Friday, August 19, 2016

Section 470 of Companies Act 2013

Section 470 of Companies Act 2013 :-

Power to remove difficulties.

1.     If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty:

Provided that no such order shall be made after the expiry of a period of five years from the date of commencement of section 1 of this Act.

2.     Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 470 Companies Act 1956 has been repealed.

Section 469 of Companies Act 2013

Section 469 of Companies Act 2013 :-

Power of Central Government to make rules.

1.     The Central Government may, by notification, make rules for carrying out the provisions of this Act.
2.     Without prejudice to the generality of the provisions of sub-section (1), the Central Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provision is to be or may be made by rules.
3.     Any rule made under sub-section (1) may provide that a contravention thereof shall be punishable with fine which may extend to five thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which such contravention continues.
4.     Every rule made under this section and every regulation made by Securities and Exchange Board under this Act, shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 469 Companies Act 1956 has been repealed.

Section 468 of Companies Act 2013

Section 468 of Companies Act 2013 :-

Powers of Central Government to make rules relating to winding up.

1.     The Central Government shall, make rules consistent with the Code of Civil Procedure, 1908 providing for all matters relating to the winding up of companies, which by this Act, are to be prescribed, and may make rules providing for all such matters, as may be prescribed.
2.     In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
              i.        as to the mode of proceedings to be held for winding up of a company by the Tribunal;

             ii.        for the voluntary winding up of companies, whether by members or by creditors;

            iii.        for the holding of meetings of creditors and members in connection with proceedings under section 230;

            iv.        for giving effect to the provisions of this Act as to the reduction of the capital;

             v.        generally for all applications to be made to the Tribunal under the provisions of this Act;

            vi.        the holding and conducting of meetings to ascertain the wishes of creditors and contributories;

           vii.        the settling of lists of contributories and the rectifying of the register of members where required, and collecting and applying the assets;

          viii.        the payment, delivery, conveyance, surrender or transfer of money, property, books or papers to the liquidator;

            ix.        the making of calls; and

             x.        the fixing of a time within which debts and claims shall be proved.

3.     All rules made by the Supreme Court on the matters referred to in this section as it stood immediately before the commencement of this Act and in force at such commencement, shall continue to be in force, till such time the rules are made by the Central Government and any reference to the High Court in relation to winding up of a company in such rules shall be construed as a reference to the Tribunal.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 468 Companies Act 1956 has been repealed.

Section 467 of Companies Act 2013

Section 467 of Companies Act 2013 :-

Power of Central Government to amend Schedules.

1.     Subject to the provisions of this section, the Central Government may, by notification, alter any of the regulations, rules, Tables, forms and other provisions contained in any of the Schedules to this Act.
2.     Any alteration notified under sub-section (1) shall have effect as if enacted in this Act and shall come into force on the date of the notification, unless the notification otherwise directs:

Provided that no such alteration in Table F of Schedule I shall apply to any company registered before the date of such alteration.

3.     Every alteration made by the Central Government under sub-section (1) shall be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the alteration, or both Houses agree that the alteration should not be made, the alteration shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done in pursuance of that alteration.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 467 Companies Act 1956 has been repealed.

Section 466 of Companies Act 2013

Section 466 of Companies Act 2013 :-

Dissolution of Company Law Board and consequential provisions.

1.     Notwithstanding anything contained in section 465, the Board of Company Law Administration constituted under the Companies Act, 1956 (hereafter in this section referred to as the Company Law Board) shall stand dissolved on the constitution of the Tribunal and the Appellate Tribunal:

Provided that until the Tribunal and the Appellate Tribunal is constituted, the Chairman, Vice-Chairman and Members of the Company Law Board immediately before the constitution of the Tribunal and the Appellate Tribunal, who fulfil the qualifications and requirements provided under this Act regarding appointment as President or Chairperson or Member of the Tribunal or the Appellate Tribunal, shall function as President, Chairperson or Member of the Tribunal or the Appellate Tribunal:

Provided further that every officer or other employee, who had been appointed on deputation basis to the Company Law Board, shall, on such dissolution,—

              i.        become officer or employee of the Tribunal or the Appellate Tribunal, if he fulfils the qualifications and requirements under this Act; and

             ii.        stand reverted to his parent cadre, Ministry or Department, in any other case:

