ADMINISTRATION OF COMPANY

LAW
SUBJECT: CORPORATE LAW
TEAM INTRODUCTION
MEMBER I: KUNAL ARORA
Roll No.: 2001
Email ID: kunalarora2001.2021@hinducollege.ac.in

MEMBER II: ARJUN THAKUR

Roll No.: 105
Email ID: arjunthakur105.2021@hinducollege.ac.in

MEMBER III: GAURANSH JAIN

Roll No.: 1979
Email ID: gauranshjain1979.2021@hinducollege.ac.in
 TOPIC INTRODUCTION

National Company Law Tribunal (NCLT) and National Company Law

Appellate Tribunal (NCLAT)

The Companies Act, 2013 provides for the constitution of NCLT and NCLAT
and lays down its composition and powers under sections 407 to 434.

The Central Government has constituted NCLT under section 408 of the
Companies Act, 2013 with effect from 1st June, 2013.
The establishment of the NCLT consolidates the corporate jurisdiction of the
following authorities:
1. Company Law Board
2. Board for Industrial and Financial Reconstruction
3. The Appellate Authority for Industrial and Financial Reconstruction.
4. Jurisdiction and powers relating to winding up restructuring and other
such provisions, vested in the High Courts.

With the establishment of the NCLT and NCLAT, the Companies Law Board
under the Companies Act, 1956 stand dissolved.
DIFFERENCE BETWEEN NCLT & NCLAT
01
The NCLT has primary
jurisdiction whereas
NCLAT has appellate
jurisdiction.
02
Evidence and witnesses are generally
presented before NCLT for taking the
decisions and NCLAT generally
reviews decisions of NCLT and checks
it on a point of law or fact.

03 04
Fact finding and evidence collection is NCLAT is a higher quasi-
primarily a task of Tribunal whereas the judicial body than NCLT.
Appellate Tribunal decide cases based
on already collected evidences and
witnesses.
COMPOSITION OF NCLT & NCLAT
The National Company Law Tribunals consists of a
President and such number of Judicial and Technical
Members not exceeding sixty two, as the central
government deems fit. The President and every other
member shall hold office for a term of 5 years from the
date but shall be eligible for re-appointment.

The National Company Law AppellateTribunal is

headed by a Chairperson and members not exceeding
11 for hearing appeals against the orders of the
Tribunal.
COMPOSITION OF
Technical Member:
NCLT
President:
The President shall be a person who is or has been a
Judge of a High Court for five years.
Judicial Member:
A judicial member shall be person, who –
(a) is or has been 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 as an advocate of a
court or held a judicial office or as member of a
tribunal.
A technical member shall be a person who –
(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 as Joint Secretary or above: 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, etc. 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.
CONSTITUTION OF APPELLATE TRIBUNAL

(Section 410)
QUALIFICATIONS FOR APPELLATE TRIBUNAL [SECTION 411]
Chairperson: a person who is or has been a Judge of the Supreme Court or the Chief
Justice of a High Court.

Judicial Member: a person who is or has been a Judge of a High Court or is a Judicial
Member of the Tribunal for five years.

Technical Member: 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.
SELECTION OF MEMBERS (Section 412)
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.

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.
The Secretary, Ministry of Corporate Affairs shall be the Convener of the Selection Committee.
 TERMS OF OFFICE (Section 413)
TRIBUNAL APPELLATE TRIBUNAL

The President and every other Member:- five The chairperson or a Member:- five years but
years, but shall be eligible for reappointment for shall be eligible for re-appointment for another
another term of five years. term of five years.

A Member of the Tribunal shall hold office as A Member of the Appellate Tribunal shall hold
such until he attains, office as such until he attains,

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

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

A person who has not completed fifty years of age A person who has not completed fifty years of age
shall not be eligible for appointment as Member. shall not be eligible for appointment as Member.
POWERS AND PROCEDURES
01
Any person aggrieved by an
order or decision of the
tribunal ay prefer an
appeal to the Appellate
Tribunal.
02
All proceedings before the Tribunal
or the Appellate tribunal shall be
deemed to be judicial proceedings
within the Indian Penal Code.

03 04
The Tribunals shall not be bound by the The Tribunal shall have

procedure laid down in the Code of power to review its own

Civil Procedure, 1908, but shall be orders.

guided by the principles of natural
justice. Tribunals shall have power to
regulate their own procedure.
POWERS VESTED IN NCLT
1. Class-action suits
2. Deregistration of companies
3. Compounding of offences
4. Change in Financial Year
5. Redressal for deposits with the companies
6. Reopening of Accounts and Revision of Financial
Statements
7. To order investigation against the company
8. To investigate into the ownership of the company
SPECIAL COURTS
Special courts are formed for the purpose of providing speedy trial and disposal of
offences punishable under the Companies Act, 2013 with imprisonment of two years or
more.
Sections 435 to 446 of the Companies Act, 2013 contain provisions on the special courts.
ESTABLISHMENT OF SPECIAL COURT
1.As per section 435(1) ol the Companies Act, 2013, the Central Government may establish
as many special courts as may be necessary to provide speedy trial of offences punishable
under the Companies Ac, 2013.
2. A Special Court shall consist of a single Judge who shall be appointed by the Central
Government with the concurrence of the Chief Justice of the High Court within whoge
jurisdiction the Judge to be appointed is working [Section 435(2)].
3. The Judge of a "special court" must be a person holding an office of aSessions Judge or an
Additional Sessions Judge. [Section 435(3)]
OFFENCES TRIABLE BY SPECIAL

COURTS
As per the provisions of the Companies Act, 2013, following offences are Triable by
Special Courts:
01 Offences for which the Companies Aet, 2043, provides kêr imprisonment of 2
years or more.
02 Cases forwarded by a Magistrate for any offense committed under the
Companies Act, 2013.
03
Try at the same trial an offence for which an accused may be charged under
CrPC in addition to an offence under the Companies Act, 2013.
04 It may try in a summary way, any olfence under the Companies Act, 2013, which
is punishable with imprisonment for a term not exceeding 3 years, provided that in
the case of any conviction in such trial, person cannot be sentenced for
imprisonment for a term exceeding 1 year.
 APPEALS FROM
COMPUNDING

SPECIAL COURTS TO
UNDER SPECIAL

HIGH COURTS COURTS

For appeal and revision, The

High Court have been granted
jurisdiction, as if the Special
Court within the local limits of
the jurisdiction of the High
Court were a Court of Session
trying cases within the local
limits of the jurisdiction of the
High Court.
The offences under the act, for
which the punishment is
"imprisonment or fine, or with
imprisonment or fine or with
both" are compoundable only
with the permission of the
special court.
Thank you for your attention!
Any questions?