NATIONAL COMPANY LAW TRIBUNAL AND NATIONAL COMPANY LAW

APPELLATE TRIBUNAL

NATIONAL COMPANY LAW TRIBUNAL AND NATIONAL COMPANY LAW

APPELLATE TRIBUNAL

CMA N P Viswanathan

GENESIS OF NATIONAL C

�It all started way back inCommittee, constituted1999 headed by Justiceretired Judge of the Supremesubmitted its report recommending,submitted its report recommending,setting up of a National(NCLT in short) to be vestedand power with regard toof sick industrial companies,with BIFR, AAIFR under

L COMPANY LAW TRIBUNA

in 1999 when Justice Eradiby the Govt of India in

Justice V. Balakrishna Eradi, aSupreme Court of India,recommending, inter alia,recommending, inter alia,

National Company Law Tribunalvested with the functionsto rehabilitation and revival

companies, a mandate presentlySICA.

ARGUMENTS FAVOURING TRIBUNALISATION�The courts function underprocedural laws and highlyTo ensure fair play anderror, the procedural lawsrevisions and reviews, andinnumerable applicationsinnumerable applicationsobjections as a result ofget pushed to the backgroundcourts get inevitablyfrustration and dissatisfaction

ARGUMENTS FAVOURING TRIBUNALISATIONunder archaic and elaboratehighly technical Evidence Law.and avoidance of judiciallaws provide for appeals,and allow parties to file

applications and raise vexatiousapplications and raise vexatiousof which the main matters

background. All litigation indelayed which leads to

dissatisfaction among litigants.

�In view of the huge pendency,to bestow attention andarising under special legislationsis a need to transferlitigation dealt withspecial Tribunals. As Tribunalsspecial Tribunals. As Tribunalsshackles of proceduralthey can provide easy access‘cost-affordable’ and ‘user

pendency, courts are not ableand give priority to cases

legislations. Therefore, theretransfer some selected areas of

by traditional courts toTribunals are free from theTribunals are free from the

procedural laws and Evidence Lawaccess to speedy justice in‘user friendly’ manner.

MEMBERS OF THE TRIBUNAL

�Tribunals should have a JudicialMember. The Judicial Memberagainst apprehensions of biaswith basic principles of naturalhearing and reasoned ordershearing and reasoned ordersalso ensure impartiality, fairnessconsideration. The presenceensures the availability ofrelated to the field of adjudicationTribunal is created, therebyadjudication and decision-making

MEMBERS OF THE TRIBUNAL

Judicial Member and a TechnicalMember will act as a bulwarkbias and will ensure compliancenatural justice such as fair

orders. The Judicial Member wouldorders. The Judicial Member wouldfairness and reasonableness in

presence of Technical Memberof expertise and experience

adjudication for which the specialthereby improving the quality of

making.

COMPANIES (AMENDMENT) ACT, 2002

�In line with the Eradi Committeeneed and widespread criticismwe saw the Companies (Amendment)repeal of SICA (Sick Industrialto the new regime of tacklinginsolvency procedures in Indiato the new regime of tacklinginsolvency procedures in Indiaconfidence in the minds ofinvestors, creditors, labouramended Act suggested forpowers of Courts, the BIFRspecialised NCLT.

COMPANIES (AMENDMENT) ACT, 2002

Committee Report and long feltcriticism from different quarters,

(Amendment) Act, 2002 andIndustrial Companies Act) proposed

tackling corporate rescue andIndia with a view to creatingtackling corporate rescue andIndia with a view to creatingof all the stakeholders like

labour and shareholders. Thefor change by combining theBIFR and the CLB in one

INSERTION OF CHAPTER 1B & 1C IN Companies Act, 1956

�Accepting the recommendationsGovernment passed Company2002 inserting chapters 11956 which provided forCompany Law Tribunal (NCLT)Company Law Tribunal (NCLT)Appellate Tribunal (NCLAT)which were being performed(CLB), Board of Industrial(BIFR), Appellate AuthorityReconstruction (AAIFR) and

INSERTION OF CHAPTER 1B & 1C IN Companies Act, 1956

recommendations of Eradi Committee,Company (Second amendment) Act,

1B and 1C in Companies Act,establishment of National

(NCLT) and National Company Law(NCLT) and National Company Law(NCLAT) to take over the functionsperformed by Company Law Board

and Financial ReconstructionAuthority for Industrial and Financial

and the High Court.

CHALLENGE TO NEW INSERTIONS

�The Madras Bar Association,encroachment into theirdomain by other professionalsCMAs, CAs & CSs, challengedChapters 1B and 1C in 2002Chapters 1B and 1C in 2002High Court. High Court inMarch, 2004 held thatand vesting therein theCourt and Companyunconstitutional.

CHALLENGE TO NEW INSERTIONS

Association, apprehending antheir exclusive professionalprofessionals like practisingchallenged the validity of the

2002 before the Madras2002 before the Madrasin its judgment dated 30th

creation of the tribunalpowers exercised by HighLaw Board was not

CHALLENGE TO ARTICLE 323B OF INDIAN CONSTITUTION

�The petitioner had challengedalleged, diluted the judiciaryexecutives to sit in judgmentexperience. It was also arguedtribunals on the sponsoringinfrastructural facilities orindependence of the tribunal.Wheninfrastructural facilities orindependence of the tribunal.Whenthey are mostly dependant onfor funding and even spaceconstituting tribunals routinelyservices from the sponsoring departmentsof the tribunal and continuingcadre.

CHALLENGE TO ARTICLE 323B OF INDIAN CONSTITUTION

challenged Article 323B, which, theyjudiciary powers by empowering the

judgment over matters requiring judicialargued that the dependence of

sponsoring or parent department forpersonnel may undermine theWhen the tribunals are formed,personnel may undermine theWhen the tribunals are formed,on their sponsoring departmentfor functioning. The statutes

routinely provide for members of civildepartments becoming members

continuing their lien with their parent

PREJUDICED TRIBUNAL MEMBERS

�This is indeed a factlike MSTT, CESTAThave been rolling outfavour of the Revenue,favour of the Revenue,the assessees, becauseare contingent uponof the day which hasdenying the facts asBar Association.

PREJUDICED TRIBUNAL MEMBERS

fact even today when the TribunaCESTAT etc, with due respect to them

out judgment after judgmentRevenue, despite valid grounds raised bRevenue, despite valid grounds raised bbecause their posting and privilegeupon the pleasure of the Governmenhas appointed them. So there is nas argued by the Petitioner, Madra

ARTICLE 323B OF INDIAN CONSTITUTION� Article 323B provides for (1) the adjudication or trial by tribunals of any disputes, complaints, or offences withspecified in clause (2) with respect tomake laws.