Provided also that every officer and the other employee of the Company Law Board, employed on regular basis by that Board, shall become, on and from such dissolution the officer and other employee, respectively, of the Tribunal or the Appellate Tribunal with the same rights and privileges as to pension, gratuity and other like benefits as would have been admissible to him if he had continued to serve that Board and shall continue to do so unless and until his employment in the Tribunal or the Appellate Tribunal is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the Tribunal or the Appellate Tribunal, as the case may be:

Provided also that notwithstanding anything contained in the Industrial Disputes Act, 1947 or in any other law for the time being in force, any officer or other employee who becomes an officer or other employee of the Tribunal or the Appellate Tribunal under the preceding proviso shall not be entitled to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority:

Provided also that where the Company Law Board has etablished a provident fund, superannuation fund, welfare fund or other fund for the benefit of the officers and other employees employed in that Board, the monies relatable to the officers and other employees who have become officers or employees of the Tribunal or the Appellate Tribunal shall, out of the monies standing to the credit of such provident fund, superannuation fund, welfare fund or other fund, stand transferred to, and vest in, the Tribunal or the Appellate Tribunal, as the case may be, and such monies which stand so transferred shall be dealt with by the Tribunal or the Appellate Tribunal in such manner as may be prescribed.

2.     The persons holding the offices of Chairman, Vice-Chairman and Members, and officers and other employees of the Company Law Board immediately before the constitution of the Tribunal and the Appellate Tribunal who are not covered under proviso to sub-section (1) shall vacate their respective offices on such constitution and no such Chairman, Vice- Chairman and Members and officers or other employees shall be entitled to claim any compensation for the premature termination of the term of his office or of any contract of service, if any.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 466 Companies Act 1956 has been repealed.

Section 465 of Companies Act 2013

Section 465 of Companies Act 2013 :-

Repeal of certain enactments and savings.

1.     The Companies Act, 1956 and the Registration of Companies (Sikkim) Act, 1961 (hereafter in this section referred to as the repealed enactments) shall stand repealed:

Provided that the provisions of Part IX A of the Companies Act, 1956 shall be applicable mutatis mutandis to a Producer Company in a manner as if the Companies Act, 1956 has not been repealed until a special Act is enacted for Producer Companies:

Provided further that until a date is notified by the Central Government under subsection (1) of Section 434 for transfer of all matters, proceedings or cases to the Tribunal, the provisions of the Companies Act, 1956 in regard to the jurisdiction, powers, authority and functions of the Board of Company Law Administration and court shall continue to apply as if the Companies Act, 1956 has not been repealed:

Provided also that provisions of the Companies Act, 1956 referred in the notification issued under section 67 of the Limited Liability Partnership Act, 2008 shall, until the relevant notification under such section applying relevant corresponding provisions of this Act to limited liability partnerships is issued, continue to apply as if the Companies Act, 1956 has not been repealed.

2.     Notwithstanding the repeal under sub-section (1) of the repealed enactments,—
a.     anything done or any action taken or purported to have been done or taken, including any rule, notification, inspection, order or notice made or issued or any appointment or declaration made or any operation undertaken or any direction given or any proceeding taken or any penalty, punishment, forfeiture or fine imposed under the repealed enactments shall, insofar as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act;

b.    subject to the provisions of clause (a), any order, rule, notification, regulation, appointment, conveyance, mortgage, deed, document or agreement made, fee directed, resolution passed, direction given, proceeding taken, instrument executed or issued, or thing done under or in pursuance of any repealed enactment shall, if in force at the commencement of this Act, continue to be in force, and shall have effect as if made, directed, passed, given, taken, executed, issued or done under or in pursuance of this Act;

c.     any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure or existing usage, custom, privilege, restriction or exemption shall not be affected, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in, or from, the repealed enactments;

d.    any person appointed to any office under or by virtue of any repealed enactment shall be deemed to have been appointed to that office under or by virtue of this Act;

e.     any jurisdiction, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not in existence or in force shall not be revised or restored;

