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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.
SALARY AND ALLOWANCES (SECTION 415):
The salary, allowances and other terms and conditions of service of the Members of the Tribunal and the Appellate Tribunal shall be such as may be prescribed. Neither the salary and allowances nor the other terms and conditions of service of the Members shall be varied to their disadvantage after their appointment.
ACTING PRESIDENT OR CHAIRPERSON (SECTION 415):
In the event of the occurrence of any vacancy in the office of the President or the Chairperson by reason of his death, resignation or otherwise, the senior-most Member shall act as the President or the Chairperson, until the date on which a new President or Chairperson appointed in accordance with the provisions of this Act to fill such vacancy enters upon his office.
When the President or the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Member shall discharge the functions of the President or the Chairperson, as the case may be, until the date on which the President or the Chairperson resumes his duties.
RESIGNATION OF MEMBERS (SECTION 416):
The President, the Chairperson or any Member may, by notice in writing under his hand addressed to the Central Government, resign from his office. The President, the Chairperson, or the Member shall continue to hold office until the expiry of three months from the date of receipt of such notice by the Central Government or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earliest.
REMOVAL OF MEMBERS (SECTION 417):
The Central Government may, after consultation with the Chief Justice of India, remove from office the President, Chairperson or any Member, who—
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such President, the Chairperson, or Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such President, the Chairperson or Member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest.
The President, the Chairperson or the Member shall not be removed on any of the grounds specified in clauses (b) to (e) without giving him a reasonable opportunity of being heard.
The President, the Chairperson or the Member shall not be removed from his office except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the Central Government in which such President, the Chairperson or Member had been informed of the charges against him and given a reasonable opportunity of being heard.
The Central Government may with the concurrence of the Chief Justice of India, suspend from office, the President, the Chairperson or member against whom the reference has been made.
The Central Government shall, after consultation with the Supreme Court, make rules to regulate the procedure for the inquiry on the ground of proved misbehaviour or incapacity.
STAFF OF TRIBUNALS (SECTION 418):
The Central Government shall, in consultation with the Tribunal and the Appellate Tribunal, provide the Tribunal and the Appellate Tribunal, as the case may be, 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.
The officers and other employees of the Tribunal and the Appellate Tribunal shall discharge their functions under the general superintendence and control of the President, or as the case may be, the Chairperson, or any other Member to whom powers for exercising such superintendence and control are delegated by him.
The salaries and allowances and other conditions of service of the officers and other employees of the Tribunal and the Appellate Tribunal shall be such as may be prescribed.
DISSOLUTION OF COMPANY LAW BOARD (SECTION 466):
The Board of Company Law Administration shall stand dissolved on constitution of the Tribunal and the Appellate Tribunal.
Subject to and according to other provisions of this Section; President, Chairperson, Members, Officers, Employees, shall become President, Chairperson, Members, Officers, Employees of the Tribunal and Appellate Tribunal.
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