Acting President and Chairperson of Tribunal or Appellate Tribunal (Sec 415 of Companies Act, 2013)

Acting President and Chairperson of Tribunal or Appellate Tribunal (Sec 415 of Companies Act, 2013)

Introduction- There are a number of quasi-judicial forums and tribunals that provide specialised judicial resolution in a wide range of business issues for companies to dispensation. The Companies Act of 2013 establishes the National Company Law TribunalAppellate Tribunal (NCLAT). The NCLT was established to consolidate all corporate-related lawsuits. The board for industrial and financial reconstruction has taken the place of the company law board. In India, NCLT has 11 branches. It is a quasi-judicial body that rules on corporate matters in India. Anyone who is dissatisfied with the NCLT's decision may file an appeal with the NCLAT. The NCLT and NCLAT have established a single point of contact for the resolution of all corporate disputes. Under the Companies Act of 2013, the NCLT and NCLAT provide a one-stop solution to almost all company disputes. The provisions relating to the National Company Law Tribunal (NCLT) and the Appellate Tribunal are addressed in Chapter XXVII (Sections 407-434) of the Companies Act, 2013. (NCLAT). Acting president and chairperson of tribunal or appellate tribunal are provided for in Section 415 of the Companies Act, 2013. The section 415 provision went into effect on June 1, 2016. We first heard about the National Company Law Tribunal [NCLT] and National Company Law Appellate Tribunal [NCLAT] more than 14 years ago. However, by MCA Notification dated 1st June, 2016, the Central Government hereby establishes the National Company Law Tribunal to exercise and discharge the powers and functions conferred on it by or under the Companies Act, 2013 (18 of 2013), with effect from the 1st day of June, 2016. The Companies (Second Amendment) Act of 2002 establishes a National Company Law Tribunal and Appellate Tribunal to replace the current Company Law Board and Board for Industrial and Financial Reconstruction. The establishment of the NCLT as a specialised institution for corporate justice is based on the Justice Eradi Committee on Law Relating to Insolvency and Winding Up of Companies' recommendations.

Need of Specialized Courts or Tribunals: The establishment of specialised tribunals can be traced back to the Supreme Court's decision in the Sampath Kumar case. In that case, the Supreme Court, while adopting the theory of alternative institutional mechanisms, referred to the fact that since independence, the population explosion and increase in litigation had greatly increased the burden of pendency in high courts. The Supreme Court also referred to studies conducted to relieve the high courts of their increased workload; the Shah committee's recommendations for the establishment of independent tribunals; and the administrative reforms commission's recommendation for the establishment of Civil Service tribunals.

MEGA TRIBUNAL: The NCLT is also known as the Mega Tribunal. Because the NCLT will CONSOLIDATE the corporate jurisdictions of the following: • Company Law Board. • The Board for Industrial and Financial Reconstruction. • The Appellate Authority for Industrial and Financial Reconstruction.

Administration of NCLT and NCLAT

Acting President and Chairperson of Tribunal or Appellate Tribunal

(1) In the event of the occurrence of any vacancy in the office of the President or the Chairperson by reason of his death, resignation or otherwise, the 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 to fill such vacancy enters upon his office.

(2) When the President or the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the 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.

Conclusion-

The National Company Law Appellate Tribunal (NCLAT) was established by the Central Government of India in accordance with Section 410 of the Companies Act, 2013. Beginning on June 1, 2016, the tribunal will hear appeals from National Company Law Tribunal(s) (NCLT) orders. The tribunal also hears appeals from Insolvency and Bankruptcy Board of India orders issued under Sections 202 and 211 of the IBC. It also hears appeals from the Competition Commission of India's directions, decisions, or orders (CCI). As of 2020, the Appellate Tribunal is chaired by Justice BansiLalBhat, who previously served as a Supreme Court of India Judge. A Chairperson, a judicial member, and a technical member comprise the NCLAT. It is made up of no more than eleven members. The benefits of establishing NCLT and NCLAT include exclusive jurisdiction, a reduction in the number of cases before courts, and the speed with which cases are heard and decisions are issued. Although this is true in theory, its practical implementation has not been entirely successful. Sec 408 specifies the President and the number of Judicial and Technical Members, while Sec 410 specifies the President and the maximum number of Judicial and Technical Members. The President will be an HC judge for 5 years, and the Chairman will be a SC judge/HC Chief Justice. Section 415(1): Vacancy in the position of chairman or president In the event of a vacancy, the senior most member shall temporarily reside in such office until the new president or chairman is appointed. Section 415(2): Chairman or president's temporary inability to function. In the event of absence, illness, or any other reason, the senior most members shall temporarily reside in such office until such president or chairman resumes office.