Amended and updated notes on section 411 of Companies Act 2013. Detail discussion on provisions and rules related to qualifications of chairperson and Members of Appellate Tribunal.
Chapter XXVII (Sections 407-434) of the Companies Act, 2013 (CA 2013) deals with the provisions related to National Company Law Tribunal and Appellate Tribunal i.e. NCLT and NCLAT. Section 411 of CA 2013 provides for qualifications of chairperson and Members of Appellate Tribunal.
Recently, we have discussed in detail section 410 (Constitution of Appellate Tribunal) of CA 2013. Today, we learn the provisions of section 411 of the Companies Act 2013.
The provisions of section 411 are effective from 12th September, 2013. You may refer Notification No. S.O. 2754(E) dated 12-09-2013. In this article, you will learn detail of the provisions of section 411 the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXVII |
| Chapter Name | National Company Law Tribunal and Appellate Tribunal |
| Section No. | 411 |
| Section Name | Qualifications of chairperson and Members of Appellate Tribunal |
| Monthly Updated Edition | Company Law PDF |
Section 411 of Companies Act 2013: Qualifications of chairperson and Members of Appellate Tribunal
Section 411 shall come into force on 12th September, 2013 vide Notification No. S.O. 2754(E) dated 12.09.2013.
(1) 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.
(2) 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.
(3) A technical member shall be a person of proven ability, integrity and standing having special knowledge and professional experience of not less than twenty-five years in industrial finance, industrial management, industrial reconstruction, investment and accountancy.
Section 411(1)
Section 411(1) Qualification of Chairperson: The chairperson shall be a person who is or has been a:
- Judge of the Supreme Court (SC); or
- Chief Justice of a High Court (HC).
Thus, Judge of SC or Chief Justice of HC may become Chairman of Appellate Tribunal.
Did you know? Shri Justice Sudhansu Jyoti Mukhopadhaya has been appointed as the first Chairperson of NCLAT w.e.f. 1st June, 2016. He had hold office for a term of 5 years i.e. till 31st May 2021.
In his capacity as the Chairperson, he has delivered judgments explaining different provisions of newly enacted Insolvency and Bankruptcy Code (IBC), 2016 on which there is no precedent.
He was born on 15th March, 1950. On 13th September 2011 he was elevated to the Supreme Court of India from where he retired on 14th March 2015.
Section 411(2)
Section 411 (3) Qualification of Judicial Member: A Judicial Member shall be a person who is or has been a:
- Judge of a HC; or
- Judicial Member of the Tribunal for 5 years.
Section 411(3)
Section 411 (3) Qualification of Technical Member: A technical member shall be a person of proven ability, integrity and standing having special knowledge and professional experience of not less than 25 years in industrial finance, industrial management, industrial reconstruction, investment and accountancy.
The entire sub-section (3) of Section 411 was substituted by the Companies (Amendment) Act, 2017 w.e.f. 9th February 2018. Therefore, the technical member need not have experience in law, labour matters, or such other disciplines related to management, conduct of affairs, revival, rehabilitation and winding up of companies.
Definition of Appellate Tribunal has been provided in clause (4) of section 2 of the Companies Act 2013. Accordingly, Appellate Tribunal means the National Company Law Appellate Tribunal (NCLAT) constituted under section 410. You may share your experience for updated notes on section 411 of Companies Act 2013.