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SECTION 421 APPEAL FROM ORDERS OF TRIBUNAL

Updated: Oct 18

#SECTION 421

#APPEAL

#45DAYS

#FORM1

#FORM2

#RULE19

#RULE20

#RULE21

#RULE22

#RULE23

#RULE24

#RULE25

#RULE26

#RULE27

#RULE28

#RULE29

#RULE30

#RULE31

#RULE32

#NATIONALCOMPANYLAWTRIBUNAL

#COMPANYLAW

#NCLT

#NATIONALCOMPANYLAWTRIBUNAL

#NCLAT

#NATIONALCOMPANYLAWAPPELLATETRIBUNAL

  1. Any person who is aggrieved by a Tribunal (National Company Law Tribunal- NCLT[1] is a quasi-judicial[2] body that is authorized to deal with the corporate disputes which are civil and arising under the Companies Act) order may file an appeal (Procedure for proceedings, Particulars to be set out in the address for service, Initialing Alteration, Presentation of request, Number of copies to be filed, Endorsement and verification, Translation of Document, Endorsement, and scrutiny of petition or appeal or document, Registration of proceedings admitted, Ex-parte amendments, Calling for records, Procedure of authorization for and on behalf of an association, Interlocutory Application, Procedure on the production of defaces, torn or damaged documents) with the Appellate Tribunal[3](National Company Law Appellate Tribunal- NCLAT[4]).

  2. An order made by the NCLT with the parties' consent is not appealable to the NCLAT.

  3. Every appeal under sub-section (1) must be lodged within 45 days of the day on which a copy of the NCLT's ruling is made available to the person aggrieved and must be filed in the form and with the fees prescribed:

Provided, however, that the Appellate Tribunal may entertain an appeal after the said period of forty-five days from the date aforesaid has expired, but within a further period of forty-five days, if the Appellate Tribunal is satisfied that the appellant was prevented from filing the appeal within that period by sufficient cause.

  1. After providing the parties to the appeal a reasonable opportunity to be heard, the Appellate Tribunal shall pass such orders as it sees fit, confirming, modifying, or setting aside the order appealed against.

  2. The Appellate Tribunal must transmit the Tribunal and the parties to the appeal a copy of every order it makes.

Any person who is aggrieved by a Tribunal order may appeal to the Appellate Tribunal. It is not possible to appeal a consent order. An appeal must be filed within 45 days of the day the aggrieved party receives a copy of the order. It must be submitted in the approved format and with the required fees. If there is sufficient cause to establish that the appellant was prohibited from filing the appeal promptly, an additional 45 days may be granted. The parties to the appeal must be given a reasonable chance to be heard. The Appellate Tribunal may then make whatever orders it sees fit, including affirming, amending, or reversing the ruling that was appealed against. A copy of every order has to be sent to parties to the appeal.


Rules for Appeal to Appellate Tribunal-

  • Rule 19 Procedure for proceedings[5]

  • Every appeal to the Appellate Tribunal must be typewritten or printed in double spacing on one side of standard paper with an inner margin of about four centimeters width on top and a right margin of 2.5 cm, and a left margin of 5 cm, duly paginated, indexed, and stitched together in paper book form, and must be fairly and legibly typewritten or printed in double spacing on one side of standard paper with an inner margin of about four centimeters width on top and a right margin of

  • The cause title must include the words "In the National Company Law Appellate Tribunal" and the court proceedings or order of the authority being appealed.

  • The appeal shall be broken into paragraphs, each of which shall be numbered sequentially and contain, as closely as possible, a single fact, accusation, or issue.

  • Where Saka or other dates are used, Gregorian calendar dates must also be provided.

  • Each party's full name, parentage, description, and address, as well as if a party sues or is sued in a representative capacity, shall be made forth at the outset of the appeal and need not be repeated in subsequent proceedings in the same appeal.

  • The names of the parties shall be numbered consecutively, with a separate line allotted to each party's name and description. These numbers shall not be changed, and in the event of a party's death during the pendency of the appeal, his legal heirs or representative, as the case may be, shall be shown by sub numbers.

  • When new parties are brought in, they may be assigned a number that corresponds to the category in which they are brought in.

  • Immediately following the cause title, every proceeding must mention the provision of law under which it is preferred.


  • Rule 20 Particulars to be set out in the address for service[6],

  • Every appeal on behalf of a party must provide an address for delivery of summons that includes, as far as feasible, the following items:-

  • The road's name, street, lane, Municipal Division or Ward, Municipal Door, another home number;

  • The town or village's name;

  • The address of the post office, the postal district, and the PIN code; and

  • Any other information needed to identify the recipient, such as a fax number, cell phone number, or e-mail address, if there is any


  • Rule 21 Initialing Alteration[7],

  • The party or his authorized representative must initial every interlineation, erasure, correction, or deletion in any appeal.