f.     the offices existing on the commencement of this Act for the registration of companies shall continue as if they have been established under the provisions of this Act;

g.    the incorporation of companies registered under the repealed enactments shall continue to be valid and the provisions of this Act shall apply to such companies as if they were registered under this Act;

h.     all registers and all funds constituted and established under the repealed enactments shall be deemed to be registers and funds constituted or established under the corresponding provisions of this Act;

i.      any prosecution instituted under the repealed enactments and pending immediately before the commencement of this Act before any Court shall, subject to the provisions of this Act, continue to be heard and disposed of by the said Court;

j.      any inspection, investigation or inquiry ordered to be done under the Companies Act, 1956 shall continue to be proceeded with as if such inspection, investigation or inquiry has been ordered under the corresponding provisions of this Act; and

k.     any matter filed with the Registrar, Regional Director or the Central Government under the Companies Act, 1956 before the commencement of this Act and not fully addressed at that time shall be concluded by the Registrar, Regional Director or the Central Government, as the case may be, in terms of that Act, despite its repeal.

3.     The mention of particular matters in sub-section (2) shall not be held to prejudice the general application of section 6 of the General Clauses Act, 1897 with regard to the effect of repeal of the repealed enactments as if the Registration of Companies (Sikkim) Act, 1961 were also a Central Act.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 465 Companies Act 1956 has been repealed.

Section 464 of Companies Act 2013

Section 464 of Companies Act 2013 :-

Prohibition of association or partnership of persons exceeding certain number.

1.     No association or partnership consisting of more than such number of persons as may be prescribed shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association or partnership or by the individual members thereof, unless it is registered as a company under this Act or is formed under any other law for the time being in force:

Provided that the number of persons which may be prescribed under this sub-section shall not exceed one hundred.

2.     Nothing in sub-section (1) shall apply to—
a.     a Hindu undivided family carrying on any business; or

b.    an association or partnership, if it is formed by professionals who are governed by special Acts.

3.     Every member of an association or partnership carrying on business in contravention of sub-section (1) shall be punishable with fine which may extend to one lakh rupees and shall also be personally liable for all liabilities incurred in such business.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 464 Companies Act 1956 has been repealed.

Section 463 of Companies Act 2013

Section 463 of Companies Act 2013 :-

Power of court to grant relief in certain cases.

1.     If in any proceeding for negligence, default, breach of duty, misfeasance or breach of trust against an officer of a company, it appears to the court hearing the case that he is or may be liable in respect of the negligence, default, breach of duty, misfeasance or breach of trust, but that he has acted honestly and reasonably, and that having regard to all the circumstances of the case, including those connected with his appointment, he ought fairly to be excused, the court may relieve him, either wholly or partly, from his liability on such term, as it may think fit:

Provided that in a criminal proceeding under this sub-section, the court shall have no power to grant relief from any civil liability which may attach to an officer in respect of such negligence, default, breach of duty, misfeasance or breach of trust.

2.     Where any such officer has reason to apprehend that any proceeding will or might be brought against him in respect of any negligence, default, breach of duty, misfeasance or breach of trust, he may apply to the High Court for relief and the High Court on such application shall have the same power to relieve him as it would have had if it had been a court before which a proceedings against that officer for negligence, default, breach of duty, misfeasance or breach of trust had been brought under sub-section (1).
3.     No court shall grant any relief to any officer under sub-section (1) or sub-section (2) unless it has, by notice served in the manner specified by it, required the Registrar and such other person, if any, as it thinks necessary, to show cause why such relief should not be granted.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 463 Companies Act 1956 has been repealed.

Section 462 of Companies Act 2013

Section 462 of Companies Act 2013 :-

Power to exempt class or classes of companies from provisions of this Act.

1.     The Central Government may in the public interest, by notification direct that any of the provisions of this Act,—
a.     shall not apply to such class or classes of companies; or

b.    shall apply to the class or classes of companies with such exceptions, modifications and adaptations as may be specified in the notification.

2.     A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 462 Companies Act 1956 has been repealed.

Section 461 of Companies Act 2013

Section 461 of Companies Act 2013 :-

Annual report by Central Government.

