1994 (8) TMI 181

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....aw Board was constituted, has served its purpose well on framing of the Company Law Board (Qualifi-cations, Experience and other Conditions of Service of Members) Rules, 1993, which were published in the Extraordinary Gazette of the Govern-ment of India, dated 28-4-1993, followed by amendment of these rules by notification dated 3-6-1994, which, inter alia, substituted a new rule 8 in place of original rule 8. We have said so because the provisions of the Act assailed, namely, sections 4,5, 16,21 and 27 of the Act do not suffer from any constitutional infirmity. The challenge to the aforesaid sections has, however, been on the ground of legislative incompetence as well as lack of valid classification in having conferred the power visualised....

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.... this argument too has not appealed to us, because, even according to Shri Satish Chandra, the power of winding up conferred by section 443 of the principal Act, which still rests with the High Court, is more drastic. The submission by the learned Additional Solicitor-General, Shri Ahmed, has, therefore, more merit-the same being that as the winding up power has more serious consequences the same has been retained with the High Court while clothing the Board with a less drastic power visualised by section 397. This difference does provide a good ground of distinction, according to us. We are, therefore, not impressed with the argument of lack of intelligible and acceptable differentia in having two fora for the aforesaid two purposes. 4.....

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....y providing sittings of the Benches in the four metropolitan cities of the country in which a very large percentage of important companies have their registered offices. The minority, therefore, need not feel neglected, not to speak of being stifled or suppressed. 5. The only other argument of Shri Satish Chandra which needs mention is that the Parliament itself had once made an experiment with establishment of such a Board earlier by enacting the Amendment Act 1963, which experiment did not succeed because of which the Board came to be abolished in 1967. The failure of the experiment may not be treated as sufficient by the Parliament not to try again. In any case, this is a question relatable to the wisdom of Parliament which is not ame....