Uni

ver
sit
yofPet
rol
eum andEner
gy
St
udi
es(
SOL)

Academi
cyear–2020-
2021

Undersuper
visi
onofSi
rSaj
alShar
ma

PROJECT-Aut
hor
it
iesundert
heCompani
esAct
,2013

SUBMI
TTEDBY:
-

NAME-Gaar
giTomar
ROLLNO.–R450217039
SAPI
D-500060397
BATCH-B.
A.LLB(
ENERGYLAW)
SEMESTER-6TH
 TABLEOFCONTENTS

1-I
NTRODUCTI
ON
2-REGI
STRAROFCOMPANI
ES
 Meani
ng
 PowerofRegi
str
ar
3-REGI
ONALDI
RECTOR
4-NATI
ONALFI
NANCI
ALREPORTI
NGAUTHORI
TY
 Rol
eofNFRA
 PowerofNFRA
5-SERI
OUSFRAUDI
NVESTI
GATI
ONOFFI
CE
 Rol
eofSFI
O
 PowerofSFI
O
6-NATI
ONALCOMPANYLAW TRI
BUNAL
 Ci
vi
lcour
tnott
ohav
ejur
isdi
cti
on(
Sect
ion430)
 Expedi
ti
ousdi
sposal
byTr
ibunal
andAppel
l
ateTr
ibunal
(Sect
ion422)
 Qual
i
ficat
ionofPr
esi
dentandMemberoft
ri
bunal
 PowerofNCLT
7-NATI
ONALCOMPANYLAW APPELLATETRI
BUNAL
 Qual
i
ficat
ionsofChai
rper
sonandmember
soft
heAppel
l
ateTr
ibunal
 Appeal
toSupr
emeCour
t[Sect
ion423]
 Procedur
etobef
oll
owedbyt
heTr
ibunal
andAppel
l
ateTr
ibunal
[Secti
on424]
 Poweroft
heTr
ibunal
andAppel
l
ateTr
ibunal
8-SPECI
ALCOURTS:

 Composi
ti
on

 Qual
i
ficat
ionofJudge
  Of
fencesTr
iabl
ebySpeci
alCour
ts

 Appl
i
cat
ionoft
hecodeofcr
imi
nal
procedur
e[sect
ion438]

 Appeal
/Rev
isi
onsf
rom Speci
alCour
tst
oHi
ghCour
ts

9-CONCLUSUON

I
NTRODUCTI
ON:
TheCompaniesAct
,2013speci
fi
est
hef
oll
owi
ngaut
hor
it
iest
oov
erv
iewandr
egul
ate
thecompani
es:
1)REGI
STRAROFCOMPANI
ES
2)REGI
ONALDI
RECTOR
3)NATI
ONALFI
NANCI
ALREPORTI
NGAUTHORI
TY
4)SERI
OUSFRAUDI
NVESTI
GATI
ON

5)NATIONALCOMPANYLAW TRI
BUNAL
6)NATIONALCOMPANYLAW APPELATETRI
BUNAL:
7)SPECIALCOURTS
REGI
STRAROFCOMPANI
ES
1.Meani
ng:
Accordi
ngtosection2(75)ofCompaniesAct2013–“Regi
str
armeansa
Regist
rar
,anAdditionalRegi
str
ar,
aJointRegi
str
ar,
aDeputyRegi
str
aroran
Assist
antRegist
rar,hav
ingthedutyofr
egist
eri
ngcompani
esanddischar
ging
var
iousfunct
ionsundert hi
sAct”
Secti
on396oftheActempower stheCent
ralGover
nmentt
oestabl
i
sh
regi
str
ati
onoff
icesf
orthepurposeofregi
str
ati
onofcompani
esandexer
cisi
ng
other
spowersandfuncti
onundertheAct.
 R.O.
Cs.arethefi
eldoffi
cer
swhodeal sdir
ectl
ywi t
ht heCompaniesregi
ster
edor
i
ntendedtoberegist
eredwithi
nter
ri
tori
alJuri
sdict
ion.Thecompaniesacthas
vest
edinthem widepowersandimpor t
antresponsibil
i
tiesi
nconnecti
onwitht
he
admini
str
ati
onoft heAct.
TheCent r
alGovernmentmayappointRegi
strars,Addit
ional,
Joi
nt,Deputyand
Assi
stantRegist
rarsasmaybeappr opr
iat
eanddef i
netheirJur
isdi
cti
on.Ther
eis
R.O.
Cf oreachstateofIndi
a.Heisf
ullt
imeof f
icerappointedbyCentr
al
Governmentandi sresponsi
blef
ort
headmi ni
strati
onoft heCompanyl awint
hat
st
ate.

