Lok Sabha
Unstarred Question No.
848
To be Answered on Thursday
27th July, 2000/Sravana 5, 1922 (Saka)
Protection to small investors
Question
848. Shri Kirit Somaiya :
Will the Minister Law Justice
and Company affairs be pleased to state :
- Whether the Company Law Board
is overburdened with the cases.
- If so, the number of cases disposed
of during the last year and the number of cases
pending at present; and
- The remedy lies with the small
investor in case the Government does not obey
the order/scheduled order of the Company Law Board
?
Answer
The Minister of State of
(Shri Arun Jaitley) The Ministry
of Information and Broadcasting and Minister of State
of Ministry of Law Justice and company affairs
- Yes, Sir.
- During 1-4-1999 to 31-3-2000,
CLB disposed of 66926 cases and as on 1-4-2000
14403 cases were pending.
- In case of non-Banking-non-Financial
companies, whenever the order are passed under
Section 58A(9) of the Companies Act 1956, a copy
of Company Law Board (CLB) order is marked to
concerned Registration Companies (ROC) stating
therein that in case CLB order is not implemented,
necessary action may be taken by the ROC concerned
under Section 58A(10) of the Companies Act against
the said company. Similarly the case of Non-Banking
Financial Companies, CLB passes order under Section
45QA of the Reserve Bank of India (RBI) Act, 1934.
Copies of orders are also forwarded to RBI indicating
that in case company fails to implement the order,
penal action under RBI act may be taken by RBI
under Section 58B of the RBI Act. The contravention
of CLB order is punishable with imprisonment for
a term which may extent upto 3 years and also
with