  • Rule 22 Presentation of appeal[8],

  • Every appeal must be filed in triplicate in Form Number NCLAT 01[9] with the stipulated fee at the filing counter by the appellant, petitioner, applicant, or respondent, as the case may be, in person or by his duly authorized representative duly appointed in this behalf. Non-compliance with this may constitute a valid ground for refusing to entertain the same.

  • A certified copy of the contested order must be included in every appeal.

  • All papers filed with the Appellate Tribunal must be accompanied by a triplicate index listing their contents and the fee paid.

  • A sufficient number of copies of the appeal, petition, or application shall also be filed for service on the opposite party as prescribed.

  • In the pending matters, all other applications shall be presented after serving copies thereof in advance on the opposite side or his advocate[10] or authorized representative.

  • The processing fee prescribed by the rules, with the required number of envelopes of sufficient size and notice forms as prescribed, shall be filled along with a memorandum of appeal.


  • Rule 23 Number of copies to be filed[11],

  • The appellant, petitioner, applicant, or respondent must file three authenticated copies of the appeal or counter-objection, if applicable, and deliver one copy to each opposing party.


  • Rule 24 Endorsement and verification[12],

  • The name and signature of the authorized representative shall appear at the bottom of every appeal or pleading, and every appeal or pleading shall be signed and validated by the party concerned in the manner required by these rules.


  • Rule 25 Translation of Document[13],

  • A document in a language other than English that is intended to be used in an Appellate Tribunal proceeding must be received by the Registry with a copy in English that is agreed to by both parties or certified as a true translated copy by the authorized representative engaged on behalf of the parties in the case.

  • On payment of a price set by the Chairperson, the Registrar may order translation, certification, and verification by a person designated by him for the purpose.

  • An appeal or other procedure will not be scheduled for hearing unless the parties affirm that all documents submitted on which they plan to rely are in English or have been translated into English and that the Appellate Tribunal has received the appropriate number of copies.


  • Rule 26 Endorsement and scrutiny of petition or appeal or document[14],

  • The person in charge of the filing counter shall immediately affix the date and stamp of the Appellate Tribunal on the appeal or document, as well as on the additional copies of the index, and return the acknowledgment to the party; he shall also affix his initials on the stamp affixed on the first page of the copies, and enter the particulars of all such documents in the register after daily filing and assign a diary number which shall be entered below.

  • If the appeal or document is found to be faulty after examination, it will be returned to the party for compliance, and if the party fails to comply within seven days of the date of return, it will be brought before the Registrar who will issue appropriate orders.

  • The Registrar may, for a good reason, return the abovementioned document to the party who filed it for rectification or revision and may grant the party concerned such reasonable time as he considers necessary or extend the deadline for compliance.

  • Suppose the party fails to take any action to correct the deficiency within the time allotted. In that case, the Registrar may refuse to register the appeal, petition, or document for reasons to be noted in writing.


  • Rule 27 Registration of proceedings admitted[15],

  • When an appeal is accepted, it is numbered and recorded in the proper register kept for this purpose, and its number is placed therein.


  • Rule 28 Ex-parte amendments[16],

  • Arithmetical, grammatical, clerical, and other errors may be corrected on the Registrar's orders without prior notification to the parties in any appeal or application.


  • Rule 29 Calling for records[17],

  • If the Appellate Tribunal so directs, the Registrar shall obtain from the relevant Bench of Tribunal or adjudicating body the records relating to the proceedings and retransmit them after the proceedings or at any time.


  • Rule 30 the procedure of authorization for and on behalf of an association[18],

  • When an appeal is purportedly launched by or on behalf of an association, the person who signs or confirms it must also submit a true copy of the association's resolution authorizing such person to do so for verification by the Registry:

  • Provided, however, that the Registrar may at any time require the party to present such additional documentation as he thinks necessary to satisfy himself that due authority has been obtained:

  • It must also include a list of the members for whose benefit the proceedings bring.


  • Rule 31 Interlocutory Application[19],

  • Every interlocutory application for a stay, direction, condonation of delay, exemption from the production of a copy of the order appealed against, or extension of time prayed for in pending matters must be filed in Form Number NCLAT 2[20]. The applicant must meet all of the requirements outlined in that form and file an affidavit supporting the application.


