 New Delhi: In its bid to institute a strong company law tribunal, the Ministry of Corporate Affairs (MCA) has begun the process to appoint three more members to the Company Law Board to strengthen the quasi-judicial body.
CLB has been running short of staff for around five years and has at least 2,500 pending cases related to various aspects of company law.
Once the Companies Bill, 2011, to be passed by Parliament, is enacted, MCA will constitute a National Company Law Tribunal (NCLT) that will not only replace CLB, but also handle cases currently with the high courts, the Board for Industrial and Financial Reconstruction (BIFR) and the Appellate Authority for Industrial and Financial Reconstruction. It will have 62 members and 22 benches.
Issues related to mergers and acquisitions, reduction in capital, and winding up of companies are currently handled by high courts and cases of revival and rehabilitation by BIFR. All these will be transferred to NCLT.
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