COMPANIES ACT’13
CHAPTER XXVII
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NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE TRIBUNAL
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Section Particulars
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407. Definitions.
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a) “Chairperson” means the Chairperson of the Appellate Tribunal;
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b) “President” means the President of the Tribunal;
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c) “Member” means a member, whether Judicial or Technical of the Tribunal or the Appellate Tribunal and
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includes the President or the Chairperson, as the case may be;
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d) “Judicial Member” means a member of the Tribunal or the Appellate Tribunal appointed as such and
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includes the President or the Chairperson, as the case may be;
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e) “Technical Member” means a member of the Tribunal or the Appellate Tribunal appointed as such.
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408. Constitution of National Company Law Tribunal.
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2)
CG to constitute Tribunal to known as - National Company Law Tribunal
• Consisting of a President and such number of Judicial and Technical members, as the Central
Government may deem necessary, to be appointed by it.
409. Qualification of President and Members of Tribunal.
[Link]. Post Eligibility
1. President Judge of a High Court for 5 years.
2. Judicial Member i. is, or has been, a judge of a High Court; or
ii. is, or has been, a District Judge for at least 5 years;
or
iii. has, for at least 10 years been an advocate of a
court.
3. Technical member i. has, for at least 15 years been a member of the
Indian Corporate Law Service or Indian Legal Service
and has been holding the rank of Secretary or
Additional Secretary to the Government of India;or
ii. is, or has been, in practice as a chartered accountant
for at least 15 years; or
iii. is, or has been, in practice as a cost accountant for
at least 15 years; or
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Chartered Accountant
iv. is, or has been, in practice as a company secretary
for at least 15 years; or
v. is a person of proven ability, integrity and standing
having special knowledge and professional
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experience of not less than 15 years in industrial
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finance, industrial management, industrial
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reconstruction, investment and accountancy
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vi. is, or has been, for at least 5 years, a presiding
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officer of a Labour Court, Tribunal or National
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Tribunal constituted under the Industrial Disputes
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Act, 1947.
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410. Constitution of Appellate Tribunal.
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CG to constitute Appellate Tribunal to known as - National Company Law Appellate Tribunal
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• Consisting of a chairperson and such number of Judicial and Technical Members, as the Central
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Government may deem fit, to be appointed by it.
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411. Qualifications of Chairperson and Members of Appellate Tribunal.
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2)
[Link]. Post Eligibility
1. Chairperson Judge of the Supreme Court OR the Chief Justice of a High
Court.
2. Judicial Member i. who is or has been a Judge of a High Court
ii. is a Judicial Member of the Tribunal for 5 years.
3. Technical member i. A technical member shall be a person of proven
ability, integrity and standing having special
knowledge and professional experience of not less
than 25 years in industrial finance, industrial
management, industrial reconstruction, investment
and accountancy
412. Selection of Members of Tribunal and Appellate Tribunal.
[Link]. Post Selection
1. i. President of the Tribunal shall be appointed after consultation with the
ii. Chairperson and Chief Justice of India.
iii. Judicial Members of the
Appellate Tribunal,
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Chartered Accountant
2. i. Members of the Tribunal and appointed on the recommendation of a
ii. Technical Members of the Selection Committee.
Appellate Tribunal
Selection committee shall consist of –
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a) Chief Justice of India or his nominee—
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Chairperson
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b) a senior Judge of the Supreme Court or a
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Chief Justice of High Court— Member
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c) Secretary in the Ministry of Corporate
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Affairs—Member
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d) Secretary in the Ministry of Law and
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Justice—Member
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Note –
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1) Where in a meeting of the Selection
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Committee, there is equality of votes on
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any matter, the Chairperson shall have
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a casting vote.
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2) The Secretary, Ministry of Corporate
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Affairs shall be the Convener of the
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Selection Committee.
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3) No appointment of the Members of the
2)
Tribunal or the Appellate Tribunal shall
be invalid merely by reason of any
vacancy or any defect in the
constitution of the Selection
Committee.
413. Term of Office of President, Chairperson and Other Members.
[Link]. Designation Term
1. i. President and 5 years and
ii. Other Member of the shall be eligible for re-appointment for another term of
Tribunal 5 years
2. Members of the Tribunal shall hold office as such until he attains
Designation Attains age of
President 67 years
Other member 65 years
A person who has not completed 50 years of age shall
not be eligible for appointment as Member:
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Chartered Accountant
3. chairperson or a Member of 5 years and
the Appellate Tribunal shall be eligible for re-appointment for another term of
5 years
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4. A Member of the Appellate shall hold office as such until he attains,—
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Tribunal
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Designation Attains age of
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Chairperson 70 years
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Other member 67 years
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A person who has not completed 50 years of age shall
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not be eligible for appointment as Member:
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414. Salary, Allowances and Other Terms and Conditions of Service of Members.
