Section 432 of Companies Act, 2013 - Right to legal representation

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Section 432 of the Companies Act, 2013 confers the right to legal representation on a party to a proceeding or appeal before the Tribunal or the Appellate Tribunal. The party may appear in person or appoint one or more chartered accountants, company secretaries, cost accountants, legal practitioners, or any other person to represent him before the Tribunal or the Appellate Tribunal, as the case may be.

It is essential to understand whom a party can authorize to represent them in the Tribunal or Appellate Tribunal. According to the Section, the following people can be authorized representatives of the party:

1. A Chartered Accountant is one as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949, holding a valid certificate of practice under the same Act.

2. Company Secretary, as defined under clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 appointed by a company to perform the functions of a company secretary under the Act.

3. Cost Accountant as defined under clause (b) of subsection (1) of section 2 of the Cost and Works Accountants Act, 1959.

4. Legal Practitioner authorized to represent the party.

Rule 45 of the National Company Law Tribunal (NCLT) Rules, 2016 and Rule 63 of National Company Law Appellate Tribunal Rules, 2016, as amended by National Company Law Appellate Tribunal (Amendment) Rules, 2017, lay down some rules regarding Section 432. It deals with the procedure to follow when appointing an authorized representative, authorities given the power to decide the same, and the rank of such appointed representative.