Professional Documents
Culture Documents
Attachment Video 1 - Chapter XXVII - NCLT and NCLAT PDF Lyst6516
Attachment Video 1 - Chapter XXVII - NCLT and NCLAT PDF Lyst6516
www.edutap.co.in
Introduction
Example: If director of company is appointed though he is disqualified then this would be adjudicated by NCLT as in
whether he was really disqualified or not and NCLT will decide the punishment in case of any wrongdoing
Quasi Judicial Body: It is an entity such as an arbitrator or tribunal board which has powers and procedures resembling
those of a court of law or judge
Note: Only the insolvency resolution and liquidation for corporates under Insolvency and Bankruptcy Code, 2016 is handled
by NCLT, the insolvency resolution and liquidation for Partnership firms and individuals is handled by Debt Recovery
Tribunal
Introduction
Appeals Against orders of NCLT are made to NCLAT. Its just like appeals of high
court being challenged in supreme court
Company
1. NCLAT is also the Appellate Tribunal for hearing appeals against the orders
passed by Insolvency and Bankruptcy Board of India under Section 202 and
NCLAT Section 211 of IBC
Appeals Against orders
2. NCLAT is also the Appellate Tribunal to hear and dispose of appeals against
of IBB and CCI and
order passed by the Competition Commission of India (CCI) under section 53N
NFRA
of competition Act
3. NCLAT is also the Appellate Tribunal for Orders passed by NFRA (National
Financing Reporting Authority)
Introduction
www.edutap.co.in
Companies Act 2013 -> Section 409 – NCLT and NCLAT
For President
A person who is or has been a Judge of a High Court for five years
Question: Can a person with 5 years of experience in Supreme court be eligible for this post?
Ans: The law does not mention about this, but logical inference shall be that anybody having higher qualification
shall also be eligible
www.edutap.co.in
Companies Act 2013 -> Section 409 – NCLT and NCLAT
Judicial Member
For 3rd point, the experience of person in holding any judicial office or as a member of any tribunal shall also be
counted
www.edutap.co.in
Companies Act 2013 -> Section 409 – NCLT and NCLAT
Technical Member
1. Member of the Indian Corporate Law Service or Indian Legal Service for at least fifteen years and has been
holding the rank of Secretary or Additional Secretary to the Government of India or
5. Person who is capable and has professional experience of not less than fifteen years in industrial finance,
industrial management, industrial reconstruction, investment and accountancy or
6. Presiding officer of a Labor Court, Tribunal or National Tribunal constituted under the Industrial Disputes Act,
1947 for at least 5 years
www.edutap.co.in
Companies Act 2013 -> Section 409 – NCLT and NCLAT
Judicial Technical
Members Members
www.edutap.co.in
Concept Check
1. NCLT under company Law and section 61 of Insolvency and Bankruptcy Code
2. Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC
3. Competition Commission of India
4. All the above
Ans: Option 4
Ans: Option 1
www.edutap.co.in
Concept Check
Which of the following is min qualification for a person to be appointed President of NCLT?
1. Judge of District Court for 10 Years
2. Judge of Hight Court for 5 Years
3. Judge of High Court for 10 years
4. Either 1 or 2
Ans: Option 2
Ans: Option 5
www.edutap.co.in
Companies Act 2013 -> Section 410 – NCLT and NCLAT
www.edutap.co.in
Companies Act 2013 -> Section 411 – NCLT and NCLAT
Chairperson
A person who is or has been a Judge of the Supreme Court or the Chief Justice of a High Court.
Judicial Member
Judge of a High Court or is a Judicial Member of the Tribunal for five years.