� (2) The matters referred to in clause (1) are the following, namely:

� (a) levy, assessment, collection and enforcement of any tax;

� (b) foreign exchange, import and export across customs frontiers;

� (c) industrial and labour disputes;

� (d) land reforms by way of acquisitionin article 31A or of any rights thereinof any such rights or by way of ceiling on agricultural land or in any other way;

ARTICLE 323B OF INDIAN CONSTITUTIONadjudication or trial by tribunals of any ith respect to all or any of the matters to which such Legislature has power to

(2) The matters referred to in clause (1) are the following, namely:-

(a) levy, assessment, collection and enforcement of any tax;

(b) foreign exchange, import and export across customs frontiers;

ion by the State of any estate as defined ein or the extinguishment or modification

of any such rights or by way of ceiling on agricultural land or in any other

�(e) ceiling on urban property;

�(f) elections to either Housor either House of the Legislature of a State, but excluding the matters referred to in article 329 and article 329A (delimitation of constituencies or the allotment of seats to such constituencies).allotment of seats to such constituencies).

�(g) production, procuremenfood-stuffs (including edibother goods as the Presidedeclare to be essential goods for the purpose of this article and control of prices of such goods;

(e) ceiling on urban property;

ouse of Parliament or the House or either House of the Legislature of a State, but excluding the matters referred to in article 329 and article 329A (delimitation of constituencies or the allotment of seats to such constituencies).allotment of seats to such constituencies).

ent, supply and distribution of ible oilseeds and oils) and such dent may, by public notification,

declare to be essential goods for the purpose of this article and control of prices of such goods;

EMPOWERMENT FOR CONSTITUTING TRIBUNALS

�Article 323B does notCorporate Laws relatedthe reason why the Supreme2010 judgment that theParliament to provide for2010 judgment that theParliament to provide fortribunals can be tracedEntries 43, 44 read with11A r/w Entry 46 of ListSchedule of the Constitution

EMPOWERMENT FOR CONSTITUTING TRIBUNALS

not talk about generalto Companies. That was

Supreme Court held in itslegislative competence of

for creation of courts andlegislative competence of

for creation of courts andto Entries 77, 78, 79 and

with Entry 95 of List I, ItemList III of the Seventh

Constitution.

LEGALITY OF NCLT

�Articles 323A and 323B ofprovisions which enable thecontemplated therein; andhowever, cannot be interpretedprohibited the legislature fromprohibited the legislature fromcovered by those Articles,competence under the appropriateSchedule. And hence it heldnothing to do with the constitutionformation was valid and constitutional

LEGALITY OF NCLT

the Constitution are enablingthe setting up of tribunalsand that the said Articles,

interpreted to mean that theyfrom establishing tribunals notfrom establishing tribunals notas long as there is legislative

appropriate Entry in the Seventhheld that Article 323B had

constitution of NCLT and that itsconstitutional.

HIGH COURT’S STAND ON CH 1B & 1C

�The Madras High Courtprovisions of chapters 1FD(3)(f)(g)(h), inter-alia,violative of basic constitutionalviolative of basic constitutionalseparation of powerjudiciary; and that unlessamended by removing theunconstitutional to constitute

HIGH COURT’S STAND ON CH 1B & 1C

Court held that several1B and 1C i.e. Sections 10-

alia, were defective and thusconstitutional scheme ofconstitutional scheme of

and independence ofunless the provisions werethe defects, it would be

constitute NCLT and NCLAT.

CHALLENGE OF MADRAS HIGH COURT ORDER

�In 2006, the Union of IndiaMadras High Court Order ofCourt of India and the judgment11th May, 2010. In the saidconstitution bench of the Supremethe NCLAT as envisaged by theCompanies Act, 1956 (the 1956the NCLAT as envisaged by theCompanies Act, 1956 (the 1956body, it agreed with the views(wherefrom the issue came tothat certain provisions of PartAct relating to the appointmentmembership of the NCLT andand required rectification (by

CHALLENGE OF MADRAS HIGH COURT ORDER

India went in Appeal against theof 2004, before the Supreme

judgment of Supreme Court came onsaid 2010 Judgment, while theSupreme Court held the NCLT andthe Part 1B and Part 1C of the

1956 Act) to be a fit and properthe Part 1B and Part 1C of the

1956 Act) to be a fit and properviews of the Madras High Courtto the Supreme Court in appeal)Part 1B and Part 1C of the 1956

appointment and the eligibility forand the NCLAT were "defective"

way of amendment).

ELIGIBILITY OF CMAs TO BE TECHNICAL MEMBER

�The provisions of Part 1B &1956, as replicated in Chapter2013, related to NCLT/NCLATconstitution of the Tribunal, qualificationstechnical members, etc. Accordingly,practice for more than 15 yearstechnical members of the Tribunalpractice for more than 15 yearstechnical members of the Tribunaleven Jt. Secretary rank bureaucratswere eligible to become technicalobjected to by both the MadrasSupreme Court. The Courts directedAddl. Secretary level officialsfor appointment as technical members

ELIGIBILITY OF CMAs TO BE TECHNICAL MEMBER

Part 1C of the Companies Act,Chapter XXVII of the Companies Act,

NCLT/NCLAT laid down the terms forqualifications of the judicial andAccordingly, CMAs/CAs/CSs inyears were eligible to become

Tribunal. It also laid down thatyears were eligible to become

Tribunal. It also laid down thatbureaucrats and Class A Officerstechnical members, which was

Madras High Court as well as thedirected that only Secretary or

officials could be treated as eligiblemembers.

MISTAKEN NOTION ON T

�There is a mistaken notion thatprofessionals like CMAs/CAs/CSspost of technical members, whichSupreme Court had categoricallyjudgment that only Clauses (c),judgment that only Clauses (c),of clause (f) in sub-section (3of civil services of the rankSecretary in Indian CompanyService can be considered forTechnical Members of the Tribunalto CAs, CMAs & CSs.

TECHNICAL MEMBERSHIP

that the Courts had objected toCMAs/CAs/CSs being considered for the

which is not correct. In fact, thecategorically stated in their 2010

(c), (d), (e), (g), (h), and later part(c), (d), (e), (g), (h), and later part3) of section 10FD and officersof the Secretary or Additional

Company Law Service and Indian Legalfor purposes of appointment as

Tribunal. Clauses ( c),(d),(e) relate

RECTIFICATION OF PART 1B & 1C

�Pursuant to therectification to1956 Act to operationalizethe NCLAT were1956 Act to operationalizethe NCLAT werebecause alreadywas seriously deliberatedGovernment feltincorporated in the

RECTIFICATION OF PART 1B & 1C

the 2010 judgment, thPart 1B and Part 1C of th

operationalize the NCLT anwere not carried out. May boperationalize the NCLT anwere not carried out. May b

already the 2013 Companies Acdeliberated upon and th

felt that the changes could bthe new Act.

