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Clb order valid or not?

Nikhil Mehta (NA) (244 Points)

24 February 2016

1. CIPL, a non-banking finance company, had submitted an application for approval of a scheme of arrangement under section 391 of the Companies Act, 1956 before the High Court. Soham, a deposit holder of CIPL, has filed an application before the Company Law Board (CLB) for ordering repayment of deposits. The CLB passed an order to repay the deposits under section 45QA (2) of the Reserve Bank of India Act, 1934. The CIPL challenged the order of CLB in the High Court. Offer your comments whether CLB is correct in passing such an order in the given circumstances.

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2 Replies

Sathish M (Management Accountant) (40581 Points)
Replied 24 February 2016

As the matter is before the Hon'ble High Court, it would not be appropriate to speculate the outcome of the case. Before filing the application in the Hon'ble High Court, if views were solicited it would have been fair but now the matter is sub-judice. I understand your asking for views on the orders passed by Hon'ble CLB, still you can discuss these matters with your legal counsel and I hope he or she would have given an opinion and directed you to file an appeal before the Hon'ble high Court, which you seem to have done.