2.POWEROFREGI
STRAR:
 Sect
ion7 
–Regi
str
ati
onofacompanyi
sobt
ainedbyf
il
inganappl
i
cat
ion
wit
htheROC
Thecompanyi ssaidtobebor nfr
om thedatement i
onedinthecer ti
ficateof
i
ncorporationandt hedateappear i
ngonitisconclusi
veeveni fi
tiswr ong.
Notonlydoest hecert
ifi
catecreatethecompany,ital
soi “
s theconcl usive
evi
dencet hatallrequi
rementsoft hi
sacthavebeencompl iedwi t
hi nr espect
ofregi
strationandmat tersprecedentandi
ncidentalt
heret
oandt hatt he
associ
ationi sacompanyaut hor i
zedtoberegist
eredanddul yregist
er ed
underthi
sact ”
.
thedeci sionoftheJudi cialCommi tt
eeofthePr i
vyCounci li MoosaGool
n  am
Arif
fv .Ebr ahi
m Gool am Ar i
f,i
nwhichLordMacnaght ensaid:
“TheirLor dshi
pswi llassumet hatcondit
ionsofregistrat
ionprescri
bedbythe
Indi
anCompani esActwer enotdulycompl i
edwi t
h;thattherewerenotseven
subscr i
ber stothememor andum andthattheregist
raroughtnott ohav
e
grantedt hecertif
icate,butthecerti
fi
cateisconclusiveforallpur
poses”
.
 Sect
ion83 
–Powertomakeent
ri
esofsat
isf
act
ionandr
eleasewi
thout
i
nti
mationf
rom company

Byv
irt
ueofSect
ion83,
theRegi
str
ari
sal
l
owedt
omakeent
ri
esofsat
isf
act
ion,
etc,
aft
er
r
ecei
vi
ngev
idencet
hat
,

i
. Thedebtf
orwhi
chchar
gei
sgi
venhasbeenpai
dorsat
isf
iedi
nwhol
eori
n
par
t;or

i
i
. Thatapar
toft
hepr
oper
tyorunder
taki
ngchar
gedhasbeenr
eleasedf
rom
t
hechar
georhasceasedt
ofor
m apar
toft
hecompany
’spr
oper
tyor
 under
taki
ng.

Ther
egi
str
armayent
eri
nther
egi
ster
,amemor
andum ofsat
isf
act
ioni
nwhol
eori
n
par
toft
hepr
oper
tyorunder
taki
ngf
rom t
hechar
georhasceasedt
ofor
m apar
toft
he
company
’spr
oper
tyorunder
taki
ngev
eni
fnoi
nti
mat
iont
otheef
fecthasbeenr
ecei
ved
byhi
mfr
om t
hecompany
.Wi
thi
n30day
sofmaki
ngsuchent
ry,
ther
egi
str
arhast
o
i
nfor
mtheaf
fect
edpar
ti
es.

 Sect
ion206 
–Powert
ocal
lfori
nfor
mat
ion,
inspectbooksandconduct
i
nquir
ies
Aspert heprov i
si
onsofSect ion206oft heCompani esAct,2013, theRegistr
armay
requir
eanycompanyt ofurnishinformationorexpl
anat i
onorpr oduceanydocument ,i
f
afterscr ut
ini
zinganydocumentoronr ecei
vinganyinformati
on, hefeelsthatsuch
document sarenecessar y.
TheRegi str
armayal soinfor mt hecompanyoff acts,seekit
sr eplyandorderani nqui
ry
i
fhehasr easontobel i
evet hatthebusinessofthecompanyi sbei ngcarr
iedoutf ora
fraudulentpurpose, ornotincompl i
ancewi t
htheAct ,af
tergi
vingt hecompanya
reasonabl eoppor t
unityofbei ngheard.
 Sect
ion209:
Sear
chandSei
zur
e

TheRegi
str
ari
sempower
edt
oobt
ainanor
derf
rom t
heSpeci
alCour
tfort
hesei
zur
eof
booksandpaper
soft
hecompanyi
fuponr
ecei
vi
ngi
nfor
mat
ionorot
her
wise,
hehas
r
easont
obel
i
evet
hatt
hesebooks,
paper
soft
hecompanyar
eli
kel
ytobeal
ter
ed,
mut
il
ated,
fal
si
fi
ed,
secr
etedordest
roy
ed.TheRegi
str
arorI
nspect
ori
sfur
theral
l
owed
t
otakecopi
esandext
ract
sofsuchdocument
s.

 Sect
ion248 
–Powert
oremov
ethenamef
rom t
her
egi
sterofcompani
es

Ther
emaybear
easonabl
ecausef
ort
her
egi
str
art
obel
i
evet
hat
:

 Acompanyhasf
ail
edt
ocommencei
tsbusi
nesswi
thi
noney
earofi
ts
i
ncor
por
ati
on;
 Thesubscr
iber
stot
hememor
andum hav
enotpai
dthesubscr
ipt
ionmoney
whi
cht
heyhadunder
takent
opaywi
thi
n180day
sfr
om t
hedat
eof
i
ncor
por
ati
onandaccor
dingl
ythedecl
arat
ionunderSect
ion11(
1)coul
dnot
bef
il
edwi
thi
n180day
s;or
  Thecompanyi
snotcar
ryi
ngonanybusi
nessf
or2i
mmedi
atel
ypr
ecedi
ng
f
inanci
aly
ear
sandhasnotappl
i
edunderSect
ion455f
orobt
aini
ngt
hest
atus
ofador
mantcompany
.

