Companies Act Section 466 — Dissolution of Company Law Board and consequential provisions
CHAPTER XXIX MISCELLANEOUS
Commercial / Corporate
Summary
Sub-section (1) states that, despite anything in section 465, the Company Law Board (the Board of Company Law Administration set up under the Companies Act, 1956) will be dissolved once the Tribunal and the Appellate Tribunal are constituted.
Under the first proviso to sub-section (1), until the Tribunal and the Appellate Tribunal are actually constituted, the Chairman, Vice-Chairman and Members of the Company Law Board who were in office just before that constitution, and who meet the qualifications and requirements under this Act for appointment as President, Chairperson or Member of the Tribunal or the Appellate Tribunal, will function in those roles in the Tribunal or the Appellate Tribunal.
Under the second proviso to sub-section (1), every officer or other employee who had been appointed to the Company Law Board on deputation will, upon the dissolution, either become an officer or employee of the Tribunal or the Appellate Tribunal if they meet the qualifications and requirements under this Act, or, in any other case, be sent back to their parent cadre, Ministry or Department.
Under the third proviso to sub-section (1), every officer and other employee of the Company Law Board who was employed on a regular basis will, from the date of dissolution, become an officer or employee of the Tribunal or the Appellate Tribunal with the same rights and privileges regarding pension, gratuity and other similar benefits as they would have had if they had continued serving the Company Law Board. They will continue in this role unless and until their employment in the Tribunal or the Appellate Tribunal is properly terminated, or their remuneration, terms and conditions of employment are properly altered by the Tribunal or the Appellate Tribunal.
Under the fourth proviso to sub-section (1), despite anything in the Industrial Disputes Act, 1947 or any other law in force, any officer or other employee who becomes an officer or employee of the Tribunal or the Appellate Tribunal under the preceding proviso will not be entitled to any compensation under this Act or any other law, and no court, tribunal or other authority will entertain any such claim.
Under the fifth proviso to sub-section (1), where the Company Law Board had set up a provident fund, superannuation fund, welfare fund or other fund for the benefit of its officers and other employees, the money relating to those officers and employees who have become officers or employees of the Tribunal or the Appellate Tribunal will be transferred from the credit of such fund to, and will vest in, the Tribunal or the Appellate Tribunal, and that transferred money will be dealt with by the Tribunal or the Appellate Tribunal in the manner prescribed.
Sub-section (2) states that the persons holding the offices of Chairman, Vice-Chairman and Members, and the officers and other employees of the Company Law Board who were in office just before the constitution of the Tribunal and the Appellate Tribunal, and who are not covered under the proviso to sub-section (1), will vacate their respective offices upon that constitution. Such Chairman, Vice-Chairman, Members, officers or other employees will not be entitled to claim any compensation for the premature termination of their term of office or of any contract of service.
Official Text
(1) Notwithstanding anything contained in section 465, the Board of Company Law Administration constituted under the Companies Act, 1956 (1 of 1956) (hereafter in this section referred to as the Company Law Board) shall stand dissolved on the constitution of the Tribunal and the Appellate Tribunal:
Provided that until the Tribunal and the Appellate Tribunal is constituted, the Chairman, Vice-Chairman and Members of the Company Law Board immediately before the constitution of the Tribunal and the Appellate Tribunal, who fulfil the qualifications and requirements provided under this Act regarding appointment as President or Chairperson or Member of the Tribunal or the Appellate Tribunal, shall function as President, Chairperson or Member of the Tribunal or the Appellate Tribunal:
Provided further that every officer or other employee, who had been appointed on deputation basis to the Company Law Board, shall, on such dissolution,—
(i) become officer or employee of the Tribunal or the Appellate Tribunal, if he fulfils the qualifications and requirements under this Act; and
(ii) stand reverted to his parent cadre, Ministry or Department, in any other case:
Provided also that every officer and the other employee of the Company Law Board, employed on regular basis by that Board, shall become, on and from such dissolution the officer and other employee, respectively, of the Tribunal or the Appellate Tribunal with the same rights and privileges as to pension, gratuity and other like benefits as would have been admissible to him if he had continued to serve that Board and shall continue to do so unless and until his employment in the Tribunal or the Appellate Tribunal is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the Tribunal or the Appellate Tribunal, as the case may be:
Provided also that notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, any officer or other employee who becomes an officer or other employee of the Tribunal or the Appellate Tribunal under the preceding proviso shall not be entitled to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority:
Provided also that where the Company Law Board has established a provident fund, superannuation fund, welfare fund or other fund for the benefit of the officers and other employees employed in that Board, the monies relatable to the officers and other employees who have become officers or employees of the Tribunal or the Appellate Tribunal shall, out of the monies standing to the credit of such provident fund, superannuation fund, welfare fund or other fund, stand transferred to, and vest in, the Tribunal or the Appellate Tribunal, as the case may be, and such monies which stand so transferred shall be dealt with by the Tribunal or the Appellate Tribunal in such manner as may be prescribed.
(2) The persons holding the offices of Chairman, Vice-Chairman and Members, and officers and other employees of the Company Law Board immediately before the constitution of the Tribunal and the Appellate Tribunal who are not covered under proviso to sub-section(1) shall vacate their respective offices on such constitution and no such Chairman, Vice-Chairman and Members and officers or other employees shall be entitled to claim any compensation for the premature termination of the term of his office or of any contract of service, if any.