PROVISIONS OF THE CLB REGULATIONS,
Ø The Bench consists of
a Chairman, who in turn has the power to decide on the number of members and
the matters to be heard in the Principal/Regional Benches.
Ø The Annexures to the
Act specify the geographical jurisdiction of the Regional Benches, and the
language and sitting hours of the Bench.
Ø The Regulations
mandate that every petition must be in writing, also prescribes the format.
Ø The petition has to be
made on the Form annexed with the Regulation, and must be presented at the
Bench. A copy has to be sent to the respondents as well, before being submitted
to the Bench.
Ø The petition must be
accompanied by an Affidavit as per the provisions, and if all documents are in
order and without defect, the same would be accepted by the Registrar at the
Office. In case of defect, a chance to rectify may be given to the applicant.
Ø The petition must
contain details of the company such as the name of the company, date of
incorporation, address of its registered office, authorized capital, details of
shares, etc. and must state in details the grounds for the petition, and the
Ø If an interlocutory
application is filed, it has to be in Form II of Annexure II of the Regulations.
Ø The application must
be accompanied with an index page, a brief synopsis and a brief of date of
Ø The party may appear
in person or through an authorized representative or lawyer. The Regulations
stipulate in detail, the manner of serving notice to the other party.
Ø The Respondents must
file a reply to the Bench, indicating the admission, denial or explanation of
the plaintiff’s averments. The petitioner may file a counter reply to the facts
stated by the respondent. The Bench may also seek further information from
either of the parties.
Ø The Regulations detail
that the Petition may be dismissed/ decided ex parte if either party fail to
appear on the designated date; and also that such Order may be set aside if the
defaulting party shows sufficient cause before the Bench within the given time.
Ø The Order of the Bench
is to be in writing, and the decision must be based on majority of opinion.
Ø The Secretary is the
principal officer of the Board, and has powers such as custody of the records
of the Principal Bench, custody of the Official seal of the Board, right to
collect information, etc.
Ø The Bench Officer also has powers and duties
like receiving petitions and applications, dispose matters relating to service
of notices, etc.
Ø The Bench is deemed to
be a Court for the purposes of prosecution and punishment for wilful
disobedience of Orders.
THE CURRENT POSITION
The Ministry of Corporate Affairs has replaced the
CLB with the NCLT and NCLAT with effect from 1-6-2016, under the new Companies Act of 2013. 11 (eleven)
Benches of the NCLT have been constituted by the Central Government, two in New
Delhi, and one each at Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai,
Guwahati, Hyderabad, Kolkata and Mumbai. The NCLT and the NCLAT are bound by
their own Rules and Regulations.
STATUTORY REFERENCES (INDIAN KANOON)
Ø Companies Act, 1956
Ø Companies Act, 2013