Sections 415 and 416 of Companies Act 2013: Acting President and Resignation of Members
Sections 415 and 416 form part of Chapter XXVII of the Companies Act, 2013, which deals with the National Company Law Tribunal and the National Company Law Appellate Tribunal. Section 415 provides continuity when the office of the President of the Tribunal or Chairperson of the Appellate Tribunal is vacant, or when the office-holder is temporarily unable to perform the functions of office. Section 416 deals with resignation by the President, Chairperson or any Member.
Updated: 17 September 2026
Section 415 - Acting President and Chairperson of Tribunal or Appellate Tribunal
Meaning: Section 415 is a continuity provision. It identifies who performs the functions of the President of the National Company Law Tribunal (NCLT) or the Chairperson of the National Company Law Appellate Tribunal (NCLAT) when there is a vacancy or a temporary inability to discharge functions.
Section 415(1): Vacancy in office
Where a vacancy occurs in the office of the President or Chairperson because of death, resignation or otherwise, the senior-most Member acts as President or Chairperson, as applicable, until the newly appointed President or Chairperson enters office.
Section 415(2): Temporary inability to discharge functions
Where the President or Chairperson cannot discharge functions because of absence, illness or another cause, the senior-most Member discharges those functions until the President or Chairperson resumes duties.
The two sub-sections address different situations. Sub-section (1) concerns a vacancy in the office itself. Sub-section (2) concerns temporary inability while the incumbent continues to hold the office.
Current relevance: Section 415 continues to be used for interim leadership of the NCLT. For example, Ministry of Corporate Affairs notifications issued in 2026 invoked Section 415(1) when assigning the senior-most Judicial Member to act as President of the NCLT pending a regular appointment.
Section 416 - Resignation of Members
Meaning: Section 416 prescribes the statutory method by which the President, Chairperson or any Member may resign from office. The resignation is made by a written notice addressed to the Central Government.
When does the office-holder cease to hold office?
After giving the resignation notice, the President, Chairperson or Member continues to hold office until the earliest of the following events: three months expire from the date the Central Government receives the notice; a duly appointed successor enters office; or the existing term of office expires.
This proviso prevents an immediate administrative vacuum merely because a resignation notice has been submitted. It links cessation of office to the earliest of the three statutory events specified above.
Difference between Sections 415 and 416
| Provision | Subject | Core effect |
|---|---|---|
| Section 415 | Acting President or Chairperson | Ensures continuity by placing functions with the senior-most Member during a vacancy or temporary inability. |
| Section 416 | Resignation of President, Chairperson or Member | Provides the resignation procedure and determines how long the resigning office-holder continues in office. |
Practical legal effect
Read together, Sections 415 and 416 support continuity in the functioning of the Tribunal and Appellate Tribunal. Section 416 regulates when a resignation takes effect for purposes of holding office, while Section 415 provides the mechanism for an acting President or Chairperson when a vacancy arises and for temporary discharge of functions when the incumbent is unable to act.
Official resources
For the authoritative statutory text and current corporate-law notifications, refer to the Companies Act, 2013 on India Code and the Ministry of Corporate Affairs. Tribunal information is available from the National Company Law Tribunal and National Company Law Appellate Tribunal.
Legal note: This page is an explanatory article. For a filing, proceeding or opinion, verify the current statutory text, applicable rules, notifications and judicial decisions relevant to the facts of the matter.