CHALLENGE OF COMPANIES ACT, 2013

� In 2014, the Companies Act, 2013the Parliament and partially notifiedprovisions in the 2013 Act relatingwere not notified. Although the1C of the 1956 Act directed byJudgment had been included inJudgment had been included inthe Madras Bar Association filedSupreme Court in 2013. The Madraswrit of declaration contendingXXVII of the 2013 Act too sufferedthose observed in the 2010 Judgment,struck down as unconstitutional.

CHALLENGE OF COMPANIES ACT, 2013

2013 (the 2013 Act) was passed bynotified into effect; although, the

relating to the NCLT and the NCLATrectifications to Part 1B and Part

by the Supreme Court in the 2010Chapter XXVII of the 2013 Act,Chapter XXVII of the 2013 Act,

filed its writ petition before theMadras Bar Association prayed for a

that some provisions of Chaptersuffered from the same defects asJudgment, and therefore should be

FINALITY TO CONSTITUTION OF NCLT

�On May 14, 2015, the ConstitutionCourt led by Chief Justice HLpetition filed by the Madrasstruck down the validity of TechnicalSelection Committee constitutionthe NCLT / NCLAT under theprovisions relating to NCLT &the NCLT / NCLAT under theprovisions relating to NCLT &under the Companies Act, 1956Gandhi, President, Madras BarSupreme Court’s ConstitutionNCLT / NCLAT and certain provisionsof board of company law‘unconstitutional’.

FINALITY TO CONSTITUTION OF NCLT

Constitution Bench of the SupremeHL Dattu partly allowed the writ

Madras Bar Association wherein itTechnical Member appointment &

constitution but it upheld the validity ofthe Companies Act, 2013. The& NCLAT were also challengedthe Companies Act, 2013. The& NCLAT were also challenged1956 (in Union of India Vs R.Bar Association), wherein the

Constitution Bench upheld the validity ofprovisions relating to constitutionadministration were held as

NTT –VS

� SC completely dismissed Madras Bar Association’swherein the constitution of National‘unconstitutional’.

� In the present case, the Supreme Court’sAdvocate Arvind Datar’s (representingAssociation) contention that UoI VsAssociation) contention that UoI Vsconstitution of NCLAT. The SC held thatdealt with the constitutional validity“Whether the constitution of NCLTCompanies Act are valid”.

� SC remarked that such ‘adventurism’unfounded and stated that the earlierConstitution Bench and is binding on the

VS- NCLT

Association’s reliance on 2014 ruling of SC,National Tax Tribunal (NTT) was held as

Court’s Constitution Bench rejected Sr.(representing the writ petitioner, Madras Bar

R. Gandhi judgment did not deal withR. Gandhi judgment did not deal withthat the Constitution Bench categorically

validity of NCLT & NCLAT under the captionNCLT and NCLAT under Parts 1B & 1C of

‘adventurism’ on the petitioner’s part is totallyearlier ruling in UoI Vs R. Gandhi is ofthe co-ordinate Bench as well.

� Apex court differentiated the NTTheld that the NTT was a matterexercised by the High Court wasbe unconstitutional. SC observedhierarchy of quasi-judicial fora2013 and stated that NCLT, wouldbut would be called upon to thrashbut would be called upon to thrashas well.

�With respect to the issue ofappointment of technical membersbench of SC relied on its earlier rulingand observed that only officersAdditional Secretaries can beTechnical members.

NTT ruling from NCLT/NCLAT andmatter where power of judicial review

vested in NTT which was sought tothat NCLT is the ‘first forum’ in theset-up under the Companies Act

would not only deal with question of lawthrash out the factual disputes/aspectsthrash out the factual disputes/aspects

constitutionality of provisions formembers to NCLT/NCLAT, the constitution

ruling in Union of India Vs R. Gandhofficers holding ranks of Secretaries or

be considered for appointment as

CONSTITUTION OF SELECTION COMMITTEE

�The SC held the constitution(for selecting the Membersinvalid and stated that insteadCommittee, it should beadministrative branch + 2administrative branch + 2Committee. The 4-memberinclude - Chief Justice, SeniorFinance Ministry and Lawthat the Chief Justice will have

CONSTITUTION OF SELECTION COMMITTEE

constitution of Selection CommitteeMembers of NCLT and NCLAT) as

instead of 5 members Selectionbe 4 members (2 from2 from judiciary) Selection2 from judiciary) Selection

member Selection Committee shallSenior Judge, Secretary in the

Secretary, with the caveathave a casting vote.

PAVING THE PATH TO NCLT

� The recent SC ruling on the constitutionalNCLAT is one of the biggest leapsthe professional fraternity. Thethe corporate restructuring (i.erestructuring, revival of sickmatters) as the NCLT will not justBoard (CLB), but will also bring underthe High Courts, Board for IndustrialBoard (CLB), but will also bring underthe High Courts, Board for Industrial(BIFR) and the Appellate AuthorityReconstruction (AAIFR).

� It seems that matters pertainingout of jurisdiction of NCLT andthe Companies Act, 2013 in 2015yet to be made effective) onwards

PAVING THE PATH TO NCLT

constitutional validity of NCLT &leaps for the corporate sector and

The step will have a positive impact one. mergers and acquisitions, capitalcompanies and dispute related

just only replace the Company Lawunder its umbrella cases filed with

Industrial and Financial Reconstructionunder its umbrella cases filed with

Industrial and Financial ReconstructionAuthority for Industrial and Financial

pertaining to winding up have been takenand NCLAT by recent amendment to

2015. However, Section 270 (which areonwards still refer to “Tribunal”.

CHAPTER XXVII OF COMPANIES ACT, 2013

DEFINITIONS

� 407. In this Chapter, unless the context

� (a) “Chairperson” means the Chairperson

� (b) “Judicial Member” means a memberTribunal appointed as such andChairperson, as the case may be;Chairperson, as the case may be;

� (c) “Member” means a member, whetherTribunal or the Appellate TribunalChairperson, as the case may be;

� (d) “President” means the President

� (e) “Technical Member” means aAppellate Tribunal appointed as such

CHAPTER XXVII OF COMPANIES ACT, 2013

DEFINITIONS

context otherwise requires,—

Chairperson of the Appellate Tribunal;

member of the Tribunal or the Appellateand includes the President or the

whether Judicial or Technical of theTribunal and includes the President or the

President of the Tribunal;

a member of the Tribunal or thesuch.

