CLB orders status quo on UCPMA assets

LUDHIANA: In a significant development in the ongoing tussle between the governing body of United Cycle and Parts Manufacturers Association (UCPMA) and its members, the Company Law Board (CLB), New Delhi has ordered status quo with regard to assets of the association.
This means that the working of the association will be monitored by CLB until a decision is taken on the petition filed by opposing members.The decision came after some of the members, including former general secretary Varinder Kapoor, Harinder Pal Singh Deol and Rana Basnal filed a petition in the CLB against the new UCPMA body, alleging rigged elections.
Although the CLB, in its order dated December 9, did not order disqualification of any office-bearer or dissolution of the existing committee, legal experts said this spells trouble for the existing committee, which will no longer be able to take major decisions without the consent of the CLB. This includes choosing new office-bearers, creating new posts or making huge expenditure. The present body was contemplating the appointment of a general house committee, which would have included members nominated by the office- bearers, but the orders of the CLB have cast a shadow over this.
Interestingly, no one from the respondents (UCPMA's present body) appeared before the CLB on December 8 when the case came up for hearing. The next hearing is scheduled for February 1, 2016. Describing this as the beginning of the end of the anarchy in UCPMA, Varinder Kapoor, Harinder Pal Singh Deol and Rana Bansal said, "This decision comes as a victory for us in the fight against the mighty and greedy who came to power after fooling 2,500 members and ruining the reputation of the UCPMA. All association members have full faith in the judiciary and we hope the decision of dissolving the present body will be taken soon."