The Hindu Business Line : CLB chairman, member term extended

THE period of uncertainty over the fate of the Company Law Board (CLB) seems to have ended with the Government extending the terms of its Chairman and a member for a period of six months.

The board, which has been functioning as an independent quasi-judicial body, was left with a lone member, Mr K.K. Balu.

The officiating Chairman of the CLB, Mr S. Balasubramanian's, term expired on November 3 and that of Mr K.C. Ganjwal on November 28. In fact, though it has a sanctioned strength of nine members, the constitution of CLB as on March 31, 2004 has been of three members, with Mr S. Balasubramanian officiating as Chairman.

In its report the Standing Committee on Finance had expressed concern that only three members were managing the affairs of the CLB. The Ministry of Company Affairs in its submissions before the committee had stated that the Companies (Second Amendment) Act, 2002, envisages the establishment of National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), following which the functions of CLB will be transferred to the Tribunals. However, the NCLT and NCLAT are yet to be constituted due to stay granted by the Madras High Court.

The Regional Benches of the CLB in July 2004 passed orders regarding payment of deposits to a total of 40 applicants under the relevant Sections of the Companies Act, 1956 and the Reserve Bank of India Act, 1934. Under other Sections of the Companies Act, the board has disposed of 440 applications.

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