Report No. 143
No. 1 /91/Misc/CLBS.
Government of India,
Ministry of Industry,
Department of Company Affairs,
Company Law Board,
Dear Justice Thakkar,
Please refer to your letter No. 5/LC(CH) dated 19-4-91 regarding exercise of suo motu powers under section 58A(9) of the Companies Act, 1956, in the matter of 1,312 depositors of M/s. Ambalal Sarabhai Enterprises Limited, Wadi, Vadodara, Baroda.
2. As you might be aware, the provisions of section 58A(9) of the Act have been brought into force with effect from 1-9-89. Since then, the four Regional Benches of the Company Law Board, at Bombay, Calcutta, Madras and New Delhi, have been receiving a spate of applications from the depositors against a number of companies who have not repaid their deposits after the due date of maturity.
During the year ending 31-3-91, a total number of 15,900 applications (which include 3,727 applications brought forward them from the previous years) were received under section 58A(9) of the Act as many as 9,947 applications were disposed of during the said period, leaving a balance of 5,953 applications pending for disposal. The Company Law Board does not have its full complement of Members. As against one Chairman and 6 Members, myself as Chairman and Shri A.M. Chakraborti as Member are in position.
Besides Shri Y.A. Rao, Joint Secretary in the Department of Company Affairs is also assisting the Board as ex-officio Member, as per provisions of section 10E, as amended by Companies Amendment Act, 1988, the Independent Company Law Board with full complement of Members is yet to be constituted. In view of the position, the CLB is not able to cope up with the work in respect of pending applications made by depositors on the prescribed application forms alongwith application fee of Rs. 50, and it would be difficult for this Board at this stage, to take up suo motu cases.
However, as suggested by you, the representatives of the Company are being called for a hearing by me at the Regional Bench of the Company Law Board, Western Region, NTC House, 2nd Floor, 15, N.M. Marg, Ballard Estate, Bombay on 16-5-1991 at 10.15 A.M. for appropriate action, and a copy of the notice sent is enclosed for information.
Encl.: As above.
Justice M.P. Thakkar,