Technical Member
Professional experience of not less than twenty-five years in industrial finance, industrial management, industrial
reconstruction, investment and accountancy
www.edutap.co.in
Companies Act 2013 -> Section 411 – NCLT and NCLAT
www.edutap.co.in
Companies Act 2013 -> Section 412 – NCLT and NCLAT
www.edutap.co.in
Companies Act 2013 -> Section 412 – NCLT and NCLAT
They shall be appointed by Govt. of India after consultation with the Chief Justice of India.
www.edutap.co.in
Companies Act 2013 -> Section 412 – NCLT and NCLAT
1. Chief Justice of India or his nominee who shall also be the Chairperson of the committee
2. Senior Judge of the Supreme Court or Chief Justice of High Court— Member;
3. Secretary in the Ministry of Corporate Affairs—Member and Convener
4. Secretary in the Ministry of Law and Justice—Member
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
Note: In case of tie during voting, the chairperson shall have casting vote
Casting vote is an extra vote given by a chairperson to decide an issue when the votes on each side are equal.
www.edutap.co.in
Concept Check
www.edutap.co.in
Concept Check
www.edutap.co.in
Companies Act 2013 -> Section 413 – NCLT and NCLAT
Term of Office of President, Chairperson and Other Members of NCLT and NCLAT
Members including President – Term is of 5 years and can be re-appointed for another term of 5 years
Member may retain his lien with his parent cadre or Ministry or Department while holding office as such for a period not
exceeding one year
Lien: A privilege granted by some employers to employees assuring them that they will have their jobs held while absent.
www.edutap.co.in
Companies Act 2013 -> Section 413 – NCLT and NCLAT
Term of Office of President, Chairperson and Other Members of NCLT and NCLAT
Members including Chairperson – Term is of 5 years and can be re-appointed for another term of 5 years
Member may retain his lien with his parent cadre or Ministry or Department while holding office as such for a period not
exceeding one year
Lien: A privilege granted by some employers to employees assuring them that they will have their jobs held while absent.
www.edutap.co.in
Companies Act 2013 -> Section 414 – NCLT and NCLAT
The salary, allowances and other terms and conditions of service of the Members of the Tribunal and the Appellate
Tribunal shall be such prescribed
In case of NCLAT
In case of NCLT
www.edutap.co.in
Companies Act 2013 -> Section 415 – NCLT and NCLAT
If the office of President or Chairperson falls Vacant due to death or resignation, then the senior most member shall act as
the President or the Chairperson until the date on which a new President or Chairperson appointers as per procedure
joins the office
If the President or the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, then
the senior-most Member shall discharge the functions of the President or the Chairperson until the date on which the
President or the Chairperson resumes his duties.
www.edutap.co.in
Companies Act 2013 -> Section 416 – NCLT and NCLAT
Resignation of Members
All the members including President and Chairperson can resign by giving a notice to Central government
The member shall continue to hold office after the resignation till the any of the following occurs
www.edutap.co.in
Companies Act 2013 -> Section 417 – NCLT and NCLAT
Removal of Members
The Central Government may, after consultation with the Chief Justice of India, remove any member including president
and chairperson who
www.edutap.co.in
Companies Act 2013 -> Section 417 – NCLT and NCLAT
The Central Government in consultation with CJI can suspend the concerned member from office till the report of Judge is
given to central government and Orders are passed by central govt. based on that report
www.edutap.co.in
Companies Act 2013 -> Section 418 – NCLT and NCLAT
The Central Government in consultation with the Tribunal and the Appellate Tribunal must provide them with such officers
and other employees as may be necessary for the exercise of the powers and discharge of the functions of the Tribunal and
the Appellate Tribunal.
www.edutap.co.in
Concept Check
The single term of members of NCLT and NCLAT is _____years and they can reappointed for another ____term(s) of 5 years
1. 5,0
2. 5,1
3. 5,2
4. 5,5
Ans: Option 2
Member of NCLT who is not a President and Member of NCLAT who is not a chairperson can serve uptil ___ and ____age
respectively
1. 65,67
2. 67,70
3. 60,65
4. 58,60
Ans: Option 1
www.edutap.co.in
Concept Check
If the office of President or Chairperson falls Vacant due to death or resignation, then the ____member shall act as the
President or the Chairperson until the date on which a new President or Chairperson appointers as per procedure joins the
office
1. Senior Most
2. Newly Elected
3. Recently Retired
4. Newly Appointed
Ans: Option 1
www.edutap.co.in
Thanks
www.edutap.co.in