Companies Act Section 412 — Selection of Members of Tribunal and Appellate Tribunal

CHAPTER XXVII NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE TRIBUNAL

Commercial / Corporate

Summary

Sub-section (1) covers the appointment of the President of the Tribunal, and the chairperson and Judicial Members of the Appellate Tribunal. These appointments are made only after consulting the Chief Justice of India.

Sub-section (2) covers the appointment of the Members of the Tribunal and the Technical Members of the Appellate Tribunal. These appointments are made based on the recommendation of a Selection Committee, which is made up of four people: the Chief Justice of India or their nominee, who serves as the Chairperson; a senior Judge of the Supreme Court or a Chief Justice of a High Court; the Secretary in the Ministry of Corporate Affairs; and the Secretary in the Ministry of Law and Justice.

Sub-section (2A) deals with voting in the Selection Committee. If there is a tie in votes on any matter during a meeting, the Chairperson of the Committee gets an extra, deciding vote to break the tie.

Sub-section (3) states that the Secretary in the Ministry of Corporate Affairs acts as the Convener of the Selection Committee, meaning that person is responsible for organising and calling its meetings.

Sub-section (4) gives the Selection Committee the power to decide its own procedure for recommending people for appointment under sub-section (2).

Sub-section (5) provides that an appointment of a Member of the Tribunal or the Appellate Tribunal will not be considered invalid just because there was a vacancy in the Selection Committee or some defect in how the Committee was formed.

Official Text

(1) 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. 6[

(2) 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 Chief Justice of High Court— Member;

(c) Secretary in the Ministry of Corporate Affairs—Member; and

(d) Secretary in the Ministry of Law and Justice—Member.

(2A) Where in a meeting of the Selection Committee, there is equality of votes on any matter, the Chairperson shall have a casting vote.]

(3) The Secretary, Ministry of Corporate Affairs shall be the Convener of the Selection Committee.

(4) The Selection Committee shall determine its procedure for recommending persons under sub-section (2).

(5) 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.