CLB has just 2 members to hear 2,000 cases

S Balasubramaniam,the last chairperson of the CLB,retired in October. Though a chairperson has been shortlisted,the Appointment Committee of the Cabinet is yet to clear his candidature. “It will take four-five weeks,” said a government official. With the death of a member in Mumbai,the CLB is now left with just two members — one each in Delhi and Chennai.

Sources said the two remaining members are expected to shuttle between the other two metros — Mumbai and Kolkata — for four days a month to attend to proceedings there. But,sources say,this is extremely difficult and rather untenable,even if it is just for a few months. “In the last several years,we never had a full board. The workload has increased significantly during the period,so much so that even with full strength — one chairperson and eight members — the CLB will find it tough to manage,” the sources said.

The government has selected three more members from state judiciaries,but their appointments too have not been cleared. Further,sources said,these members will take some time to get acquainted with the Companies Act. So movement on corporate cases is likely to be at a snail’s pace for at least the next four-five months,they said.

The CLB is also facing a shortage of support staff. A mere 30-35 people are working across the four regional benches and this needs to be doubled,CLB sources said. Recently,Balasubramaniam had said,“Athough we have selected new members to join,if the membership does not go up,it will be a big problem. If there is a shortage of members,the CLB could collapse.”

The CLB has benches in New Delhi,Kolkata,Chennai and Mumbai,as well as an additional principal bench and a principal bench in Chennai and New Delhi,respectively. Though a stop-gap arrangement has been made,it will be practically impossible for two members to run the entire board,a CLB official said.

G R Bhatia,partner at law firm Luthra and Luthra,said that every effort should be made to expedite the procedure of appointing members and chairperson,or the redressal of complaints of the corporate sector would be highly affected.

“The corporate sector is highly sensitive. As per the cause list,317 cases are pending with the principle bench itself. Unless the board is fully functional,it will be difficult to dispose off the rising number of cases.”

Given that the implementation of the proposed National Company Law Tribunal is likely to take some more time,expediting CLB appointments becomes even more important. NCLT proposes to take over the functions of the CLB,Board for Industrial & Financial Reconstruction,the Appellate Authority for Industrial and Financial Reconstruction as well as by High Courts in winding up companies.