The Central Government shall cause a general annual report on the working and administration of this Act to be prepared and laid before each House of Parliament within one year of the close of the year to which the report relates.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 461 Companies Act 1956 has been repealed.

Section 460 of Companies Act 2013

Section 460 of Companies Act 2013 :-

Condonation of delay in certain cases.

Notwithstanding anything contained in this Act,—

a.     where any application required to be made to the Central Government under any provision of this Act in respect of any matter is not made within the time specified therein, that Government may, for reasons to be recorded in writing, condone the delay; and
b.    where any document required to be filed with the Registrar under any provision of this Act is not filed within the time specified therein, the Central Government may, for reasons to be recorded in writing, condone the delay.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 460 Companies Act 1956 has been repealed.

Section 459 of Companies Act 2013

Section 459 of Companies Act 2013 :-

Powers of Central Government or Tribunal to accord approval, etc., subject to conditions and to prescribe fees on applications.

1.     Where the Central Government or the Tribunal is required or authorised by any provision of this Act—
a.     to accord approval, sanction, consent, confirmation or recognition to, or in relation to, any matter; or

b.    to give any direction in relation to any matter; or

c.     to grant any exemption in relation to any matter, then, the Central Government or the Tribunal may in the absence of anything to the contrary contained in that provision or any other provision of this Act, accord, give or grant such approval, sanction, consent, confirmation, recognition, direction or exemption, subject to such conditions, limitations or restrictions as it may think fit to impose and may, in the case of a contravention of any such condition, limitation or restriction, rescind or withdraw such approval, sanction, consent, confirmation, recognition, direction or exemption.

2.     Save as otherwise provided in this Act, every application which may be, or is required to be, made to the Central Government or the Tribunal under any provision of this Act—
a.     in respect of any approval, sanction, consent, confirmation or recognition to be accorded by that Government or the Tribunal to, or in relation to, any matter; or

b.    in respect of any direction or exemption to be given or granted by that Government or the Tribunal in relation to any matter; or

c.     in respect of any other matter, shall be accompanied by such fees as may be prescribed:

Provided that different fees may be prescribed for applications in respect of different matters or in case of applications by different classes of companies.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 459 Companies Act 1956 has been repealed.

Section 458 of Companies Act 2013

Section 458 of Companies Act 2013 :-

Delegation by Central Governemnt of its powers and functions.

1.     The Central Government may, by notification, and subject to such conditions, limitations and restrictions as may be specified therein, delegate any of its powers or functions under this Act other than the power to make rules to such authority or officer as may be specified in the notification:

Provided that the powers to enforce the provisions contained in section 194 and section 195 relating to forward dealing and insider trading shall be delegated to Securities and Exchange Board for listed companies or the companies which intend to get their securities listed and in such case, any officer authorised by the Securities and Exchange Board shall have the power to file a complaint in the court of competent jurisdiction.

2.     A copy of every notification issued under sub-section (1) shall, as soon as may be after it is issued, be laid before each House of Parliament.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 458 Companies Act 1956 has been repealed.

Section 457 of Companies Act 2013

Section 457 of Companies Act 2013 :-

Nondisclosure of information in certain cases.

Notwithstanding anything contained in any other law for the time being in force, the Registrar, any officer of the Government or any other person shall not be compelled to disclose to any court, Tribunal or other authority, the source from where he got any information which—

a.     has led the Central Government to order an investigation under section 210; or
b.    is or has been material or relevant in connection with such investigation.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 457 Companies Act 1956 has been repealed.

Section 456 of Companies Act 2013

Section 456 of Companies Act 2013 :-

Protection of action taken in good faith.

No suit, prosecution or other legal proceeding shall lie against the Government or any officer of the Government or any other person in respect of anything which is in good faith done or intended to be done in pursuance of this Act or of any rules or orders made there under, or in respect of the publication by or under the authority of the Government or such officer, of any report, paper or proceedings.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 456 Companies Act 1956 has been repealed.

Section 455 of Companies Act 2013

Section 455 of Companies Act 2013 :-

Dormant company.

1.     Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company.