CONSTITUTING THE NCLT

�408. The Central Governmentconstitute, with effect fromspecified therein, a TribunalCompany Law Tribunal consistingCompany Law Tribunal consistingnumber of Judicial and TechnicalCentral Government mayappointed by it by notification,such powers and functionson it by or under this Act orbeing in force.

CONSTITUTING THE NCLT

Government shall, by notification,from such date as may be

Tribunal to be known as the Nationalconsisting of a President and suchconsisting of a President and such

Technical members, as themay deem necessary, to be

notification, to exercise and dischargeas are, or may be, conferredor any other law for the time

QUALIFICATION OF MEMBERS

� 409. (1) The President shall be a personCourt for five years.

� (2) A person shall not be qualified forhe -

� (a) is, or has been, a judge of a High Court

� (b) is, or has been, a District Judge for� (b) is, or has been, a District Judge for

� (c) has, for at least ten years been an advocate

� Explanation.—For the purposes of clausewhich a person has been an advocateperiod during which the person hasmember of a tribunal or any post, underknowledge of law after he becomes an advocate

QUALIFICATION OF MEMBERS

person who is or has been a Judge of a High

appointment as a Judicial Member unless

Court; or

for at least five years; orfor at least five years; or

advocate of a court.

clause (c), in computing the period duringof a court, there shall be included anyheld judicial office or the office of a

under the Union or a State, requiring specialadvocate.

� (3) A person shall not be qualified for appointment-

� (a) has, for at least fifteen years beenService or Indian Legal Service out of whichscale of Joint Secretary to the Governmentservice; or

� (b) is, or has been, in practice as a charteredor

� (c) is, or has been, in practice as a cost accountant� (c) is, or has been, in practice as a cost accountant

� (d) is, or has been, in practice as a company

� (e) is a person of proven ability, integrityexperience, of not less than fifteen years,management or administration, industriallabour matters, or such other disciplinesrevival, rehabilitation and winding up of companies

� (f) is, or has been, for at least five years,Tribunal or National Tribunal constituted

appointment as a Technical Member unless he

been a member of the Indian Corporate Lawwhich at least three years shall be in the pay

Government of India or equivalent or above in that

chartered accountant for at least fifteen years;

accountant for at least fifteen years; oraccountant for at least fifteen years; or

company secretary for at least fifteen years; or

integrity and standing having special knowledge andyears, in law, industrial finance, industrial

industrial reconstruction, investment, accountancy,related to management, conduct of affairs,

companies; or

years, a presiding officer of a Labour Court,constituted under the Industrial Disputes Act, 1947.

CONSTITUTING NCLAT

�410. The Central Governmentconstitute, with effect fromspecified therein, an Appellatethe National Company Lawof a chairperson and suchof a chairperson and suchTechnical Members, not exceedingGovernment may deem fit,notification, for hearing appealsthe Tribunal.

CONSTITUTING NCLAT

Government shall, by notification,from such date as may be

Appellate Tribunal to be known asAppellate Tribunal consisting

such number of Judicial andsuch number of Judicial andexceeding eleven, as the Centralfit, to be appointed by it byappeals against the orders of

QUALIFICATION OF NCLAT MEMBERS� 411. (1) The chairperson shall beJudge of the Supreme Court or the

� (2) A Judicial Member shall beJudge of a High Court or is a Judicialfive years.

� (3) A Technical Member shall� (3) A Technical Member shallintegrity and standing having specialnot less than twenty-five years,industrial management or administration,investment, accountancy, labourrelated to management, conductand winding up of companies.

QUALIFICATION OF NCLAT MEMBERSbe a person who is or has been athe Chief Justice of a High Court.

be a person who is or has been aJudicial Member of the Tribunal for

shall be a person of proven ability,shall be a person of proven ability,special knowledge and experience, ofyears, in law, industrial finance,

administration, industrial reconstruction,matters, or such other disciplines

conduct of affairs, revival, rehabilitation

APPOINTMENT OF MEMBERS OF NCLT/NCLAT

� 412. (1) The President of the Tribunal andAppellate Tribunal, shall be appointed after

� (2) The Members of the Tribunal and theshall be appointed on the recommendation of

� (a) Chief Justice of India or his nominee—Chairperson

� (b) a senior Judge of the Supreme Court or� (b) a senior Judge of the Supreme Court or

� (c) Secretary in the Ministry of Corporate

� (d) Secretary in the Ministry of Law and Justice

� (e) Secretary in the Department of FinancialMember.

APPOINTMENT OF MEMBERS OF NCLT/NCLAT

the chairperson and Judicial Members of theafter consultation with the Chief Justice of India.

Technical Members of the Appellate Tribunalof a Selection Committee consisting of—

Chairperson;

or a Chief Justice of High Court—Member;or a Chief Justice of High Court—Member;

Affairs—Member;

Justice—Member; and

Financial Services in the Ministry of Finance—

�412(3) The Secretary, Ministrybe the Convener of the Selection

�(4) The Selection Committeefor recommending persons under

�(5) No appointment of the Members�(5) No appointment of the MembersAppellate Tribunal shall bevacancy or any defect in theCommittee.

Ministry of Corporate Affairs shalSelection Committee.

Committee shall determine its procedureunder sub-section (2).

Members of the Tribunal or theMembers of the Tribunal or theinvalid merely by reason of any

the constitution of the Selection

HOLDING OF OFFICE

� 413. (1) The President and every other as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re-appo

� (2) A Member of the Tribunal shall hold office as such until he attains,

� (a) in the case of the President, the age of sixty

� (b) in the case of any other Member, the age of sixty� (b) in the case of any other Member, the age of sixty

� Provided that a person who has not completed fifty years of age shall not be eligible for appointment as Member:

� Provided further that the Member mayMinistry or Department, as the case maperiod not exceeding one year.

HOLDING OF OFFICE

er Member of the Tribunal shall hold office as such for a term of five years from the date on which he enters upon his

pointment for another term of five years.

(2) A Member of the Tribunal shall hold office as such until he attains,—

(a) in the case of the President, the age of sixty-seven years;

(b) in the case of any other Member, the age of sixty-five years:(b) in the case of any other Member, the age of sixty-five years:

Provided that a person who has not completed fifty years of age shall not be

ay retain his lien with his parent cadre or may be, while holding office as such for a

� 413(3) The chairperson or a Membeoffice as such for a term of five yeupon his office, but shall be eligible for reterm of five years.

