CONSTITUTION OF NATIONAL COMPANY LAW TRIBUNAL

I am not going to discuss much debated thing, whether National Company Law Tribunal ever be constituted. I am going to discuss provisions in this Act; whether they are applicable or going to be applicable or not.

DEFINITIONS (SECTION 407):

These definitions are self explanatory. There are two classes of members to the National Company Law Tribunal; Judicial Members and Technical Members. The Tribunal shall be headed by the President while the Appellate Tribunal by Chairperson.

CONSTITUTION OF NATIONAL COMPANY LAW TRIBUNAL (SECTION 408):

The Central Government shall by notification with effect from a specified date constitute a National Company Law Tribunal..

QUALIFICATION OF PRESIDENT AND MEMBERS (SECTION 409):

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 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 as an advocate of a court or held a judicial office or as member of a tribunal.

Technical Member:

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, 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.

CONSTITUTION OF APPELLATE TRIBUNAL (SECTION 410):

The Central Government shall by notification, constitute an National Company Law Appellate Tribunal, constituting of a Chairperson and not exceeding eleven members for hearing appeals against the orders of the Tribunal.

QUALIFICATIONS FOR APPELLATE TRIBUNAL (SECTION 411):

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.

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.

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.

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):

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.

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:

A person who has not completed fifty years of age shall not be eligible for appointment as Member. 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.

The chairperson or a Member of the Appellate Tribunal shall hold office 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.

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:

A person who has not completed fifty years of age shall not be eligible for appointment as Member. 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.

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