Explanation.—For the purposes of this section,—

              i.        “inactive company” means a company which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years;

             ii.        “significant accounting transaction” means any transaction other than—

a.     payment of fees by a company to the Registrar;

b.    payments made by it to fulfil the requirements of this Act or any other law;

c.     allotment of shares to fulfil the requirements of this Act; and

d.    payments for maintenance of its office and records.

2.     The Registrar on consideration of the application shall allow the status of a dormant company to the applicant and issue a certificate in such form as may be prescribed to that effect.
3.     The Registrar shall maintain a register of dormant companies in such form as may be prescribed.
4.     In case of a company which has not filed financial statements or annual returns for two financial years consecutively, the Registrar shall issue a notice to that company and enter the name of such company in the register maintained for dormant companies.
5.     A dormant company shall have such minimum number of directors, file such documents and pay such annual fee as may be prescribed to the Registrar to retain its dormant status in the register and may become an active company on an application made in this behalf accompanied by such documents and fee as may be prescribed.
6.     The Registrar shall strike off the name of a dormant company from the register of dormant companies, which has failed to comply with the requirements of this section.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 455 Companies Act 1956 has been repealed. 

Section 454 of Companies Act 2013

Section 454 of Companies Act 2013 :-

Adjudication of penalties.

1.     The Central Government may, by an order published in the Official Gazette, appoint as many officers of the Central Government, not below the rank of Registrar, as adjudicating officers for adjudging penalty under the provisions of this Act in the manner as may be prescribed.
2.     The Central Government shall while appointing adjudicating officers, specify their jurisdiction in the order under sub-section (1).
3.     The adjudicating officer may, by an order impose the penalty on the company and the officer who is in default stating any non-compliance or default under the relevant provision of the Act.
4.     The adjudicating officer shall, before imposing any penalty, give a reasonable opportunity of being heard to such company and the officer who is in default.
5.     Any person aggrieved by an order made by the adjudicating officer under sub-section (3) may prefer an appeal to the Regional Director having jurisdiction in the matter.
6.     Every appeal under sub-section (5) shall be filed within sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form, manner and be accompanied by such fees as may be prescribed.
7.     The Regional Director may, after giving the parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, modifying or setting aside the order appealed against.
8.    
              i.        Where company does not pay the penalty imposed by the adjudicating officer or the Regional Director within a period of ninety days from the date of the receipt of the copy of the order, the company shall be punishable with fine which shall not be less than twenty five thousand rupees but which may extend to five lakh rupees.

             ii.        Where an officer of a company who is in default does not pay the penalty within a period of ninety days from the date of the receipt of the copy of the order, such officer shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 454 Companies Act 1956 has been repealed.

Section 453 of Companies Act 2013

Section 453 of Companies Act 2013 :-

Punishment for improper use of “Limited” or “Private Limited”.

If any person or persons trade or carry on business under any name or title, of which the word “Limited” or the words “Private Limited” or any contraction or imitation thereof is or are the last word or words, that person or each of those persons shall, unless duly incorporated with limited liability, or unless duly incorporated as a private company with limited liability, as the case may be, punishable with fine which shall not be less than five hundred rupees but may extend to two thousand rupees for every day for which that name or title has been used.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 453 Companies Act 1956 has been repealed.

Section 452 of Companies Act 2013

Section 452 of Companies Act 2013 :-

Punishment in case of repeated default.

1.     If any officer or employee of a company—
a.     wrongfully obtains possession of any property, including cash of the company; or

b.    having any such property including cash in his possession, wrongfully withholds it or knowingly applies it for the purposes other than those expressed or directed in the articles and authorised by this Act, he shall, on the complaint of the company or of any member or creditor or contributory thereof, be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.

2.     The Court trying an offence under sub-section (1) may also order such officer or employee to deliver up or refund, within a time to be fixed by it, any such property or cash wrongfully obtained or wrongfully withheld or knowingly misapplied, the benefits that have been derived from such property or cash or in default, to undergo imprisonment for a term which may extend to two years.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 452 Companies Act 1956 has been repealed.

Section 451 of Companies Act 2013

Section 451 of Companies Act 2013 :-

Punishment for wrongful withholding of property.