� (4) A Member of the Appellate Tribattains,—

� (a) in the case of the Chairperson, the age of seventy years;

(b) in the case of any other Member, the age of sixty� (b) in the case of any other Member, the age of sixty

� Provided that a person who has not completed fifty years of age shall not be eligible for appointment as Member:

� Provided further that the Member may retain his lien with his parent cadre or Ministry or Department, as the case may be, while holding office as such for a period not exceeding one year.

ber of the Appellate Tribunal shall hold years from the date on which he enters

upon his office, but shall be eligible for re-appointment for another

ribunal shall hold office as such until he

(a) in the case of the Chairperson, the age of seventy years;

(b) in the case of any other Member, the age of sixty-seven years:(b) in the case of any other Member, the age of sixty-seven years:

Provided that a person who has not completed fifty years of age shall not be eligible for appointment as Member:

Provided further that the Member may retain his lien with his parent cadre or Ministry or Department, as the case may be, while holding office as such for a period not exceeding one year.

REMUNERATION OF MEMBERS

�414. The salary, allowances and other terms and conditions of service of the Members of the Tribunal and the Appellatas may be prescribed:as may be prescribed:

�Provided that neither the salary and allowances nor the other terms and conditions of service of the Members shall be varied to their disadvantage after their appointment.

REMUNERATION OF MEMBERS

414. The salary, allowances and other terms and conditions of service of the Members of the

llate Tribunal shall be such

Provided that neither the salary and allowances nor the other terms and conditions of service of the Members shall be varied to their disadvantage after their appointment.

VACANCY IN OFFICE

� 415. (1) In the event of the occurrenceoffice of the President or the Chairpersonresignation or otherwise, the seniorPresident or the Chairperson, aswhich a new President or Chairpersonthe provisions of this Act to filloffice.the provisions of this Act to filloffice.

� (2) When the President or the Chairpersonhis functions owing to absence,senior-most Member shall dischargePresident or the Chairperson, aswhich the President or the Chairperson

VACANCY IN OFFICE

occurrence of any vacancy in theChairperson by reason of his death,senior-most Member shall act as theas the case may be, until the date on

Chairperson appointed in accordance withfill such vacancy enters upon hisfill such vacancy enters upon his

Chairperson is unable to dischargeabsence, illness or any other cause, the

discharge the functions of theas the case may be, until the date on

Chairperson resumes his duties.

RESIGNING FROM OFFICE

�416. The President, the Chairpersonby notice in writing underCentral Government, resign

�Provided that the President,Member shall continue to holdMember shall continue to holdthree months from the datethe Central Government oras his successor enters uponexpiry of his term of office,

RESIGNING FROM OFFICE

Chairperson or any Member may,under his hand addressed to the

from his office:

President, the Chairperson, or thehold office until the expiry ofhold office until the expiry of

date of receipt of such notice byuntil a person duly appointedupon his office or until the

office, whichever is earliest.

REMOVAL FROM OFFICE� 417. (1) The Central GovernmentChief Justice of India, removeChairperson or any Member, who

� (a) has been adjudged an insolvent

� (b) has been convicted of an offenceCentral Government, involves moralCentral Government, involves moral

� (c) has become physically or mentallyPresident, the Chairperson, or Member

� (d) has acquired such financialaffect prejudicially his functionsChairperson or Member; or Salary,conditions of service of Members

REMOVAL FROM OFFICEGovernment may, after consultation with the

remove from office the President,who—

insolvent; or

offence which, in the opinion of themoral turpitude; ormoral turpitude; or

mentally incapable of acting as suchMember; or

or other interest as is likely tofunctions as such President, theSalary, allowances and other terms and

Members.

� (e) has so abused his positionoffice prejudicial to the public interest

� Provided that the President, thenot be removed on any of the grounds(e) without giving him a reasonable

� 417(2) Without prejudice to thePresident, the Chairperson or thePresident, the Chairperson or thefrom his office except by anGovernment on the ground of provedafter an inquiry made by a Judgeby the Chief Justice of India onCentral Government in which suchMember had been informed of thereasonable opportunity of being

position as to render his continuance ininterest:

the Chairperson or the Member shallgrounds specified in clauses (b) to

reasonable opportunity of being heard.

the provisions of sub-section (1), thethe Member shall not be removedthe Member shall not be removedan order made by the Centralproved misbehaviour or incapacity

Judge of the Supreme Court nominatedon a reference made to him by thesuch President, the Chairperson orthe charges against him and given aheard.

�417(3) The Central Governmentconcurrence of the Chief Justiceoffice, the President, therespect of whom referenceof the Supreme Court underCentral Government has passedreport of the Judge of thereport of the Judge of thereference.

�(4) The Central Governmentthe Supreme Court, makeprocedure for the inquirymisbehaviour or incapacity referred

Government may, with theJustice of India, suspend from

the Chairperson or Member inreference has been made to the Judge

under sub-section (2) until thepassed orders on receipt of thethe Supreme Court on suchthe Supreme Court on such

Government shall, after consultation withmake rules to regulate the

inquiry on the ground of provedreferred to in sub-section (2).

OFFICERS/STAFF OF NCLT/NCLAT

� 418. (1) The Central Government shall,and the Appellate Tribunal, provideTribunal, as the case may be, withmay be necessary for the exercisefunctions of the Tribunal and the Appellate

� (2) The officers and other employeesTribunal shall discharge their

� (2) The officers and other employeesTribunal shall discharge theirsuperintendence and control of theChairperson, or any other Membersuperintendence and control are delegated

� (3) The salaries and allowances andofficers and other employees of theshall be such as may be prescribed.

OFFICERS/STAFF OF NCLT/NCLAT

shall, in consultation with the Tribunalprovide the Tribunal and the Appellate

such officers and other employees asexercise of the powers and discharge of the

Appellate Tribunal.

employees of the Tribunal and the Appellatetheir functions under the general

employees of the Tribunal and the Appellatetheir functions under the general

President, or as the case may be, theMember to whom powers for exercising such

delegated by him.

and other conditions of service of thethe Tribunal and the Appellate Tribunal

BENCHES OF NCLT/NCLAT419. (1) There shall be constitutedTribunal, as may, by notification,Government.

(2) The Principal Bench of the Tribunalbe presided over by the President of

(3) The powers of the Tribunal(3) The powers of the Tribunalconsisting of two Members out ofand the other shall be a Technical Member

Provided that it shall be competentauthorised in this behalf to functionsingle

BENCHES OF NCLT/NCLATconstituted such number of Benches of tnotification, be specified by the Cent

Tribunal shall be at New Delhi which shof the Tribunal.