I
nsuchasi
tuat
ion,
theRegi
str
arhast
osendanot
icet
othecompanyandal
li
ts
di
rect
orst
ell
i
ngt
hem t
hathehast
hei
ntent
iont
oremov
ethenameoft
hecompany
f
rom t
her
egi
ster
.Theyar
eaccor
dingl
ycal
l
edupont
osendt
hei
rrepr
esent
ati
onsal
ong
wi
thcopi
esofr
elev
antdocument
swi
thi
n30day
sfr
om t
hedat
eoft
henot
ice.

3.FUNCTI
ONSOFTHEREGI
STRAROFCOMPANI
ES

 Sect
ion77:
Regi
str
ati
onofChar
ges

Accor
dingt
oSect
ion77,
iti
sthedut
yofev
erycompanycr
eat
ingachar
ge
t
oregi
stert
hepar
ti
cul
arsoft
hechar
gewi
tht
heRegi
str
arofCompani
es.A
char
geont
hepr
oper
tyorasset
soft
hecompanywhet
hert
angi
bleor
ot
her
wise,
sit
uat
edi
norout
sideI
ndi
ahast
ober
egi
ster
ed.I
tisr
equi
red
t
hatt
hisi
nst
rumentofchar
gebei
nthepr
escr
ibedf
orm andbef
il
edwi
th
t
hepr
escr
ibedf
eewi
thi
n30day
sofi
tscr
eat
ion.
TheRegi
str
arcan,
howev
er,
per
mitf
orr
egi
str
ati
onwi
thi
ntheext
ended
per
iodof300day
sont
hepay
mentoft
hepr
escr
ibedaddi
ti
onal
fee.
AsperSect
ion77(
2),
theRegi
str
ari
srequi
redt
oissueacer
ti
fi
cat
eof
r
egi
str
ati
oni
nthepr
escr
ibedf
orm andmannert
othecompanyaswel
las
t
othechar
gehol
der
,ast
hecasemaybe.

 Sect
ion78:
Appl
i
cat
ionf
orr
egi
str
ati
onofchar
ges

I
ncaseacompanyf
ail
stor
egi
sterachar
ge,
thechar
ge-
hol
dermayappl
y
t
otheRegi
str
arofCompani
esf
orr
egi
str
ati
onal
ongwi
tht
hei
nst
rument
underwhi
cht
hechar
gei
scr
eat
ed.TheRegi
str
ari
sthenr
equi
redt
ogi
vea
not
icet
othecompanyi
nor
dert
oenabl
eitt
oinf
orm whet
hert
hecompany
hasi
tsel
fcr
eat
edachar
geandi
fithasnot
,theni
nfor
m aboutt
her
eason
 f
ort
hesame.Wi
thi
n14day
s,t
heRegi
str
ari
srequi
redt
oregi
stert
he
char
geonpay
mentofpr
escr
ibedf
ee.

 Sect
ion81:
Regi
str
art
okeept
her
egi
sterofchar
gesi
nrespectofev
ery
company

Accor
dingt
othi
sSect
ion,
theRegi
str
arhasbeenr
equi
redt
okeepa
r
egi
steri
nthepr
escr
ibedmanner
,cont
aini
ngpar
ti
cul
arsoft
hechar
ge
r
egi
ster
edundert
heAct
,inr
espectofev
erycompany
.Thi
sRegi
stercan
bei
nspect
edbyanyper
sonaf
tert
hepay
mentofapr
escr
ibedf
ee.The
companyi
sunderadut
ytof
orwar
dtot
her
egi
str
art
henecessar
y
par
ti
cul
arsi
nsuchf
orm andonpay
mentofsuchf
eeasmaybepr
escr
ibed.
TheRegi
str
ar’
sregi
sterhast
oshowt
hepar
ti
cul
arsr
elat
ingt
othechar
ge
suchast
hedat
eofchar
ge,
theamountsecur
ed,
thepr
oper
tycov
eredand
t
heper
sonsent
it
ledt
othechar
geandi
fapr
oper
tyal
readyunderachar
ge
hasbeenpur
chased,
thedat
eofpur
chase.Thesamepar
ti
cul
arshav
eto
beshownbyt
hecompany
’sr
egi
ster
.

Funct
ionsi
nRel
ati
ont
oCompl
i
anceofSt
atut
oryRequi
rement
sundert
heCompani
es
Act

TheROCi
sent
rust
edwi
tht
hedut
ytoensur
ethatal
lst
atut
oryr
equi
rement
sundert
he
Compani
esActar
ecompl
i
edwi
th.Thesei
ncl
udet
heper
iodi
cfi
l
ingofAnnual
Ret
urns
andBal
anceSheet
s,Changeofdi
rect
orshi
poft
hecompany
,regi
ster
ingcompani
es
i
ncor
por
atedi
nther
espect
ivest
atesandt
heUni
onTer
ri
tor
ies,
etc.

