{"id":6673,"date":"2015-06-25T10:06:00","date_gmt":"2015-06-25T10:06:00","guid":{"rendered":"http:\/\/localhost\/sccblog\/?p=6673"},"modified":"2015-11-23T18:00:15","modified_gmt":"2015-11-23T12:30:15","slug":"sections-409-3-a-409-3-c-411-3-and-412-2-of-the-companies-act-2013-invalidated","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2015\/06\/25\/sections-409-3-a-409-3-c-411-3-and-412-2-of-the-companies-act-2013-invalidated\/","title":{"rendered":"Sections 409(3)(a), 409(3)(c), 411(3) and 412(2) of the Companies Act, 2013 invalidated"},"content":{"rendered":"<p><b><span lang=\"EN-US\">Supreme Court:<\/span><\/b><span lang=\"EN-US\"> Considering various provisions regarding the <\/span><span lang=\"EN-US\">National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) formed under<\/span><span lang=\"EN-US\"> the Companies Act, 2013, the Constitution Bench comprising of H.L. Dattu, CJ, Dr. A.K. Sikri, Arun Mishra, R.F. Nariman and Amitava Roy, JJ held the provisions on qualifications for appointment of a technical member and also <\/span><span lang=\"EN-US\">the <\/span><span lang=\"EN-US\">provisions relating to the constitution of the Selection Committee<\/span><span lang=\"EN-US\"> to be invalid, while establishing the validity of the NCLT and NCLAT.<\/span><\/p>\n<p><span lang=\"EN-US\">The present case which was represented by A.P. Datar was in reference to the striking down of certain <\/span><span lang=\"EN-US\">provisions of Companies Act, 2013 which were same as that of the Companies Act, 1956, with particular emphasis on Chapter XXVII i.e. Sections 408, 409, 411(3), 412, 413, 425, 431 and 434, which were enacted without incorporating the amendments suggested by this Court <\/span><span lang=\"EN-US\">in <\/span><i><span lang=\"EN-US\">Union of <\/span><\/i><i><span lang=\"EN-US\">India <\/span><\/i><span lang=\"EN-US\">v.<i> <\/i><\/span><i><span lang=\"EN-US\">R. Gandhi,<\/span><\/i><i> <\/i><span lang=\"EN-US\">(2010) 11 SCC 1.<\/span><\/p>\n<p><span lang=\"EN-US\">The Court while reiterating the 2010 judgment clearly upheld the validity of the constitution of the NCLT and the NCLAT. While striking down the provisions dealing with qualifications for \u00a0appointment of a technical member, the Court stated that a Technical Member is supposed to possess experience in the field to which the Tribunal relates to, and since members of Indian Company Law Service are not experts of their field, they are not qualified to be technical members. T<\/span><span lang=\"EN-US\">he Court also held that the number of the members of the Selection Committee should be reduced from five to four and a casting vote should be provided to the Chairperson to remove the predominance of the bureaucracy. <\/span><span lang=\"EN-US\"><i>Madras Bar Association<\/i> v <i>Union of India<\/i>, <a href=\"http:\/\/www.scconline.com\/LoginForNewsLink\/2015_SCC_OnLine_SC_484 \">2015 SCC OnLine SC 484<\/a>, decided on 14.05.2015.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court: Considering various provisions regarding the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) formed under the 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Company Law Tribunal Constituted \u2013 New Perspectives for Dispute Resolution","author":"Sucheta","date":"June 4, 2016","format":false,"excerpt":"The Ministry of Corporate Affairs (MCA) vide a notification dated 1 June 2016 has constituted the National Company Law Tribunal (NCLT) and its appellate authority, the National Company Law Appellate Tribunal (NCLAT) with effect from such date. The principal bench of the NCLT is to be located at New Delhi,\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/DSC_4762-e1474523869607.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":237035,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/09\/perjury-in-the-national-company-law-tribunal-and-the-national-company-law-appellate-tribunal-an-opinion\/","url_meta":{"origin":6673,"position":1},"title":"Perjury in the National Company Law Tribunal and the National Company Law Appellate Tribunal: An Opinion","author":"Bhumika Indulia","date":"October 9, 2020","format":false,"excerpt":"by Amir Arsiwala*\u00a0 & Ishan J Ravindranath**","rel":"","context":"In &quot;OP. ED.&quot;","block_context":{"text":"OP. ED.","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/10\/ncdc.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/10\/ncdc.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/10\/ncdc.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/10\/ncdc.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/10\/ncdc.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":50311,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/06\/03\/national-company-law-appellate-tribunal-nclat-constituted\/","url_meta":{"origin":6673,"position":2},"title":"National Company Law Appellate Tribunal (NCLAT) constituted","author":"Sucheta","date":"June 3, 2016","format":false,"excerpt":"The Ministry of Corporate Affairs has issued notification for constitution of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) with effect from today i.e. 1st June, 2016. Hon\u2019ble Justice S.J. Mukhopadhaya, Judge (Retd.), Supreme Court has joined as the Chairperson of the NCLAT and Hon\u2019ble\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/Press-Information-Bureau.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/Press-Information-Bureau.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/Press-Information-Bureau.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/Press-Information-Bureau.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/Press-Information-Bureau.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":95241,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/12\/31\/pending-winding-up-petitions-of-companies-which-have-not-been-served-before-high-court-shall-stand-transferred-to-national-company-law-tribunal\/","url_meta":{"origin":6673,"position":3},"title":"Pending winding up petitions of companies which have not been served before High Court shall stand transferred to National Company Law Tribunal","author":"Saba","date":"December 31, 2016","format":false,"excerpt":"Bombay High Court: In a case dealing with petitions pending admission before the High Court filed under the Companies Act, 1956 where winding up of a company was sought, the Single Bench of S.C. Gupte, J held that every winding up petition under clause (e) of Section 433 which is\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":237751,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/20\/nclat-if-objections-raised-in-regard-to-scheme-under-s-230-of-companies-act-2013-are-procedural-in-nature-can-they-be-overruled-tribunal-expounds\/","url_meta":{"origin":6673,"position":4},"title":"NCLAT | If objections raised in regard to &#8220;Scheme&#8221; under S. 230 of Companies Act, 2013 are procedural in nature, can they be overruled? Tribunal expounds","author":"Bhumika Indulia","date":"October 20, 2020","format":false,"excerpt":"National Company Law Appellate Tribunal (NCLAT):\u00a0A Division Bench of Justice Jarat Kumar Jain (Judicial Member) and Balvinder Singh (Technical Member) while addressing the present appeal observed that, Scheme under Section 230 of the Companies Act, 2013 cannot be used as method of rectification of the actions already taken. Appellant preferred\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":216342,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/07\/03\/nclat-nclt-has-jurisdiction-to-deal-with-all-issues-pertaining-to-rectification-of-register-of-members-and-questions-incidental-and-peripheral-thereto\/","url_meta":{"origin":6673,"position":5},"title":"NCLAT | NCLT has jurisdiction to deal with all issues pertaining to rectification of register of members, and questions incidental and peripheral thereto  \u00a0","author":"Bhumika Indulia","date":"July 3, 2019","format":false,"excerpt":"National Company Law Appellate Tribunal (NCLAT): A Coram of Justice A.I.S Cheema (Judicial Member) and Justice Balvinder Singh (Technical Member) set aside the judgment passed by National Company Law Tribunal, Hyderabad Bench (NCLT) and directed the cancellation of entry of the name of appellant in the register of member of\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/6673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=6673"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/6673\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/154914"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=6673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=6673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=6673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}