Tribunal shall be exercisable by BenchTribunal shall be exercisable by Benchwhom one shall be a Judicial MembMember:

competent for the Members of the Tribunfunction as a Bench consisting of

� Judicial Member and exerciserespect of such class of cases orclass of cases, as the Presidentspecify

� Provided further that if at anycase or matter, it appears to theis of such a nature that it oughtof two Members, the case or matterof two Members, the case or matterPresident, or, as the case may be,such Bench as the President may

� (4) The President shall, for therehabilitation, restructuring, revivingconstitute one or more Specialmore Members, majority necessarily

exercise the powers of the Tribunal inor such matters pertaining to such

President may, by general or special order,

stage of the hearing of any suchthe Member that the case or matter

ought to be heard by a Bench consistingmatter may be transferred by thematter may be transferred by thebe, referred to him for transfer, to

may deem fit.

the disposal of any case relating toreviving or winding up, of companies,

Special Benches consisting of three ornecessarily being of Judicial Members.

�419(5) If the Members ofany point or points, it shallmajority, if there is a majority,equally divided, they shallwhich they differ, and the casePresident for hearing on suchmore of the other MembersPresident for hearing on suchmore of the other Memberspoint or points shall be decidedof the majority of Membersincluding those who first heard

a Bench differ in opinion onbe decided according to the

majority, but if the Members arestate the point or points oncase shall be referred by thesuch point or points by one or

Members of the Tribunal and suchsuch point or points by one or

Members of the Tribunal and suchdecided according to the opinion

Members who have heard the case,heard it.

ORDERS OF THE TRIBUNAL� 420. (1) The Tribunal may, afterproceeding before it, a reasonablepass such orders thereon as it thinks

� (2) The Tribunal may, at any timeof the order, with a view to rectifyingthe record, amend any order passedthe record, amend any order passedamendment, if the mistake is brought

� Provided that no such amendmentorder against which an appeal has

� (3) The Tribunal shall send a copythis section to all the parties concerned

ORDERS OF THE TRIBUNALafter giving the parties to any

reasonable opportunity of being heard,thinks fit.

time within two years from the daterectifying any mistake apparent frompassed by it, and shall make suchpassed by it, and shall make such

brought to its notice by the parties:

amendment shall be made in respect of anyhas been preferred under this Act.

copy of every order passed underconcerned.

APPEAL AGAINST NCLT ORDER�421. (1) Any person aggrievedmay prefer an appeal to the

�(2) No appeal shall lie to theorder made by the Tribunal

�(3) Every appeal under sub�(3) Every appeal under subwithin a period of forty-fivewhich a copy of the orderavailable to the person aggrievedform, and accompanied byprescribed:

APPEAL AGAINST NCLT ORDERaggrieved by an order of the Tribunal

the Appellate Tribunal.

the Appellate Tribunal from anwith the consent of parties.

sub-section (1) shall be filedsub-section (1) shall be filedfive days from the date on

order of the Tribunal is madeaggrieved and shall be in suchby such fees, as may be

� Provided that the Appellate Tribunalthe expiry of the said period ofaforesaid, but within a furtherdays, if it is satisfied thatsufficient cause from filing the appeal

� 421(4) On the receipt of an appealAppellate Tribunal shall, after givingAppellate Tribunal shall, after givingreasonable opportunity of beingas it thinks fit, confirming, modifyingappealed against.

� (5) The Appellate Tribunal shallby it to the Tribunal and the parties

Tribunal may entertain an appeal afterof forty-five days from the date

further period not exceeding forty-fivethe appellant was prevented byappeal within that period.

appeal under sub-section (1), thegiving the parties to the appeal agiving the parties to the appeal a

being heard, pass such orders thereonmodifying or setting aside the order

shall send a copy of every order madeparties to appeal.

PERIOD OF DISPOSAL� 422. (1) Every application or petition presentedappeal filed before the Appellate Tribunalby it as expeditiously as possible andTribunal or the Appellate Tribunal, as theapplication or petition or appeal withinpresentation before the Tribunal orAppellate Tribunal.

� (2) Where any application or petitionperiod specified in sub-section (1), theAppellate Tribunal, shall record the reasonsor petition or the appeal, as the case maythe President or the Chairperson, asaccount the reasons so recorded, extend(1) by such period not exceeding ninety

PERIOD OF DISPOSALpresented before the Tribunal and every

Tribunal shall be dealt with and disposed ofand every endeavour shall be made by thethe case may be, for the disposal of such

within three months from the date of itsor the filing of the appeal before the

or appeal is not disposed of within thethe Tribunal or, as the case may be, thereasons for not disposing of the applicationmay be, within the period so specified; andthe case may be, may, after taking into

extend the period referred to in sub-sectionninety days as he may consider necessary.

APPEAL BEFORE SUPREME COURT

�423. Any person aggrieved byTribunal may file an appealsixty days from the date ofAppellate Tribunal to him onout of such order:out of such order:

�Provided that the Supremethat the appellant was preventedfrom filing the appeal withinbe filed within a furtherdays.

APPEAL BEFORE SUPREME COURT

by any order of the Appellateto the Supreme Court within

of receipt of the order of theon any question of law arising

Supreme Court may, if it is satisfiedprevented by sufficient cause

within the said period, allow it toperiod not exceeding sixty

TRIBUNAL NOT GOVERNED BY CODE OF CIVIL PROCEDURE

� 424. (1) The Tribunal and the Appellatedisposing of any proceeding beforeappeal before it, be bound by theof Civil Procedure, 1908, but shallnatural justice, and, subject toand of any rules made thereunder,Tribunal shall have power to regulateand of any rules made thereunder,Tribunal shall have power to regulate

� (2) The Tribunal and the Appellatepurposes of discharging their functionspowers as are vested in a civilProcedure, 1908 while trying amatters, namely:—

TRIBUNAL NOT GOVERNED BY CODE OF CIVIL PROCEDURE

Appellate Tribunal shall not, whilebefore it or, as the case may be, anthe procedure laid down in the Codeshall be guided by the principles ofto the other provisions of this Act

thereunder, the Tribunal and the Appellateregulate their own procedure.

thereunder, the Tribunal and the Appellateregulate their own procedure.

Appellate Tribunal shall have, for thefunctions under this Act, the samecivil court under the Code of Civila suit in respect of the following

� (a) summoning and enforcing the attendancehim on oath;

� (b) requiring the discovery and production

� (c) receiving evidence on affidavits;

� (d) subject to the provisions of sectionsEvidence Act, 1872, requisitioningcopy of such record or document fromcopy of such record or document from

� (e) issuing commissions for the examination

� (f) dismissing a representation for default

� (g) setting aside any order of dismissaldefault or any order passed by it ex

� (h) any other matter which may be prescribed

attendance of any person and examining

production of documents;

;

sections 123 and 124 of the Indianany public record or document or a

from any office;from any office;

examination of witnesses or documents;

default or deciding it ex parte;

dismissal of any representation forex parte; and

prescribed.

