowed the petitioner(TCIS) to file the rejoinder in response to the ministry of coal's reply within 4 weeks and listed the matter for further hearing on May 9, 2013.
TCIS had moved the HC alleging that the Ministry of Coal has not been allowing the PSU, CIL to function independently as a company and the interference on coal pricing has been detrimental to commercial interests of the hedge-fund management.
TCIS has simultaneously moved the Calcutta High Court in October last alleging that the directors failed to perform their duties with adequate care leading to substantial financial loss to the PSU.
Due to the the wrong decisions of the directors to reverse a price increase made in December 31, 2011, failing to raise coal price to market levels and failing to take steps to increase and streamline production, the losses were incurred paving way to allocation of coal blocks to third parties, the petitioner said.
The petition filed in Calcutta HC further alleged that the directors failed to take an appropriate stand against the draft mining bill and took no action to stop theft of coal.
The petition of TCIS against the directors will come up for hearing in the Calcutta High Court on December 12 and has also stated that in the current fiscal year CIL will have loss of Rs 215,250 crores in pre-tax profits in current fiscal year.
The Matter will come up for hearing in Delhi High Court on May 9 next year.