Sec 412 of the Companies Act, 2013: Selection of members of Tribunal and Appellate Tribunal
NCLT was constituted under section 408 of the COmpanies Act, 2013. NCLT is a quasi-judicial authority incorporated for dealing with corporate disputes that are of civil nature arising under the Companies Act. National Company Law Appellate Tribunal (NCLAT) was constituted under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of National Company Law Tribunal(s) (NCLT), The setting up of NCLT and NCLAT are part of the efforts to move to a regime of faster resolution of corporate disputes, thus improving the ease of doing business in India.
Section 412 of the companies act, 2013 explains about the selection of members of Tribunal and Appellate Tribunal for discharging its functions:-
The President of the Tribunal and the chairperson and Judicial Members of the Appellate Tribunal, shall be appointed after consultation with the Chief Justice of India.
The Members of the Tribunal and the Technical Members of the Appellate Tribunal shall be appointed on the recommendation of a Selection Committee consisting of—
Chief Justice of India or his nominee—Chairperson;
a senior Judge of the Supreme Court or a Chief Justice of High Court— Member;
Secretary in the Ministry of Corporate Affairs—Member;
Secretary in the Ministry of Law and Justice—Member; and
Secretary in the Department of Financial Services in the Ministry of Finance— Member.
The Secretary, Ministry of Corporate Affairs shall be the Convener of the Selection Committee.
The Selection Committee shall determine its procedure for recommending persons mentioned in the above list.
No appointment of the Members of the Tribunal or the Appellate Tribunal shall be invalid merely by reason of any vacancy or any defect in the constitution of the Selection Committee.