• Shubham Mishra

Section 425 of the Companies Act, 2013: Power to Punish for Contempt

Updated: Oct 18

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Introduction

Contempt jurisdiction, as we all know, is an extraordinary power that ordinary courts/Tribunals cannot exercise unless it is expressly granted. As a result, tribunals, unlike constitutional courts, require sufficient legislation in order to proceed with contempt proceedings.


Enactment

Section 425 will take effect on June 1, 2016, as announced in Notification No. S.O. 1934(E) dated June 1, 2016.


Provisions of Section 425 of the Companies Act, 2013:

The Tribunal and the Appellate Tribunal shall have the same jurisdiction, powers, and authority in relation to contempt of themselves as the High Court and may exercise the powers provided in the Contempt of Courts Act, 1971, subject to the following modifications—

(a) any reference to the High Court includes the Tribunal and the Appellate Tribunal; and

(b) In section 15 of the said Act, the reference to Advocate-General must be construed as a reference to such Law Officers as the Central Government may specify.


Contempt of court meaning

Contempt is the state of being despised or dishonored. Contempt of court is defined as any behavior that disrespects or disregards the authority and administration of the law or interferes with or prejudices parties or witnesses during litigation.


Quantum of punishment in case of Contempt of court

Contempt of court can be punished by simple imprisonment for up to six months, a fine of up to two thousand rupees, or both, and it is covered under section 12 of the Contempt of Courts Act, 1971.



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