 Sect
ion93:
Ret
urnt
obef
il
edwi
thRegi
str
ari
ncasepr
omot
ers’
stake
changes

Accor
dingt
othi
sSect
ion,
all
li
stedcompani
esar
erequi
redt
ofi
l
ear
etur
nint
he
pr
escr
ibedf
orm wi
tht
heRegi
str
arr
elat
ingt
ochangei
nthenumberofshar
eshel
dby
t
hepr
omot
ersandt
op10shar
ehol
der
sofsuchcompany
.Thi
sret
urnneedst
obef
il
ed
wi
thi
n15day
soft
hehappeni
ngofsuchachange.

Funct
ionsi
nRel
ati
ont
oInspect
ion,
Inqui
ry,
and 
Inv
est
igat
ion

 Sect
ion208:
Repor
tonI
nspect
ion

Oncompl
eti
onofi
nspect
ionandi
nqui
ryunderSect
ion206andSect
ion207,
the
Regi
str
ari
srequi
redt
osubmi
tar
epor
tinwr
it
ingt
otheCent
ral
Gov
ernmental
ongwi
th
t
henecessar
ydocument
s.

REGI
ONALDI
RECTOR:

TheMi
nist
ryofCor
por
ateAf
fai
rsi
sempower
edt
oappoi
ntRegi
onal
Dir
ect
orf
ort
he
pur
poseofcar
ryi
ngoutv
ari
ousf
unct
ionundert
heAct
.Thepower
sandf
unct
ionsoft
he
Cent
ral
Gov
ernmentunderv
ari
ousf
unct
ionshav
ebeendel
egat
edt
otheRegi
onal
Di
rect
ori
npur
suanceofSect
ion458.Ther
egi
onal
dir
ect
orshal
lexer
ciset
hepowerand
f
unct
ionsoft
hecent
ral
gov
ernmentsodel
egat
edt
oitundert
hev
ari
oussect
ions

NATI
ONALFI
NANCI
ALREPORTI
NGAUTHORI
TY[
SECTI
ON132]

Undersect
ion132oft
heCent
ral
Gov
ernmenti
saut
hor
izedt
oconst
it
uteNat
ional
Fi
nanci
alRepor
ti
ngAut
hor
it
y(NFRA)asanapexbodyf
ort
hepur
poseofv
ari
ous
mat
ter
srel
ati
ngt
oaccount
ingandaudi
ti
ngst
andar
ds.NFRAwoul
dber
esponsi
blef
or
mat
terr
elat
ingt
ofor
mul
ati
on,
inf
ormat
ionandenf
orcementofaccount
ingaudi
ti
ng
st
andar
ds.

1-ROLEOFNFRA:

 Makerecommendat i
onstotheCent r
alGov er
nmentont heformul
ati
onandlay
ing
downofaccounti
ngandaudi t
ingpoli
ciesandst andardsforadopt
ionby
companiesorcl
assofcompani esortheiraudi
tors,asthecasemaybe.
 Moni
torandenforcethecompl i
ancewithaccount i
ngstandardsandaudi
ti
ng
 standardsi
nsuchmannerasmaybepr escri
bed.
 Ov er
seethequali
tyofservi
ceoftheprofessi
onsassociat
edwithensur
ing
compl i
ancewit
hsuchst andar
ds,andsuggestmeasuresrequi
redfor
i
mpr ovementinquali
tyofserv
iceandsuchot herr
elat
edmattersasmaybe
prescri
bed.

2-POWEROFNFRA

TheNat
ional
Financi
alRepor
ti
ngAut
hor
it
yhast
hef
oll
owi
ngpower
stoexecut
eit
srol
es
andr
esponsi
bil
it
ies:

 Powert oi nvest i
gate,eit
her  suomot u 
oronar eferencemadet oitbyt heCent ral
Government ,forsuchcl assofbodi escorporateorper sons, i
nsuchmanneras
maybepr escribedintot hemat ter sofprofessional orot hermi sconduct
commi ttedbyanymemberorf irm ofChar ter
edAccount ants,regist
eredunder
theChar teredAccount antsAct ,1949.
o Pr ov idedt hatnoot heri nst it
uteorbodyshal linitiateorcont i
nueany
proceedi ngsinsuchmat tersofmi sconductwher et heNat ionalFinanci al
Repor t
ingAut horityhasi niti
atedani nvestigat ionundert hi
ssect i
on.
 Havethesamepower sasar evest edinaci vi
l cour tundert heCodeofCi vil
Procedur e,1908, whi
letryingasui t,i
nrespectoft hef ollowingmat t
ers,namel y:
o Di scov er yandpr oduct ionofbooksofaccountandot herdocument s,at
suchpl aceandatsucht imeasmaybespeci fiedbyt heNat i
onalFinanci al
Repor t
ingAut hority;
o Su mmoni ngandenf orcingt heat t
endanceofper sonsandexami ningt hem
onoat h;
o I nspect ionofanybooks, register
sandot herdocument sofanyper son
referredt oatanypl ace;
o I ssuingcommi ssionsf ort heexami nati
onofwi tnessesordocument s;

Whereprof
essi
onalorothermisconducti
sproved,t
he 
Nat
ional
Financi
alRepor
ti
ng
Aut
hori
ty(NFRA)hasthe power 
tomakean order
 f
or:
 

 Imposingpenal tyofnotl essthanonel akhrupees,butwhichmayext endtofiv

e
ti
mesoft hef eesreceived, i
ncaseofi ndivi
dual
s. 
Imposingpenal tyofnotless
thantenlakhr upees,butwhi chmayext endtotentimesoft hefeesreceived,
in
caseoffirms.
 De bar
ri
ngthememberort hef i
rmfrom engaginghimselfori t
selffr
om practi
ce
asmemberoft heInsti
tuteofChar ter
edAccount antofIndiaforami nimum
periodofsixmont hsorf orsuchhi gherper i
odnotexceedingt enyearsasmaybe
decidedbyt heNat i
onal Financi
alRepor ti
ngAuthori
ty.

