Companies Act Section 409 — Qualification of President and Members of Tribunal
CHAPTER XXVII NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE TRIBUNAL
Commercial / Corporate
Summary
Sub-section (1) sets the qualification for the President of the Tribunal. The President must be a person who is currently a Judge of a High Court, or who has previously been a Judge of a High Court, for a total period of five years.
Sub-section (2) lists the qualifications required for appointment as a Judicial Member. A person is not qualified for this role unless they meet at least one of the conditions listed in clauses (a), (b), or (c).
Under clause (a) of sub-section (2), a person is qualified if they are, or have been, a judge of a High Court.
Under clause (b) of sub-section (2), a person is qualified if they are, or have been, a District Judge for at least five years.
Under clause (c) of sub-section (2), a person is qualified if they have been an advocate of a court for at least ten years. The Explanation attached to this clause clarifies that when calculating this ten-year period, any time the person spent holding judicial office, serving as a member of a tribunal, or holding any post under the Union or a State that requires special knowledge of law, is counted as part of the period, provided this time occurred after the person became an advocate.
Sub-section (3) lists the qualifications required for appointment as a Technical Member. A person is not qualified for this role unless they meet at least one of the conditions listed in clauses (a) through (f).
Under clause (a) of sub-section (3), a person is qualified if they have been a member of the Indian Corporate Law Service or the Indian Legal Service for at least fifteen years, and have been holding the rank of Secretary or Additional Secretary to the Government of India.
Under clause (b) of sub-section (3), a person is qualified if they are, or have been, in practice as a chartered accountant for at least fifteen years.
Under clause (c) of sub-section (3), a person is qualified if they are, or have been, in practice as a cost accountant for at least fifteen years.
Under clause (d) of sub-section (3), a person is qualified if they are, or have been, in practice as a company secretary for at least fifteen years.
Under clause (e) of sub-section (3), a person is qualified if they are a person of proven ability, integrity and standing, and have special knowledge and professional experience of not less than fifteen years in the fields of industrial finance, industrial management, industrial reconstruction, investment, and accountancy.
Under clause (f) of sub-section (3), a person is qualified if they are, or have been, for at least five years, a presiding officer of a Labour Court, Tribunal, or National Tribunal constituted under the Industrial Disputes Act, 1947.
Official Text
(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 1[and has been holding the rank of Secretary or Additional Secretary to the Government of India]; 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 2[
(e) is a person of proven ability, integrity and standing having special knowledge and professional experience of not less than fifteen years in industrial finance, industrial management, industrial reconstruction, investment and accountancy.]
(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 (14 of 1947).