The government has decided to strengthen the depleted Company Law Board by filling up two vacancies. At present, CLB has three members against the sanctioned strength of nine.
In a letter to the Chief Justice of India Justice RC Lahoti, the government has requested him to select suitable persons for the positions. The government wants to fill up the vacancies at Mumbai and Kolkata as the two major centres do not have a board member, said a government official.
The move comes as setting up of the National Company Law Tribunal has taken more time than anticipated. Moreover, as the matter is currently with the Supreme court, it is not clear when the NCLT will be formed.
Last week, the government had filed a fresh affidavit before the apex court in a hope that an interim order would allow the government to set up the NCLT.
The government has been neglecting the filling up of vacancies as CLB was to be eventually be taken over by the NCLT. The present move is to ensure that all the major centres have a Bench consisting of a board member.
After the Chief Justice or his nominee selects the board members, the pending cases in the western and the eastern region can be taken up, said the official.
With 2,181 cases pending before the CLB in April, the movement in cases has been slow due to the non-availability of members.
The standing committee of the Parliament on finance had in August expressed concern that the CLB has been functioning at one third of its strength since last year. It had directed that till the stay on setting up of the NCLT is vacated, the government should take steps to fill the vacant posts in the CLB.
The current chairman S Balasubramanium and another member KK Ganjwal had both retired in November leaving the CLB with only KK Balu at the southern bench. The government had then rushed to secure a six-month extension for both of them.