� 424(3) Any order made by the Tribunalenforced by that Tribunal in the samecourt in a suit pending therein, and itAppellate Tribunal to send for executionlocal limits of whose jurisdiction,—

� (a) in the case of an order against acompany is situate; or

� (b) in the case of an order against any� (b) in the case of an order against anyvoluntarily resides or carries on business

� (4) All proceedings before the Tribunaldeemed to be judicial proceedings withinand for the purposes of section 196 ofand the Appellate Tribunal shall be deemedsection 195 and Chapter XXVI of the Code

Tribunal or the Appellate Tribunal may bemanner as if it were a decree made by a

it shall be lawful for the Tribunal or theexecution of its orders to the court within the

a company, the registered office of the

any other person, the person concernedany other person, the person concernedbusiness or personally works for gain.

Tribunal or the Appellate Tribunal shall bewithin the meaning of sections 193 and 228,of the Indian Penal Code, and the Tribunal

deemed to be civil court for the purposes ofCode of Criminal Procedure, 1973.

JURISDICTION, POWERS & AUTHORITY� 425. The Tribunal and the Appellatejurisdiction, powers and authoritythemselves as the High Courtpurpose, the powers under theCourts Act, 1971, which shallmodifications that—modifications that—

� (a) the reference therein to aincluding a reference to the Tribunaland

� (b) the reference to Advocate-Act shall be construed as a referenceCentral Government may, specify

JURISDICTION, POWERS & AUTHORITYAppellate Tribunal shall have the sameauthority in respect of contempt of

has and may exercise, for thisthe provisions of the Contempt ofshall have the effect subject to

High Court shall be construed asTribunal and the Appellate Tribunal;

-General in section 15 of the saidreference to such Law Officers as the

specify in this behalf.

DIRECTION TO OFFICERS/STAFF

�426. The Tribunal or theby general or special order,such conditions, if any, asorder, any of its officersother person authorisedother person authorisedmatter connected with anycase may be, appeal beforein such manner as may be

DIRECTION TO OFFICERS/STAFF

the Appellate Tribunal may,order, direct, subject toas may be specified in the

officers or employees or anyauthorised by it to inquire into anyauthorised by it to inquire into any

any proceeding or, as thebefore it and to report to itbe specified in the order.

DEEMED PUBLIC SERVANTS

�427. The President, Members,employees of the TribunalMembers, officers andAppellate Tribunal shallAppellate Tribunal shallservants within the meaningIndian Penal Code.

DEEMED PUBLIC SERVANTS

Members, officers and otherTribunal and the Chairperson,

other employees of theshall be deemed to be publicshall be deemed to be publicmeaning of section 21 of the

LEGAL IMMUNITY TO TRIBUNAL/MEMBERS�428. No suit, prosecution orlie against the Tribunal, theor other employee, or againstChairperson, Member, officerthereof or liquidator or anythe Tribunal or the Appellatethe Tribunal or the Appellateof any function under thisdamage caused or likely to bein good faith done or intendedthis Act.

LEGAL IMMUNITY TO TRIBUNAL/MEMBERSor other legal proceeding shallthe President, Member, officer

against the Appellate Tribunal, theofficer or other employeesany other person authorised by

Appellate Tribunal for the dischargeAppellate Tribunal for the dischargeAct in respect of any loss orbe caused by any act which is

intended to be done in pursuance of

CONTROL OVER PROPERTY, BOOKS OF ACCOUNTS

� 429. (1) The Tribunal may, in any proceedingor winding up of any other company,under its control all property, booksrequest, in writing, the Chief MetropolitanMagistrate or the District Collectorproperty, books of account or othercompany, are situate or found, toproperty, books of account or othercompany, are situate or found, toChief Metropolitan Magistrate,District Collector, as the case maymade to him,—

� (a) take possession of such property,documents; and

� (b) cause the same to be entrustedauthorised by it.

CONTROL OVER PROPERTY, BOOKS OF ACCOUNTS

proceeding relating to a sick compancompany, in order to take into custody

books of account or other documentMetropolitan Magistrate, Chief Judici

Collector within whose jurisdiction any sucother documents of such sick or othto take possession thereof, and th

other documents of such sick or othto take possession thereof, and thChief Judicial Magistrate or th

may be, shall, on such request bein

property, books of account or othe

entrusted to the Tribunal or other perso

�429(2) For the purpose ofprovisions of sub-sectionMagistrate, Chief JudicialCollector may take or causeuse or cause to be used suchbe necessary.be necessary.

�(3) No act of the Chief MetropolitanJudicial Magistrate or thepursuance of this section shallany court or before anywhatsoever.

securing compliance with the(1), the Chief MetropolitanMagistrate or the District

cause to be taken such steps andsuch force as may, in his opinion,

Metropolitan Magistrate, Chiefthe District Collector done inshall be called in question in

any authority on any ground

NO JURISDICTION FOR CIVIL COURTS

�430. No civil court shall haveany suit or proceeding in respectthe Tribunal or the Appellatedetermine by or under thistime being in force and no injunctionany court or other authoritytime being in force and no injunctionany court or other authoritytaken or to be taken inconferred by or under thistime being in force, by theTribunal.

NO JURISDICTION FOR CIVIL COURTS

have jurisdiction to entertainrespect of any matter which

Appellate Tribunal is empowered toAct or any other law for theinjunction shall be granted by

authority in respect of any actioninjunction shall be granted by

authority in respect of any actionin pursuance of any powerAct or any other law for the

the Tribunal or the Appellate

VACANCY NO BAR ON VALIDITY

�431. No act or proceedingAppellate Tribunal shallinvalid merely on the groundany vacancy or defect inany vacancy or defect inTribunal or the Appellatemay be.

VACANCY NO BAR ON VALIDITY

proceeding of the Tribunal or thebe questioned or shall be

ground of the existence ofin the constitution of thein the constitution of the

Appellate Tribunal, as the case

APPEARANCE BEFORE NCLT/NCLAT

�432. A party to any proceedingthe Tribunal or the AppellateTribunalmay be, may either appearone or more charteredsecretaries or costsecretaries or costpractitioners or any othercase before the TribunalTribunal, as the case may

APPEARANCE BEFORE NCLT/NCLAT

proceeding or appeal beforeAppellateTribunal, as the caseappear in person or authorise

chartered accountants or companyaccountants or legalaccountants or legal

other person to present hisTribunal or the Appellatemay be.

LIMITATIONS ACT APPLICABLE

�433. The provisionsAct, 1963 shall, asto proceedings orto proceedings orTribunal or the Appellatethe case may be.

