Member refuses to join CLB

New Delhi, Aug 3 | Updated: Aug 4 2005, 05:30am hrs
The much-awaited appointments of three new members on the Company Law Board (CLB) have received a setback, with K Ranghabhashyam declining to join the board. Mr Rangabhashyams refusal to join is being seen as a big jolt to the ministry of company affairs which is meeting in a day or two to discuss the future course of action. Mr Rangabhashyam retired from CBDT last month.

The company affairs ministry had zeroed in on Bimla Yadav (commissioner, income tax, Delhi); CD Paik (regional director, west), Indian Company Law Service); and K Ranghabhashyam (former member, CBDT). They were to join three regional benches in Delhi, Mumbai and Kolkata.

Ms Yadav, a1976-batch Indian Revenue Service officer, has already submitted her papers for voluntary retirement and is likely to take, at least, three months to join. In the meantime, Mr Paik has joined the Mumbai bench. The Chennai benchs sole member has been promoted as the vice-chairman.

Earlier, speculations doing the rounds in the ministry were that Ms Yadav would not give her consent as the board would cease to exist after setting up of National Company Law Tribunal, which is awaiting clearance from the Supreme Court. According to CLB sources, on account of refusal to join and the PMO failing to give extension to the existing member, the Delhi bench would remain virtually defunct with just chairman to hear the cases. This would result in hardship to litigants and increase in the number of pending cases, he said.

The posts have been lying vacant since the constitution of the board in 1991. Out of the required nine members, including chairman, the quasi-judicial body had always failed to have full strength, the maximum being six members.