SECTION 424 PROCEDURE BEFORE TRIBUNAL AND APPELLATE TRIBUNAL
Updated: Oct 18, 2022
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01. The 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) and the Appellate Tribunal (National Company Law Appellate Tribunal- NCLAT[3]) shall not be bound by the procedure laid down in the Code of Civil Procedure, 1908, in disposing of any proceeding before them or, as the case may be, an appeal before them, but shall be guided by the principles of natural justice, and shall have power to regulate, subject to the other provisions of this Act or the Insolvency and Bankruptcy Code 2016[4], and any rules made thereunder.
02. to execute their functions under this Act or the Insolvency and Bankruptcy Code, 2016, the NCLT and the NLCAT shall have the same powers as a civil court under the Code of Civil Procedure, 1908 while trying an action in respect of the following matters:
Requiring the attendance of any person and questioning him on oath;
Requiring the discovery and production of documents;
Receiving evidence on affidavits;
Requisitioning any public record or document or a copy of such paper or document from any office, subject to the provisions of sections 123 (Evidence as to affair to state)[5] and 124 (Official Communication)[6]of the Indian Evidence Act, 1872;
Issuing commissions for the examination of witnesses or documents;
Dismissing a representation for default or deciding it ex parte;
Setting aside any order dismissing a model for default or any order made by it ex parte;
Any other matter prescribed.
03. Any order made by the NCLT or the NCLAT may be enforced by that NCLT as if it were a decree issued by a court in a pending suit, and it shall be lawful for the NCLT or the NCLAT to send its orders for execution to the court within the local limits of whose jurisdiction,
The registered office of the company is located in the case of an order against the company; or
In the case of an order against any other person, the person in question freely resides, conducts business, or works for profit.
04. All proceedings before the NCLT or the NCLAT are deemed to be judicial proceedings for the purposes of sections 193 (Punishment for False Evidence)[7] and 228 (Intentional insult or interruption to public servant sitting in the judicial proceeding)[8] of the Indian Penal Code. The Tribunal and the Appellate Tribunal are deemed civil courts for Section 195[9] and Chapter XXVI[10] of the Code of Criminal Procedure, 1973.
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[11].
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[13]-
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[14].
[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] Indian Kanoon (Section 410)- https://indiankanoon.org/doc/1699332/ [4] Eleventh Schedule of the Insolvency and Bankruptcy Code- https://ca2013.com/419-benches-of-tribunal/#tab-4 [5] Indian Kanoon (Section 123 of Indian Evidence Act)- https://indiankanoon.org/doc/208203/ [6] Indian Kanoon (Section 124 of Indian Evidence Act)- https://indiankanoon.org/doc/1958937/ [7] Indian Kanoon (Section 193 of Indian Penal Code)- https://indiankanoon.org/doc/308396/ [8] Indian Kanoon (Section 228 of Indian Penal Code)- https://indiankanoon.org/doc/1969991/ [9] Indian Kanoon (Section 195 of Code of Criminal Procedure)-
https://indiankanoon.org/doc/621703/ [10] Chapter 26 of Code of Criminal Procedure- https://devgan.in/crpc/chapter_26.php [11] About Honorable President- https://nclt.gov.in/sites/default/files/ncltmember/Profile.pdf [12] Its purpose was to Shut Down, Recover, Reshape, or liquidate the sick companies, the companies which are not performing well. [13] National Company Law Tribunal- https://nclt.gov.in/national-company-law-tribunal-benches [14] SSC Online (Section 61)-