SECTION 420 ORDERS OF TRIBUNAL
Updated: Oct 17, 2022
The Tribunal (National Company Law Tribunal- NCLT is a quasi-judicial body that is authorized to deal with the corporate disputes which are civil and arising under the Companies Act) may make such rules (Matters relating to the judgment or orders of the Tribunal, Amicus Curiae and Recusal) as it sees fit after providing the parties to any case before a reasonable opportunity to be heard.
The NCLT may, within two years of the date of the order, amend any order it has made to correct any mistake apparent from the record and shall do so if the mistake is brought to its attention by the parties:
However, no such amendment shall be made in respect of any order against which an appeal has been filed under this Act.
Every order issued by the NCLT under this section must be sent to all parties involved.
Rules for such orders-
Rule 60 Matters relating to the judgment or orders of the Tribunal
Once the final text of the judgment has been approved and adopted, the judgment shall be signed and dated by the President of the concerned Members or Member and the Registrar and shall contain the names of the Members who have taken part in the decision.
Any Member differing as to the grounds upon which the judgment was based or some of its conclusions, or dissenting from the judgment, may append a separate or dissenting opinion.
In case the members who have heard the case are equally divided in passing the order or judgment, then the President shall constitute a Bench as referred to in sub-section (5) of section 419 of the Act.
Rule 61 Amicus Curiae
The Tribunal may, at its discretion, permit any person or persons, including the professionals and professional bodies, to render or to communicate views to the Tribunal as amicus curiae on any point or points or legal issues as the case may be as assigned to such amicus curiae.
The Tribunal may permit amicus curiae to have access to the pleadings of the parties, and the Tribunal shall enable the parties to submit timely observations on brief the provided by the amicus curiae.
The Tribunal has the authority to order one or both parties to the proceedings regarding a point on which the amicus curiae's opinion is sought to bear such expenditures or fees as the Tribunal deems appropriate.
The parties and Io amicus curiae will receive the judgement and any accompanying opinions.
Rule 62 Recusal
The President or a Member of the Tribunal must disqualify himself to maintain the Tribunal's high standards and integrity: –
in any cases involving people with whom the President or the Member has or has had a personal, familial, or professional relationship; in any cases in which the President or the Member has previously been called upon in another capacity, such as as an advisor, representative, expert, or witness; or in any other cases in which the President or the Member's participation appears to be inappropriate.
The President or any Member who recuses himself may keep a record of the following reasons:
However, neither the parties to the proceedings nor any other person has a right to know the reasons for the President's or Member's recusal.
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.
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, 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-
Principle Bench i.e., New Delhi
Gujarat Dadra and Nagar Haveli Daman and Diu
Jammu and Kashmir