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Madras HC stays order against top industrialists

A division bench of the Madras high court on Wednesday stayed the single judge order directing two industrialists of the Southern Petrochemical Industries Corporation, Chairman M A Chidambaram and Vice-Chairman A C Muthiah, from paying Rs 282.9 million compensation in the Tamilnadu Industrial Development Corporation case.

The case concerns the losses sustained by the Tamil Nadu government following the decision of the then chief minister J Jayalalitha's decision to renounce the rights of TIDCO in SPIC.

In a severe indictment, Justice Y Venkatachalam had on December 15 last directed the two industrialists and Jayalalitha to pay the compensation. Jayalalitha has already been given a stay order in the case.

The bench comprising Justice D Raju and Justice V Kanakaraj ordered notice to be issued to Janata Party President Dr Subramanian Swami and the state government returnable in four weeks and posted the case to January 27, 1998.

However, the bench declined to stay the single judge's directive for a Central Bureau of Investigation inquiry into the circumstances leading to the disinvestment.

EARLIER REPORTS:
SPIC top brass file plea against Madras HC order
Madras HC bench stays order against Jayalalitha
Madras HC indicts Jayalalitha, SPIC top brass

UNI