UTI has been made a respondent by the Investor Grievances Forum in its case filed before the Mumbai High Court seeking action against HLL and urging the court to direct UTI to press for compensation from HLL. Although UTI officials remained tightlipped on the Trust's next move, legal circles pointed out that UTI is expected to file a petition before the November 16 hearing in the matter. By this time, UTI has to inform the court whether it plans to file a petition in the case or not. It is learnt that UTI has received advice from attorneygeneral of India Soli Sorabjee as well as its senior counsel Goolam Vahanavati to this effect.

The division bench comprising the chief justice had come down heavily on UTI for failing to file a petition when the matter had come up before the court on September 28. The court had fallen just short of passing strictures on the Trust for failing to act on the matter considering the fact that it managed funds of the public and loss if any amounted to loss to the investors. The senior counsel of UTI was not able to give a commitment to the court on whether it would file a petition. He, however, subsequently made a "strong" recommendation to UTI saying that it should file a petition after the observations made by the court, said sources.

Sebi had ordered HLL to compensate UTI to the tune of Rs 3.04 crore. HLL went in appeal against this order to the appellate authority in the finance ministry. Simultaneously, UTI also appealed to the appellate authority seeking a higher compensation of about Rs 7 crore. Theauthority, however, while striking down the Sebi order pulled up UTI for having woken up late and sought an increase in the compensation. It had also questioned the functioning of the UTI. As a result of this, UTI decided to keep silent when Sebi went in appeal to the Mumbai high court against the appellate authority order. In the meantime the IGF filed a petition before the court seeking a directive to UTI to seek compensation from HLL and also direction to Sebi to file a petition before the court.

At the hearing on September 28, the court admitted the Sebi petition but gave UTI time till November 16 to indicate whether it was filing a petition or not. In the event of UTI filing the petition the two cases would be heard together. If UTI did not respond then the court would take a view on admitting the IGF petition.