Monday, February 16, 2009

Companies Act_Practical Problems_59

AB Limited is controlled by two groups headed by C and D. Differences arose between C and D in management of AB Limited and this difference landed before the Company Law Board (CLB) for adjudication. At the intervention of CLB a settlement was reached between C and D. This settlement was incorporated in the Order of the CLB. Subsequently the settlement was not implemented. C applied to CLB for enforcing the implementation of the settlement while D applied for the recall of the order of CLB. CLB refused to enforce the settlement. Is CLB right in refusing to enforce the implementation of its order?