Sections 407 to 414 of the Companies Act 2013

Sections 407 to 414 of the Companies Act 2013

NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE TRIBUNAL

Section 407.

Definitions.

In this Chapter, unless the context otherwise requires,—

(a)      “Chairperson” means the Chairperson of the Appellate Tribunal;

(b)     “Judicial Member” means a member of the Tribunal or the Appellate Tribunal appointed as such and includes the President or the Chairperson, as the case may be;

(c)      “Member” means a member, whether Judicial or Technical of the Tribunal or the Appellate Tribunal and includes the President or the Chairperson, as the case may be;

(d)     “President” means the President of the Tribunal;

(e)      “Technical Member” means a member of the Tribunal or the Appellate Tribunal appointed as such.

Section 408.

Constitution of National Company Law Tribunal.

The Central Government shall, by notification, constitute, with effect from such date as may be specified therein, a Tribunal to be known as the National Company Law Tribunal consisting of a President and such number of Judicial and Technical members, as the Central Government may deem necessary, to be appointed by it by notification, to exercise and discharge such powers and functions as are, or may be, conferred on it by or under this Act or any other law for the time being in force.

Section 409.

Qualification of President and Members of Tribunal.

(1)     The President shall be a person who is or has been a Judge of a High Court for five years.

(2)     A person shall not be qualified for appointment as a Judicial Member unless he—

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

(b)     is, or has been, a District Judge for at least five years; or

(c)      has, for at least ten years been an advocate of a court.

Explanation.—For the purposes of clause (c), in computing the period during which a person has been an advocate of a court, there shall be included any period during which the person has held judicial office or the office of a member of a tribunal or any post, under the Union or a State, requiring special knowledge of law after he become an advocate.

(3)     A person shall not be qualified for appointment as a Technical Member unless he—

(a)     has, for at least fifteen years been a member of the Indian Corporate Law Service or Indian Legal Service out of which at least three years shall be in the pay scale of Joint Secretary to the Government of India or equivalent or above in that service; or

(b)     is, or has been, in practice as a chartered accountant for at least fifteen years;or

(c)     is, or has been, in practice as a cost accountant for at least fifteen years; or

(d)     is, or has been, in practice as a company secretary for at least fifteen years; or

(e)     is a person of proven ability, integrity and standing having special knowledge and experience, of not less than fifteen years, in law, industrial finance, industrial management or administration, industrial reconstruction, investment, accountancy, labour matters, or such other disciplines related to management, conduct of affairs, revival, rehabilitation and winding up of companies; or

(f)      is, or has been, for at least five years, a presiding officer of a Labour Court, Tribunal or National Tribunal constituted under the Industrial Disputes Act, 1947.

Section 410.

Constitution of Appellate Tribunal.

The Central Government shall, by notification, constitute, with effect from such date as may be specified therein, an Appellate Tribunal to be known as the National Company Law Appellate Tribunal consisting of a chairperson and such number of Judicial and Technical Members, not exceeding eleven, as the Central Government may deem fit, to be appointed by it by notification, for hearing appeals against the orders of the Tribunal.

Section 411.

Qualifications of chairperson and Members of Appellate Tribunal.

1)       The chairperson shall be a person who is or has been a Judge of the Supreme Court or the Chief Justice of a High Court.

2)       A Judicial Member shall be a person who is or has been a Judge of a High Court or is a Judicial Member of the Tribunal for five years.

3)       A Technical Member shall be a person of proven ability, integrity and standing having special knowledge and experience, of not less than twenty-five years, in law, industrial finance, industrial management or administration, industrial reconstruction, investment, accountancy, labour matters, or such other disciplines related to management, conduct of affairs, revival, rehabilitation and winding up of companies.

Section 412.

Selection of Members of Tribunal and Appellate Tribunal.

(1)     The President of the Tribunal and the chairperson and Judicial Members of the Appellate Tribunal, shall be appointed after consultation with the Chief Justice of India.

(2)     The Members of the Tribunal and the Technical Members of the Appellate Tribunal shall be appointed on the recommendation of a Selection Committee consisting of—

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

(b)     a senior Judge of the Supreme Court or a Chief Justice of High Court— Member;

(c)     Secretary in the Ministry of Corporate Affairs—Member;

(d)     Secretary in the Ministry of Law and Justice—Member; and

(e)     Secretary in the Department of Financial Services in the Ministry of Finance— Member.

(3)     The Secretary, Ministry of Corporate Affairs shall be the Convener of the Selection Committee.

(4)     The Selection Committee shall determine its procedure for recommending persons under sub-section (2).

(5)     No appointment of the Members of the Tribunal or the Appellate Tribunal shall be invalid merely by reason of any vacancy or any defect in the constitution of the Selection Committee.

Section 413.

Term of office of President, chairperson and other Members.

(1)     The President and every other Member of the Tribunal shall hold office as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re-appointment 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:

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.

(3)     The chairperson or a Member of the Appellate Tribunal shall hold office as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re-appointment for anonther term of five years.

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

(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:

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.

Section 414.

Salary, allowances and other terms and conditions of service of Members.

The salary, allowances and other terms and conditions of service of the Members of the Tribunal and the Appellate Tribunal shall be such 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.