SERI
OUSFRAUDI
NVESTI
GATI
ONOFFI
CE[
SECTI
ON211]

Sect
ion211oft
heActdeal
swi
tht
heest
abl
i
shmentofSer
iousFr
audI
nvest
igat
ion
Offi
cebytheCent
ralGov
ernmentasamul
ti
-di
scipl
i
naryor
gani
zat
ion,
gui
dedby
separat
enewsecti
onundert
heCompani
esAct,2013.

As persecti
on 212 oft
he Act
, 
the Cent
ralGov
ernment 
mayr eferanymat t
erf
or
i
nvesti
gat
iontoSFIO,
 ofi
tisoftheopini
onthati
tisnecessar
yt oinv
est
igat
e ont
he
basi
sof:
a)Onrecei
ptofarepor
toftheRegi
str
arori
nspectorundersect
ion208wher
efur
ther
 
 i
nvest
igat
ioni
ntot
heaff
air
soft
hecompanyisnecessary;
b)Oni nt
imat
ionofaspecialr
esol
uti
onpassed bya 
companyt
hati
tsaf
fai
rsar
e
requi
red t
obeinv
est
igat
ed;
c)I
nthepubl
i
cint
erest
;or
d)Onr
equestf
rom anyDepar
tmentoft
heCent
ral
Gov
ernmentoraSt
ateGov
ernment
Thecaseshal
lnotbei
nvest
igat
edbyot
herdepar
tment
swhenassi
gnedt
oSFI
O
Aspersect ion212(2)oft heAct,whenanycasehasbeenassi gnedbyt heCent ral
Gover
nmentt otheSFI
Of orinv
esti
gati
onunderthi
sAct ,nootheri
nvest
igati
ngagency
ofCentr
al Gover
nmentoranySt at
eGovernmentshal
lproceedwithi
nvesti
gationinsuch
caseinrespectofanyof
fenceunderthi
sActandallexi
stingcaseswil
lbetransfer
redto
SFIO.

1-ROLEOFSFI
O

Asstat
edinSect i
on211( 1)ofSFI
O’sprimar yr
oleistoi
nvest
igat
efraudsrel
ati
ngtoa
company.Section212( 1)stat
esthatwher eCentralGov
ernmenti
soft heopi
nion,t
hati
t
i
snecessarytoi nvesti
gateintoaf
fair
sofacompanybyt heSFIO,i
tmayassignt he
i
nvesti
gat
iont otheSFI O.Thecentralgovernmentmaymaket hatassi
gnmentunderthe
fol
l
owingcircumst ances-

a)Onr ecei
ptofar epor
toftheRegi
strarori
nspect
orundersecti
on208;
b)Oni nt
imationofaspecialr
esol
uti
onpassesbyacompanyt hati
tsaf
fai
rar
e
requir
edtobei nvest
igat
e;
c)I
nt hepublicint
erest
;
d)Onr equestfr
om anyDepartment;
or
e)Onr equestfr
om anyDepartmentoftheCentr
alGover
nmentoraSt ate
Gov er
nment

I
tmaybet hatt
heSFI
Oundersect
ion212(
1)canunder
takeanyi
nvest
igati
ononl
yupon
aref
erencebei
ngmadet
oitbytheCentr
alGover
nmentandnotsuomot oo

2-POWEROFSFI
O

Undersect
ion212,
theSFI
Oshal
lhav
ethef
oll
owi
ngpower
s-

a)Excl
usi
vej
uri
sdi
cti
on-Onceacasehasbeenassi
gnedt
otheSFI
O,noot
her
 invest i
gati
ngagencyofCent ral GovernmentoranySt ateGov ernmentshal l
ini
tiateorpr oceedwi t
hinv estigationifacasehasal readybeeni niti
at edin
respectofanyof fenceundert hisAct .Theconcer nedagencyshal l transferallt
he
rel
ev antdocument sandrecor dsinr espectofsuchof fencet oSFI O.
b)PowerofI nspect orundersect ion217-TheI nvestigatingof f
icershal l havethe
poweroft hei nspect orprescr ibedundersect i
on217,
c)Powert oseeki nformat i
onandexpl anat i
on–t hecompanyandi tsof ficer
sand
empl oyees,bothpr esentand, shallber esponsi blet opr ov ideal li
nf ormat i
on,
explanat i
on, documentandassi stancet otheI nvest i
gat ingof fi
cerf orconductof
thei nvesti
gat i
on.
d) Powert oarrest–Anyper sonwhoSFI Obel ievei ngui lt
yofaspeci fiesof fence
maybear restedi nforminghi mt hegr oundf orsuchar rest .Theof fences
speci fi
edar ethoset hatarecov er
edunderSect ion447.
e)Poweranddut ytocooper ate-Anyot heri nvestigatingagency ,t
hest ate
gov ernment ,pol i
ceaut hority,incomet axaut hor i
ti
eshav inganyi nfor mat i
onor
document si nrespectofof f
encebei ngi nvesti
gat edbyt heSFI Oshal lbeunder
obligationt oprov ideallsuchi nformat i
onordocument sav ailablewi thi tt
ot he
SFIO.TheSFI Ohasar eci
pr ocal dutyt oshar eanyi nf ormat ionordocument s
availablewi thit,wi t
hanysuchagencyoraut hor i
ty