LIMITATIONS ACT APPLICABLE

provisions of the Limitationfar as may be, applyappeals before theappeals before the

Appellate Tribunal, as

TRANSFER OF PENDING CASES TO NCLT434. (1) On such date as may be notifiedthis behalf,—

(a) all matters, proceedings or casesCompany Law Administration (hereinCompany Law Board) constituted underthe Companies Act, 1956, immediatelytransferred to the Tribunal andtransferred to the Tribunal andmatters, proceedings or cases in accordanceAct;

(b) any person aggrieved by any decisionBoard made before such date maywithin sixty days from the date oforder of the Company Law Board toout of such order

TRANSFER OF PENDING CASES TO NCLTnotified by the Central Government

cases pending before the Board(herein in this section referred to as th

under sub-section (1) of section 10Eimmediately before such date shall stan

and theTribunal shall dispose of sucand theTribunal shall dispose of sucaccordance with the provisions of th

decision or order of the Company Lamay file an appeal to the High Couof communication of the decisionto him on any question of law arisin

�Provided that the High Courtthe appellant was preventedfiling an appeal within the saidwithin a further period not exceeding

�(c) all proceedings underincluding proceedingscompromise, arrangementsincluding proceedingscompromise, arrangementswinding up of companies,such date before any Districtstand transferred to the Tribunalproceed to deal with suchbefore their transfer.

Court may, if it is satisfied thatprevented by sufficient cause from

said period, allow it to be filedexceeding sixty days;

the Companies Act, 1956,relating to arbitration,

arrangements and reconstruction andrelating to arbitration,

arrangements and reconstruction andpending immediately before

District Courtor High Court, shallTribunal and the Tribunal mayproceedings from the stage

�(d) any appeal preferred to Industrial and Financial Recomade or inquiry pending to or before the Board of Industrial and Financial Recoof whatever nature pending before the Appellate Authority for Industrial andAuthority for Industrial andthe Board for Industrial and Financial Reconstruction under the Sick Industrial CoAct, 1985 immediately beforAct shall stand abated.

o the Appellate Authority for econstruction or any reference

made or inquiry pending to or before the Board of econstruction or any proceeding

of whatever nature pending before the Appellate nd Financial Reconstruction or nd Financial Reconstruction or

the Board for Industrial and Financial Reconstruction Companies (Special Provisions) fore the commencement of this

� Provided that a company in respectreference or inquiry stands abatedreference to the Tribunal undereighty days from the commencementwith the provisions of this Act:

� Provided further that no feesreference under this Act by a companyreference under this Act by a companyor inquiry stands abated under this

� (2) The Central Government mayprovisions of this Act to ensureproceedings or cases pending beforethe courts, to the Tribunal under

respect of which such appeal orabated under this clause may make a

under this Act within one hundred andcommencement of this Act in accordance

shall be payable for making suchcompany whose appeal or referencecompany whose appeal or referencethis clause.

may make rules consistent with theensure timely transfer of all matters,

before the Company Law Board orunder this section.

SPEEDING UP OF JUSTICE�The NCLT / NCLAT formationit will reduce the burdenHigh Courts and CLBsrelated matters, whichunlocking the value of distressedunlocking the value of distressedNCLAT being the ‘specializedcorporate law relatedthat the matters will beexpeditious and time bound

SPEEDING UP OF JUSTICEformation is welcome step as

burden of the Supreme Court,CLBs on the corporate lawwhich will ultimately help in

distressed assets. NCLT /distressed assets. NCLT /‘specialized benches’ formatters, it is expectedbe listed and heard in an

bound manner.

ROLE OF CMAs� The formation of NCLT / NCLATpracticing Cost Accountants, practicingpracticing Chartered Accountants,represent their client companiesapproval i.e. mergers and amalgamations,revival of sick companies and shareholdersmatters. Until the formation ofmatters. Until the formation ofprofessionals (CMA, CS & CA) couldand for the matters being heardonly Advocates were eligible forNow all practising professionalspractising CS & practising CA)representation before NCLT / NCLAT

ROLE OF CMAsNCLAT will open wide gates for thepracticing Company Secretaries, and

Accountants, as they would now be able tocompanies in matters requiring Tribunal

amalgamations, capital restructuring,shareholders-management disputethe NCLT/NCLAT, the practicingthe NCLT/NCLAT, the practicingcould appear only before the CLB

heard by the HC and Supreme Court,for arguments and representation.

professionals (Advocates, practising CMA,CA) will be treated at par forNCLAT.

PREPARATION BY CMAs

�For entering / establishing oneselfNCLAT, it would be desirabletake some efforts for enhancingwhich are listed below:

� (1) Thorough study of the2013;2013;

� (2) Thorough study of the

� (3) In-depth analysisCompanies Act, 2013 as well asamalgamations, capital restructuring,companies and shareholders-management

PREPARATION BY CMAs

oneself in the field of NCLT /desirable of a practicing professional to

enhancing their skill sets, some of

the provisions of Companies Act,

the Secretarial Standards,

and study of the provisions ofas 1956 relating to mergers and

restructuring, revival of sickmanagement dispute matters;

�(4) Thorough knowledgetopics relating to mergersrestructuring, revival ofshareholders-management dispute

�(5) Developing art of advocacy

�(6) Having basic knowledge�(6) Having basic knowledgeAccounting treatments in mattersand amalgamations, capitalcompanies and shareholdersmatters;

knowledge of the case-laws on themergers and amalgamations, capital

of sick companies anddispute matters;

advocacy and soft skill;

knowledge relating to Tax Laws,knowledge relating to Tax Laws,matters relating to mergersrestructuring, revival of sick

shareholders-management dispute

CONCLUSION

�Now hopefully, the remaining2013 will be notified and mayjudgment validates the constitutionalityNCLAT. Now, the Govt. needsthe formation of benchescountry), formation of selectionTechnical Members and JudicialTechnical Members and Judicialthe Govt. / MCA will notify afiling of petitions with NCLTdiscussed above, another areaopened up for Practising Professionalsfor which they will be requiredand ‘invest’ some time for the

CONCLUSION

remaining part of the Companies Act,may come into force soon as SC’sconstitutionality of the NCLT /needs to take immediate steps for

(as much as 16 all over theselection committee, electing

Judicial Members etc. In due course,Judicial Members etc. In due course,a cut-off date with respect to

NCLT (instead of CLB & HC). Asarea of ‘lucrative practice’ has

Professionals like CMA, CS and CArequired to take some extra-efforts

same.

Thank youThank youThank youThank youThank youThank youThank youThank youThank youThank youThank youThank youThank youThank youThank youThank you