The government has finally turned its attention to reducing the huge pendency of cases in the High Courts by deciding to appoint judges on contract. However, the situation at the Company Law Board (CLB), which resolves business family-related litigations, has progressively worsened. At present, the CLB functions without a chairperson and has just two members against a sanctioned strength of nine.

As on March 31, 2009, the number of cases pending in the CLB stood at 2,870. Of these, according to sources in the CLB, around 700 cases are serious cases pertaining to oppression and mismanagement in companies. The amount involved in the cases pending with the board runs into thousands of crores of rupees, sources said.

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.

... contd.