NATI
ONALCOMPANYLAW TRI
BUNAL

Undersecti
on 408, t
heCent r
alGover
nmentshal l
consti
tut
eaNationalCompany
LawTribunal
.TheTr ibunalshall
exerci
seanddischargesuchpowersandf unct
ionsas
maybeconcer nedoni tbyt heActoranyotherl
awf ortheti
mebeingti
nthef or
ce.The
Tri
bunalisaquasi-
judicialbodyintheadmini
str
ati
onoft heprov
isi
onofthisAct.

Benchesoft heTr i
bunal-Thecent r
al Governmentbynot i
fi
cati
onshall
alsoconst i
tute
benchesoft heTr i
bunal.ThePrincipalBenchoft heTri
bunalshall
beatNewDel hiwhi ch
shallbepresidedov erbythePresidentoft heTri
bunal.ThepowersoftheTr i
bunal shall
beexer ci
sablebyBenchesconsi st
ingoft woMember soutofwhom oneshal lbea
JudicialMemberandt heothershallbeaTechni calMember .Howeverforcert
aincl ass
ofcasesormat t
ersper t
aini
ngtocer tainclassofcasesasmaybespeci f
iedbythe
presidentoftheTribunalabenchconsi st
ingofasinglejudi
cialmembershallbe
compet ent[sect
ion419]

1)Ci
vi
lcour
tnott
ohav
ejur
isdi
cti
on[
Sect
ion430]
:

Noci vi
lcourtshal
l havej uri
sdicti
ontoent ert
ainanysuitorproceedinginrespectofany
mat t
erwhicht heTribunal ortheAppel l
ateTribunali
sempower edt odet
erminebyor
underthisActoranyot herl awforthetimebei nginfor
ceandnoi njunct
ionshallbe
grantedbyanycour torot herauthori
tyinrespectofanyactiontakenort obetakenin
pursuanceofanypowerconf err
edbyorundert hi
sActoranyot herlawfort
het i
me
beinginforce,bytheTr ibunal ortheAppellat
eTr i
bunal
.

2)Expedi
ti
ousdi
sposal
byTr
ibunal
andAppel
l
ateTr
ibunal
[Sect
ion422]
:
 Ever
yappli
cati
onorpet i
ti
onbeforetheTribunalandappealbeforetheAppel l
ate
Tri
bunal
shallbedisposedofexpediti
ouslynormallywit
hin3mont hs.Ifiti
snot
di
sposedofwithi
nt hr
eemonthsr easonsf ort
hesameshal lberecordedbyt heTribunal
andAppell
ateTri
bunal.Thepr
esidentoft hetr
ibunalorchai
rper
sonoft heAppell
ate
Tri
bunal
mayext endthetimefortheperiodexceedingninet
yday s.

3)Qual
i
ficat
ionofPr
esi
dentandMember
sofTr
ibunal
:

Sect
ion409pr
escr
ibest
hequal
i
ficat
ionf
orappoi
ntmentoft
hePr
esi
dentandmember
s
ofTr
ibunal
.

Presi
dent:ThePr
esi
dentshal
lbeaper
sonwhoi
sorhasbeenaJudgeofaHi
ghCour
t
forfi
veyears.

Judi
cial
Member
s:Aper
sonshal
lnotbequal
i
fiedf
orappoi
ntmentasaJudi
cial
Member
unl
esshe—

(
a)I
s,orhasbeen,
ajudgeofaHi
ghCour
t;or

(
b)I
s,orhasbeen,
aDi
str
ictJudgef
oratl
eastf
ivey
ear
s;or

(
c)Has,
foratl
eastt
eny
ear
sbeenanadv
ocat
eofacour
t.

4)POWERSOFNCLT
Thepr oposedNCLTwillhav
ejudici
alandt
echnicalexper
tswhowi
llhandleal
lmatters
presentl
ybeinghandl
edbyCLB,CompanyCour tandBI FRwit
hmuchwi derj
uri
sdi
ction
i
nt ermsofscopeofthesubj
ects.
Ot
herpower
s:
 Mostofthepower softheCompanyLawBoar dundertheCompani esAct ,
1956.
 Al
lthepowersofBI FRforr
evi
valandrehabi
li
tat
ionofsi
ckindustri
alcompani es;
 PowerofHighCour ti
nthemat t
ersofmerger
s,demergers,amalgamations,windi
ngup,
et
c.;
 Powertoorderrepaymentofdeposi
tsaccept
edbyNon- BankingFinanci
alCompani es
asprov
idedinsection45QAoftheReserveBankofIndiaAct,1934;
 Powertowindupcompani es;
 PowertoReviewitsownorders.

