- (1.) The only ground on which the unreasoned order of the Company Law Board is sought to be sustained is of Regulation 44 of the Company Law Board Regulations, 1991. The argument has to be rejected out of hand since a tribunal, as opposed to the representative of the sovereign as a Court, cannot confer jurisdiction on itself that the statute that brings the tribunal into existence has not afforded it.
(2.) The appeal is directed against a one - page order of the principal bench of the CLB passed on August 10, 2015 on proceedings under Sections 237, 247 and 250 of the Companies Act, 1956. The first paragraph of the order directs, rather unusually, that the balance sheets, profit and loss accounts, directors' reports and annual reports of the company be made over by the company to the petitioners before the CLB by the adjourned date. The second paragraph covers, in essence, a finding that the petitioner before the CLB was a creditor of the company and it enjoyed a charge over the assets of the company. The CLB also noticed in such paragraph that subsequent to the charge being created in favour of the petitioners before the CLB by the company, the company had sought to enter into an arrangement with a company associated with those in control of the company, by which a further charge in respect of the assets of the company were created and a sizable amount was being paid by way of lease rent.
(3.) The third paragraph of the order impugned records the contention as to the lack of authority of the CLB in making the order as asserted by the appellants herein. It also attributes a submission to the petitioner before the CLB that the bar cited on behalf of the appellants herein "does not apply for the purposes of Sections 237, 247 and 250 of the Companies Act." The operative part of the order, which follows immediately thereafter, is quoted: "In the facts and circumstances Respondent no.1 is restrained from making any payment to Respondent no.1 till the next date of hearing.";