If a company or an officer of a company commits an offence punishable either with fine or with imprisonment and where the same offence is committed for the second or subsequent occasions within a period of three years, then, that company and every officer thereof who is in default shall be punishable with twice the amount of fine for such offence in addition to any imprisonment provided for that offence.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 451 Companies Act 1956 has been repealed.

Section 450 of Companies Act 2013

Section 450 of Companies Act 2013 :-

Punishment where no specific penalty or punishment is provided.

If a company or any officer of a company or any other person contravenes any of the provisions of this Act or the rules made there under, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act, the company and every officer of the company who is in default or such other person shall be punishable with fine which may extend to ten thousand rupees, and where the contravention is continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the contravention continues.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 450 Companies Act 1956 has been repealed.

Section 449 of Companies Act 2013

Section 449 of Companies Act 2013 :-

Punishment for false evidence.

Save as otherwise provided in this Act, if any person intentionally gives false evidence—

a.     upon any examination on oath or solemn affirmation, authorised under this Act; or

b.    in any affidavit, deposition or solemn affirmation, in or about the winding up of any company under this Act, or otherwise in or about any matter arising under this Act, he shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to seven years and with fine which may extend to ten lakh rupees.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 449 Companies Act 1956 has been repealed.

Section 448 of Companies Act 2013

Section 448 of Companies Act 2013 :-

Punishment for false statement.

Save as otherwise provided in this Act, if in any return, report, certificate, financial statement, prospectus, statement or other document required by, or for, the purposes of any of the provisions of this Act or the rules made there under, any person makes a statement,—

a.     which is false in any material particulars, knowing it to be false; or
b.    which omits any material fact, knowing it to be material, he shall be liable under section 447.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 448 Companies Act 1956 has been repealed.

Section 447 of Companies Act 2013

Section 447 of Companies Act 2013 :-

Punishment for fraud.

Without prejudice to any liability including repayment of any debt under this Act or any other law for the time being in force, any person who is found to be guilty of fraud, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to ten years and shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to three times the amount involved in the fraud:

Provided that where the fraud in question involves public interest, the term of imprisonment shall not be less than three years.

Explanation.—For the purposes of this section—

      i.        “fraud” in relation to affairs of a company or any body corporate, includes any act, omission, concealment of any fact or abuse of position committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholders or its creditors or any other person, whether or not there is any wrongful gain or wrongful loss;
     ii.        “wrongful gain” means the gain by unlawful means of property to which the person gaining is not legally entitled;
    iii.        “wrongful loss” means the loss by unlawful means of property to which the person losing is legally entitled.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 447 Companies Act 1956 has been repealed.

Section 446 of Companies Act 2013

Section 446 of Companies Act 2013 :-

Application of fines.

The court imposing any fine under this Act may direct that the whole or any part thereof shall be applied in or towards payment of the costs of the proceedings, or in or towards the payment of a reward to the person on whose information the proceedings were instituted.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 446 Companies Act 1956 has been repealed.

Section 445 of Companies Act 2013

Section 445 of Companies Act 2013 :-

Compensation for accusation without reasonable cause.

The provisions of section 250 of the Code of Criminal Procedure, 1973 shall apply mutatis mutandis to compensation for accusation without reasonable cause before the Special Court or the Court of Session.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 445 Companies Act 1956 has been repealed.

Section 444 of Companies Act 2013

Section 444 of Companies Act 2013 :-

Appeal against acquittal.

Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the Central Government may, in any case arising under this Act, direct any company prosecutor or authorise any other person either by name or by virtue of his office, to present an appeal from an order of acquittal passed by any court, other than a High Court, and an appeal presented by such prosecutor or other person shall be deemed to have been validly presented to the appellate court.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 444 Companies Act 1956 has been repealed. 

Section 443 of Companies Act 2013

Section 443 of Companies Act 2013 :-

Power of Central Government to appoint company prosecutors.

Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the Central Government may appoint generally, or for any case, or in any case, or for any specified class of cases in any local area, one or more persons, as company prosecutors for the conduct of prosecutions arising out of this Act and the persons so appointed as company prosecutors shall have all the powers and privileges conferred by the Code on Public Prosecutors appointed under section 24 of the Code.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 443 Companies Act 1956 has been repealed.

