Sections 409, 410, 411, 412, 435 and 438 - Companies Amendment Act 2017
The Companies (Amendment) Act, 2017 (Act 1 of 2018) amended provisions of the Companies Act, 2013 dealing principally with qualifications and selection for the National Company Law Tribunal and National Company Law Appellate Tribunal, appellate jurisdiction, and the constitution and status of Special Courts.
Section 409 - Qualification of President and Members of Tribunal
What section 409 covers: Section 409 of the Companies Act, 2013 concerns qualifications for the President and members of the National Company Law Tribunal (NCLT).
Section 82 of the Companies (Amendment) Act, 2017 amended section 409(3). In clause (a), the earlier service-related wording was replaced so that the provision referred to a person who had been holding the rank of Secretary or Additional Secretary to the Government of India. Clause (e) was substituted to cover a person of proven ability, integrity and standing with special knowledge and at least fifteen years of professional experience in industrial finance, industrial management, industrial reconstruction, investment and accountancy.
Section 410 - Constitution of Appellate Tribunal
What section 410 covers: Section 410 provides for constitution of the National Company Law Appellate Tribunal (NCLAT).
Section 83 of the 2017 Amendment Act expanded the provision by replacing the reference to appeals from "orders of the Tribunal" with a reference to orders of the Tribunal or of the National Financial Reporting Authority.
Section 411 - Qualifications of NCLAT Chairperson and Members
What section 411 covers: Section 411 concerns qualifications of the Chairperson and members of the Appellate Tribunal.
Section 84 substituted sub-section (3), prescribing that a technical member be a person of proven ability, integrity and standing with special knowledge and professional experience of not less than twenty-five years in industrial finance, industrial management, industrial reconstruction, investment and accountancy.
Section 412 - Selection of Members of Tribunal and Appellate Tribunal
What section 412 covers: Section 412 deals with the selection process for members of the Tribunal and Appellate Tribunal.
Section 85 substituted sub-section (2) and inserted sub-section (2A). The amendment provided for a Selection Committee comprising the Chief Justice of India or nominee as Chairperson, a senior Supreme Court Judge or Chief Justice of a High Court, the Secretary in the Ministry of Corporate Affairs, and the Secretary in the Ministry of Law and Justice. In the event of equality of votes, the Chairperson was given a casting vote.
Section 435 - Establishment of Special Courts
What section 435 covers: Section 435 concerns establishment or designation of Special Courts for speedy trial of offences under the Companies Act.
Section 86 substituted section 435. It authorised the Central Government, by notification, to establish or designate as many Special Courts as necessary. For offences punishable with imprisonment of two years or more, the Special Court was to consist of a single judge holding office as a Sessions Judge or Additional Sessions Judge. For other offences, it was to consist of a Metropolitan Magistrate or Judicial Magistrate of the First Class, appointed by the Central Government with the concurrence of the Chief Justice of the jurisdictional High Court.
Section 438 - Application of Criminal Procedure to Special Courts
What section 438 covers: Section 438 addresses the procedural status of a Special Court for criminal proceedings under the Companies Act.
Section 87 amended section 438 by replacing the words referring only to a deemed Court of Session with wording that also covered the court of a Metropolitan Magistrate or Judicial Magistrate of the First Class, as applicable.