New status quo on transferring share to its contractors

The Appellate Division of the Supreme Court on Thursday issued new status quo until May 30 this year over the demand for transferring share from the First Dhaka Elevated Expressway (FDEE) project's main contractor, the Italian-Thai Development Public Company Limited (ITD), to its co-contractors.
The apex court also asked the ITD to file a leave-to-appeal petition with it against the High Court (HC) verdict on the issue by the same date.
A full bench of the Appellate Division, headed by Chief Justice Obaidul Hassan, passed the order after hearing a petition filed by the ITD challenging the HC verdict.
Earlier on May 12 this year, in a verdict the HC vacated a status quo order issued by it earlier over the demand for transferring share from the ITD to other two contractors of the project.
The HC bench of Justice Khizir Ahmed Choudhury delivered verdict after hearing a petition filed by the ITD.
The HC bench also discharged a rule that questioned the legality of the demand placed by the two Chinese companies - the CSI and the Sinohydro Corporation Limited - which currently hold 34 and 15 percent shares in the FDEE, to transfer shares from the ITD.
The HC 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, the ITD later filed a petition with the SC challenging the HC verdict. Upon hearing the petition the apex court passed the order.
Additional Attorney General Mohammad Mehedi Hasan Chowdhury who represented the CSI on his personal capacity said the shares of ITD cannot be transferred to Chinese companies following the SC order of status quo.
He said lenders, two Chinese banks, will not finance in the construction of Dhaka Elevated Expressway until the shares of the ITD are transferred to Chinese contractors.
Barrister Imtiaz Farooq who appeared in the hearing on behalf of the ITD said his client will file a leave-to-appeal petition with the SC challenging the HC verdict.
The CSI and the Sinohydro Corporation have been instructed by the lenders to secure more shares from the Italian-Thai Development Public Company Limited, which has currently 51 per cent shares, 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 for transfer relevant amount of shares. Upon hearing the cases, the HC bench on January 29 issued a status quo.

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