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CG will prescribe.
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415. Acting President and Chairperson of Tribunal or Appellate Tribunal
2)
Vacancy - senior-most Member shall act as the President or the Chairperson, as the case may be, until the date
on which a new President or Chairperson appointed in accordance with the provisions of this Act
Absence - senior-most Member shall discharge the functions of the President or the Chairperson, as the case
may be, until the date on which the President or the Chairperson resumes his duties.
416. Resignation Members.
• President, the Chairperson or any Member may, by notice in writing under his hand addressed to the Central
Government, resign from his office:
• President, the Chairperson, or the Member shall continue to hold office until the expiry of 3 months from
the date of receipt of such notice by the Central Government or until a person duly appointed as his
successor enters upon his office or until the expiry of his term of office, whichever is earliest.
417. Removal Members.
• Central Government may, after consultation with the Chief Justice of India, remove from office the
President, Chairperson or any Member, who
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Chartered Accountant
a) has been adjudged an insolvent; or
b) has been convicted of an offence which, in the opinion of the Central Government, involves moral
turpitude; or
c) has become physically or mentally incapable of acting as such President, the Chairperson, or
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Member; or
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d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such
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President, the Chairperson or Member; or
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e) has so abused his position as to render his continuance in office prejudicial to the public interest:
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f) Provided that the President, the Chairperson or the Member shall not be removed on any of the
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grounds specified in clauses (b) to (e) without giving him a reasonable opportunity of being heard.
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the President, the Chairperson or the Member SHALL NOT be removed from his office except by an order
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made by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made
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by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the
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Central Government in which such President, the Chairperson or Member had been informed of the charges
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against him and given a reasonable opportunity of being heard.
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The Central Government may, with the concurrence of the Chief Justice of India, SUSPEND from office, the
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President, the Chairperson or Member in respect of whom reference has been made to the Judge of the
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Supreme Court under sub-section (2) until the Central Government has passed orders on receipt of the
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report of the Judge of the Supreme Court on such reference.
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2)
417A. Qualifications, terms and conditions of service of Chairperson and Member.
418. Staff of Tribunal and Appellate Tribunal
418A. Benches of Appellate Tribunal
419. Benches of Tribunal
420. Orders of Tribunal.
1. The Tribunal may, after giving the parties to any proceeding before it, a reasonable opportunity of being
heard, pass such orders thereon as it thinks fit.
2. The Tribunal may, at any time within 2 years from the date of the order, with a view to rectifying any mistake
apparent from the record, amend any order passed by it, and shall make such amendment, if the mistake is
brought to its notice by the parties:
3. The Tribunal shall send a copy of every order passed under this section to all the parties concerned.
421. Appeal from Orders of Tribunal.
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Chartered Accountant
1. Any person aggrieved by an order of the Tribunal may prefer an appeal to the Appellate Tribunal.
2. No appeal shall lie to the Appellate Tribunal from an order made by the Tribunal with the consent of
parties.
3. Appeal shall be filed within a period of 45 days from the date on which a copy of the order of the
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Tribunal is made available to the person aggrieved.
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• Appellate Tribunal may entertain an appeal after the expiry of the said period of 45 days from
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the date aforesaid, but within a further period not exceeding 45 days, if it is satisfied that the
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appellant was prevented by sufficient cause from filing the appeal within that period.
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4. The Appellate Tribunal shall, after giving the parties to the appeal a reasonable opportunity of being
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heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed
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against.
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422. Expeditious Disposal by Tribunal and Appellate Tribunal.
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1. Every application or petition presented before the Tribunal and every appeal filed before the Appellate
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Tribunal shall be dealt with and disposed of by it as expeditiously as possible and every endeavour shall be
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made by the Tribunal or the Appellate Tribunal, as the case may be, for the disposal of such application or
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petition or appeal within three months from the date of its presentation before the Tribunal or the filing of
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the appeal before the Appellate Tribunal.
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2. application or petition or appeal is not disposed of within the period specified above - record the reasons for
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not disposing of the application - the President or the Chairperson extend the period referred to in sub-
2)
section (1) by such period not exceeding 90 days as he may consider necessary.
423. Appeal to Supreme Court.
Any person aggrieved by any order of the Appellate Tribunal may file an appeal to the Supreme Court within 60
days from the date of receipt of the order of the Appellate Tribunal to him on any question of law arising out of
such order:
Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from
filing the appeal within the said period, allow it to be filed within a further period not exceeding 60 days.
Prepared by: Raman Luthra
Chartered Accountant