The High Court on Sunday vacated a status quo order issued earlier over the demand for transferring share from the First Dhaka Elevated Expressway (FDEE) project's main contractor, Italian-Thai Development Public Company Limited (ITD), to its co-contractors.
The High Court bench of Justice Khizir Ahmed Choudhury delivered the verdict after hearing a petition filed by ITD.
The High Court bench also discharged a rule that questioned the legality of the demand placed by the two Chinese companies, CSI and Sinohydro Corporation Limited, which currently hold 34 and 15 per cent shares in the FDEE, to transfer shares from the ITD.
The verdict cleared the way for the two Chinese companies to claim proportionate shares from the ITD as it failed to pay dues of the loan in time. However, Barrister Imtiaz Farooq who appeared in the apex court hearing on behalf of the ITD said they will appeal with the Appellate Division against the HC verdict. So they are not obliged to transfer shares right now.
On the other hand, Additional Attorney General Mohammad Mehedi Hasan Chowdhury who represented the CSI in his personal capacity said that now the ITD has to transfer its share to other contractors as it failed to pay dues of the loan in time.
If share transfer takes place, the Chinese lenders will disburse its funds for the elevated expressway project which is now stopped due to fund crisis, added the lawyer.
The CSI and Sinohydro have been instructed by the lenders to secure more shares from the ITD, which is holding 51 per cent stake, as it failed to pay dues of the loan in time.
The ITD on January 28 this year filed a case with the HC challenging the demand of two other Chinese companies to transfer relevant amounts of shares.
Upon hearing the cases, the High Court bench of Justice Khizir Ahmed Choudhury on January 29 this year issued a status quo upon the share transfer of the project. It also issued a rule regarding the issue.
Upon hearing on the rule, the High Court bench discharged it on Sunday.
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