NATI
ONALCOMPANYLAW APPELATETRI
BUNAL:

Undersect i
on410, t
heCent r
al Gover
nmentshallconsti
tuteaNati
onal CompanyLaw
Appellat
eTr i
bunal.TheAppellateTri
bunalshal
lhearappealsagai
nsttheor der
softhe
Tri
bunal oroftheNat i
onalFi
nancialRepor
tingAuthori
ty.Theappell
atetri
bunalto
consistofachairpersonsandsuchnumberofJudi ci
alandTechnicalMember s,not
exceedingeleven,astheCentralGovernmentmaydeem f i
t,t
obeappoi nt
edbyt he
CentralGovernmentbynot i
fi
cat i
on.
TheCentr
alGover
nmentconst
it
utedt
heNat
ional
LawAppel
l
ateTr
ibunal
(NCLAT)wi
th
eff
ectf
rom 1June,2016.

1.Qual i
fi
cat i
onsofChai r
personandmember soft heAppel l
ateTr i
bunal :
 Chai rper son: Thechai rper sonshal lbeaper sonwhoi sorhasbeenaj udge
oft heSupr emeCour tort hechi efj ust iceofaHi ghCour t.
 Judi ci al Member s:AJudi cial Membershal lbeaper sonwhoi shasbeena
JudgeofaHi ghCour tori saJudi ci al Memberoft heTr i
bunal f
orFi ve
Year s.
 Techni cal Member :TheTechni cal Membershal lbeaper sonwi thpr ov en
abi l
ity ,int egrityandst andi nghav i
ngspeci al knowl edgeandexper ience, of
notl esst han25y ears.
2.Appeal toSupr emeCour t[Sect i
on423] :
Anappeal agai nstor deroftheAppel l
atet r i
bunal maybef i
ledbyt heaggr ieved
persont otheSupr emeCour t.Anappeal tot heSupr emeCour tcanbef i
ledonl y
onanyquest i
onofl awar i
singoutofsuchor der .Theappeal mustbef i
ledwi thin
sixtyday soft her ecei ptoftheor derext endabl ebyanot hersi xtydaysift he
personwaspr ev ent edbysuf fi
cientcauset of i
lewi thintime
3.Procedur et obef ollowedbyt heTr ibunal andAppel lateTribunal [Section424]:
TheTr ibunal andt heAppel lateTr i
bunal shal lbegui dedbyt hepr i
ncipalofnat ur al
j
ust i
ceandt her eforehav epower stor egul at et heirownpr ocedur e.Theyshal lnot
beboundbyt hepr ocedur elai ddowni nt heCodeofCi v i
lProcedur e,1908.
Howev erwhi lel ay i
ngdownt hepr ocedur et heyshal l considert heotherpr ov ision
ofthisActandanyr ulesmadet hereunder .
RighttoLegalRepr esentati
on–Apar tyoanypr oceedi ngorappeal beforet he
tri
bunal ort heAppel lateTri
bunal ,hasar ightt oei therappeari npersonor
throughoneormor edul yaut horizedchar ter edaccount antsorcompany
secretar i
esorcostaccount ant sorl egal pr actitioner soranyot herpersont o
presenthi scasebef or
etheTr ibunal ortheAppel lateTr i
bunal [
Secti
on432]
Limitation-Thepr ov isi
onofl imi tati
onAct , 1963shal l
,applyt opr oceedingsor
appealsbef or et heTr i
bunal orAppel l
ateTr ibunal .

4.PoweroftheTr ibunal andAppel lateTr i

bunal :
Thepoweroft het ri
bunal andAppel l
at eTribunal ar
edescribedbel ow:
i
. Power sasaci vilcour tundercodeofci vi
lprocedure,1908-Thet r
ibunal
andAppel l
ateTr ibunal shal lenjoyt hesamepower sasaci vilcourtont he
fol
l
owi ngmat ters:
a)Summoni ngandenf or cingtheat t
endanceofanyper sonandexami ning
him onoat h;
b)Requi ri
ngt hedi scover yandpr oduct i
onofdocument s;
c)Recei vingev i
denceonaf fi
dav i
ts
d)I ssuingcommi ssionf ort heexami nati
onofwi t
nessesordocument s
e)Di smi ssingar epr esent ati
onf ordef aultordeci
dingi texpar te;
f) Settingasi deanyor derofdi smissal ofanyrepresent ati
onf ordefaultor
anyor derpassesbyi texpar t
e;and
g)Anyot hermat terwhi chmaybepr escr
ibed[section424( 2)]
 i
i
. Powertopunishforcont
empt[Secti
on425]-Inrespectofanycontempt
ofanorderoftheTri
bunalorAppel
lat
eTribunal
,theyshal
lhavethesame
powersandauthori
tytopuni
shforcontemptastheHi ghCourtundert
he
prov
isi
onoftheCont emptofCourt
sAct,1970.

