New Delhi: Union Cabinet on November 26 decided to set up a Company Law Tribunal (CLT) for settling disputes and working out rehabilitation and winding up packages for companies as part of efforts to tackle industrial sickness.

A proposal to set up such a tribunal, empowered to settle day-to-day disputes and other related issues of sick companies, was cleared by the Cabinet, sources said in New Delhi.

The proposed Tribunal would be a quasi-judicial body vested with powers now enjoyed by Company Law Board and Board for Industrial and Financial Reconstruction (BIFR), as also the winding up powers enjoyed by High Courts, sources said.

The tribunal would come into being after the passage of Company Law Amendment Bill, 2002 for the purpose, which the government intends to introduce soon.

Expected to comprise about 60 members, the CLT will function as several benches set up across the country to tackle disputes and cases of sickness effectively.

PTI