  • Rule 32 Procedure on the production of defaced, torn, or damaged documents[21]

  • When a document produced with a pleading appears to be defaced, torn, or otherwise damaged, or when its condition or appearance requires special notice, the party producing the document shall make a note of its condition and appearance in the Index of the pleading, and the officer authorized to receive the document shall verify and initial the same.


What is National Company Law Tribunal?

It is a quasi-judicial body that is authorized to deal with the corporate disputes which are civil and arising under the Companies Act.

The current President of NCLT is Chief Justice (Retd.) Ramalingam Sudhakar[22].


Functions-

  • The Tribunal will handle all Companies Act actions, including arbitration, agreements, compromises, reconstruction, and corporate wound-up.

  • Not a single civil court will have jurisdiction over the before-mentioned matters.

  • The cases which are pending before the (BIFR) Board for Industrial and Financial Reconstruction[7], as well as those pending under the Sick Industrial Companies (Special Provisions) Act, 1985, might be heard by the NCLT.

  • Also, matters pending before the Appellate Authority for Industrial and Financial Reconstruction will be taken up.

  • It can also take on matters involving corporate oppression and mismanagement.


Benches of National Law Tribunal[24]-

Locations

Jurisdiction

Principle Bench i.e., New Delhi

New Delhi

Ahmedabad Bench

Gujarat Dadra and Nagar Haveli Daman and Diu

Allahabad Bench

Uttar Pradesh

Uttarakhand

Amaravati Bench

Andhra Pradesh

Bengaluru Bench.

Karnataka

Chandigarh Bench

Himachal Pradesh

Jammu and Kashmir

Punjab

Chandigarh

Haryana

Chennai Bench

Tamil Nadu

Puducherry

Cuttack Bench

Chhattisgarh

Odisha

Guwahati Bench

Arunachal Pradesh

Assam

Manipur

Mizoram

Meghalaya

Nagaland

Sikkim

Tripura

Telangana Bench

Telangana

Indore Bench

Madhya Pradesh

Jaipur Bench

Rajasthan

Kochi Bench

Kerala

Lakshadweep

Kolkata Bench

Bihar

Jharkhand

West Bengal

Andaman and Nicobar Islands

Mumbai Bench

Goa

Maharashtra

What is National Company Law Appellate Tribunal?

It was constituted under Section 410 of the Companies Act after that; it came into effect on the 01st of July 2016. The Appellate Tribunal also hears the appeals against the orders passed by NCLT under Insolvency and Bankruptcy Code 2016, Section 61[25].

[1] Indian Kanoon (Section 408) -https://indiankanoon.org/doc/691232/ [2] A quasi-judicial body is “an organ of Government other than a Court or Legislature, which affects the rights of private parties either through adjudication or rulemaking.” [3] National Company Law Appellate Tribunal Rules 2016- https://ca2013.com/421-appeal-from-orders-of-tribunal/#tab-2 [4] Indian Kanoon (Section 410)- https://indiankanoon.org/doc/1699332/ [5] National Company Law Tribunal Rule 2016 (Rule 19)- https://ca2013.com/wp-content/uploads/2016/08/National-Company-Law-Tribunal-Rules-2016-dated-21.07.2016_1.pdf [6] National Company Law Tribunal Rule 2016 (Rule 20)- https://ca2013.com/wp-content/uploads/2016/08/National-Company-Law-Tribunal-Rules-2016-dated-21.07.2016_1.pdf [7] National Company Law Tribunal Rule 2016 (Rule 21)- https://ca2013.com/wp-content/uploads/2016/08/National-Company-Law-Tribunal-Rules-2016-dated-21.07.2016_1.pdf [8] National Company Law Tribunal Rule 2016 (Rule 22)- https://ca2013.com/wp-content/uploads/2016/08/National-Company-Law-Tribunal-Rules-2016-dated-21.07.2016_1.pdf [9] Form NLAT 01- https://nclat.nic.in/wp-content/uploads/2018/08/nclat_form_reg.pdf [10] The Guidelines for Empanelment of Advocates by the Insolvency and Bankruptcy Board of India https://ca2013.com/notifications/guidelines-empanelment-advocates-insolvency-bankruptcy-board-india/ [11] National Company Law Tribunal Rule 2016 (Rule 23)- https://ca2013.com/wp-content/uploads/2016/08/National-Company-Law-Tribunal-Rules-2016-dated-21.07.2016_1.pdf [12] National Company Law Tribunal Rule 2016 (Rule 24)- https://ca2013.com/wp-content/uploads/2016/08/National-Company-Law-Tribunal-Rules-2016-dated-21.07.2016_1.pdf