Sections 425, 426 and 427 of the Companies Act, 2013: Contempt, Delegation and Public Servants
Sections 425 to 427 form part of Chapter XXVII of the Companies Act, 2013 dealing with the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). They address three distinct matters: contempt jurisdiction, delegation of inquiry functions, and the public-servant status of Tribunal personnel.
Section 426 - Delegation of powers
Section 427 - Tribunal personnel as public servants
Practical meaning of these provisions
Section 425 - Power to punish for contempt
What the provision does: Section 425 confers on the Tribunal and the Appellate Tribunal the same jurisdiction, powers and authority in respect of contempt of themselves as a High Court has. For that purpose, they may exercise powers under the Contempt of Courts Act, 1971, subject to the statutory modifications stated in Section 425.
The provision treats references in the Contempt of Courts Act to a High Court as including the NCLT and NCLAT. It also adapts the reference to the Advocate-General in Section 15 of that Act to the Law Officer specified by the Central Government for this purpose.
Meaning of contempt power
In practical terms, the provision protects the authority and functioning of the NCLT and NCLAT by giving them statutory contempt jurisdiction. The source and limits of that jurisdiction must be read together with the Contempt of Courts Act, 1971.
Section 426 - Delegation of powers
What the provision does: The Tribunal or Appellate Tribunal may, by a general or special order and subject to conditions specified in that order, authorise an officer, employee or other authorised person to inquire into a matter connected with a proceeding or appeal and report back in the manner specified.
This is an enabling provision for fact-finding or inquiry connected with matters already before the Tribunal or Appellate Tribunal. The authority delegated, the conditions imposed and the manner of reporting depend on the relevant general or special order.
Section 427 - President, Members, officers and employees as public servants
What the provision does: Section 427 gives statutory public-servant status to the President, Members, officers and other employees of the Tribunal and to the Chairperson, Members, officers and other employees of the Appellate Tribunal.
The original Companies Act wording links that status to the meaning of "public servant" in Section 21 of the Indian Penal Code, 1860. Because the general criminal law framework has since changed, users should consult the current official text and applicable amendment or adaptation provisions when the precise criminal-law cross-reference is material.
Why Sections 425, 426 and 427 matter
- Section 425 gives the NCLT and NCLAT statutory authority to deal with contempt affecting their own proceedings and institutional authority.
- Section 426 permits structured delegation of an inquiry connected with a pending proceeding or appeal, while the Tribunal or Appellate Tribunal remains the forum receiving the report.
- Section 427 places specified NCLT and NCLAT office-holders and staff within the statutory public-servant framework.
Official legal resources
For filing, compliance or litigation, verify the current statutory text, amendments, notifications and rules from the Ministry of Corporate Affairs and India Code. Tribunal practice, orders and notices may also be checked on the NCLT and NCLAT official portals.
This article is a general explanation of the statutory provisions and is not a substitute for the current official text or professional advice in a particular proceeding.