SPECI ALCOURTS:
Toprov i
despeedyt r
ialofoff
encesundert heAct ,
theCentral Governmentmayby
noti
fi
cation,appoi
ntordesignateasmanyspeci alcourt
sasmaybenecessar y.I
ncase
ofoffencespunishableundertheActwi thimpri
sonmentoft woy earsormore,aspeci
al
court
sshal lconsi
stofasinglejudgeholdingoffi
ceasSessi onJudgeorAddi t
ional
SessionJudge.Incaseofot heroffences,theSpecialCourtshallconsistofa
Metropolit
anMagi st
rateoraJudicialMagistrat
eoft heFir
stCl ass[Secti
on435].

1.Composi
ti
on

A Speci
alCourtwil
lconsi
stofasi ngl
ejudgewhowi llbeappoi
ntedbyt
heCentral
Governmentwit
htheconcurr
enceoftheChiefJust
iceoftheHi
ghCourtwi
thi
nwhose
j
uri
sdict
ionthej
udgetobeappoi
ntedisworki
ng.

2.Qual
i
ficat
ionofJudge

Apersonwil
lnotbequali
fi
edforappoi
ntmentasaj udgeofaSpecialCour
tunlessheis,
i
mmedi at
elybefor
e such appoi
ntment,hol
ding offi
ce ofa Sessions Judge oran
Addi
ti
onalSessi
onsJudge.

3.Of
fencesTr
iabl
ebySpeci
alCour
ts

Consequentt
oamendmentmadeinMay2015,thespeci
alcour
tswoul
ddealwit
htri
al
ofoff
encesundertheCompani
esAct
,2013,t
hatar
epunishabl
ewit
himpr
isonmentof
twoyearsormore.

IftheSpeci alCourtthi
nksfit
,itmayt ryinasummar yway,anyoffenceunderthe
Compani esAct,2013,whichispuni
shablewithimpri
sonmentf
orat er
m notexceedi
ng
3y ears,provi
dedthatint hecaseofanyconv i
cti
oninsuchtri
al,personcannotbe
sentencedforimpri
sonmentforaterm exceedi
ng1y ear
.

4.Appl
i
cat
ionoft
hecodeofcr
imi
nal
procedur
e[sect
ion438]

TheSpeci alCourtshallbedeemedt oacourtofsessi

onandtheper
sonconducti
nga
prosecut
ionaPubl icPr osecutorandtheprovi
si
onoftheCodeofCrimi
nalProcedur
e,
1973shall appl
yaccordinglytoproceedi
ngbef
oreaSpecial
Court

5.Appeal
/Rev
isi
onsf
rom Speci
alCour
tst
oHi
ghCour
ts

Inter
msofSect ion437oft heCompani esAct,2013,t
heHighCour twit
hinwhose
j
uri
sdict
ionSpeci
alCour
tweretr
yingcasesandpassedsuchorder
,wil
lhaveapowerto
ent
ert
ainappealorappl
i
cat
ionforrevi
sionagai
nst/oftheor
derpassedbytheSpecial
Cour
ts.

CONCLUSI
ON:

Thedel egat
ionofpowersbyCentr
alGov ernmentisdonei nordertoensur
esmoot
h
functi
oningofbusiness.Theadmini
str
ativ
er esponsibi
li
ti
escanbedecentral
i
zedi
n
orderachiev
especi
ali
zati
onofwor
kandr emov ebott
lenecksfr
om thesy
stem.
TheCent r
alGover
nmenthasbeenal soempoweredunderSect
ion458tor
evokesuch
delegat
ionofpowersort
oexerci
set hepowersi
tsel
fifi
tisoft
heopini
ont
hatiti
sfor
thebett
ermentoft
hepubli
candstakehol
dersatl
arge.
REFRENCES:
 htt
ps:/
/taxguru.in/company -l
aw/ delegation-powers-r
egi onal-
direct
or s-
act-
2013.html
 htt
ps:/
/www. indiafil
ings.com/learn/national-company -l
aw-tri
bunal-powers-j
urisdi
cti
on/
 htt
p:/
/buddingcor pprofessionalsi
ndia.blogspot .
com/ 2013/ 11/special-
court
s-under-
companies-act-2013. ht
ml
 htt
ps:/
/blog.i
pleader s.i
n/power-functions-regist
rar
-of-compani es/
 htt
ps:/
/taxguru.in/company -l
aw/ fr
aud- i
nv esti
gati
on-office-
power s-companies-act-
2013.
html

BOOKS:

 TaxmanCompanyl
aw ACompr
ehensi
veTextBookonCompani
esAct2013as

amendedbycompani
es(
Amdt
.)Act2019:
Dr.G.
KKapoor

STATUTES:

THECOMPANI
ESACT,
2013asamendedbyTheCompani
esAct
,2019(
No.22of2019)
,

dt
.31-
7-2019