Section 442 of Companies Act 2013

Section 442 of Companies Act 2013 :-

Mediation and Conciliation Panel.

1.     The Central Government shall maintain a panel of experts to be called as the Mediation and Conciliation Panel consisting of such number of experts having such qualifications as may be prescribed for mediation between the parties during the pendency of any proceedings before the Central Government or the Tribunal or the Appellate Tribunal under this Act.
2.     Any of the parties to the proceedings may, at any time during the proceedings before the Central Government or the Tribunal or the Appellate Tribunal, apply to the Central Government or the Tribunal or the Appellate Tribunal, as the case may be, in such form along with such fees as may be prescribed, for referring the matter pertaining to such proceedings to the Mediation and Conciliation Panel and the Central Government or Tribunal or the Appellate Tribunal, as the case may be, shall appoint one or more experts from the panel referred to in sub-section (1).
3.     The Central Government or the Tribunal or the Appellate Tribunal before which any proceeding is pending may, suo motu, refer any matter pertaining to such proceeding to such number of experts from the Mediation and Conciliation Panel as the Central Government or the Tribunal or the Appellate Tribunal, as the case may be, deems fit.
4.     The fee and other terms and conditions of experts of the Mediation and Conciliation Panel shall be such as may be prescribed.
5.     The Mediation and Conciliation Panel shall follow such procedure as may be prescribed and dispose of the matter referred to it within a period of three months from the date of such reference and forward its recommendations to the Central Government or the Tribunal or the Appellate Tribunal, as the case may be.
6.     Any party aggreived by the recommendation of the Mediation and Conciliation Panel may file objections to the Central Government or the Tribunal or the Appellate Tribunal, as the case may be.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 442 Companies Act 1956 has been repealed.

Section 441 of Companies Act 2013

Section 441 of Companies Act 2013 :-

Compounding of certain offences.

1.     Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any offence punishable under this Act (whether committed by a company or any officer thereof) with fine only, may, either before or after the institution of any prosecution, be compounded by—
a.     the Tribunal; or

b.    where the maximum amount of fine which may be imposed for such offence does not exceed five lakh rupees, by the Regional Director or any officer authorised by the Central Government, on payment or credit, by the company or, as the case may be, the officer, to the Central Government of such sum as that Tribunal or the Regional Director or any officer authorized by the Central Government, as the case may be, may specify:

Provided that the sum so specified shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded:

Provided further that in specifying the sum required to be paid or credited for the compounding of an offence under this sub-section, the sum, if any, paid by way of additional fee under sub-section (2) of section 403 shall be taken into account:

Provided also that any offence covered under this sub-section by any company or its officer shall not be compounded if the investigation against such company has been initiated or is pending under this Act.

2.     Nothing in sub-section (1) shall apply to an offence committed by a company or its officer within a period of three years from the date on which a similar offence committed by it or him was compounded under this section.

Explanation.—For the purposes of this section,—

a.     any second or subsequent offence committed after the expiry of a period of three years from the date on which the offence was previously compounded, shall be deemed to be a first offence;

b.    “Regional Director” means a person appointed by the Central Government as a Regional Director for the purposes of this Act.

3.  
a.     Every application for the compounding of an offence shall be made to the Registrar who shall forward the same, together with his comments thereon, to the Tribunal or the Regional Director or any officer authorised by the Central Government, as the case may be.

b.    Where any offence is compounded under this section, whether before or after the institution of any prosecution, an intimation thereof shall be given by the company to the Registrar within seven days from the date on which the offence is so compounded.

c.     Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, either by the Registrar or by any shareholder of the company or by any person authorised by the Central Government against the offender in relation to whom the offence is so compounded.

d.    Where the compounding of any offence is made after the institution of any prosecution, such compounding shall be brought by the Registrar in writing, to the notice of the court in which the prosecution is pending and on such notice of the compounding of the offence being given, the company or its officer in relation to whom the offence is so compounded shall be discharged.

4.     The Tribunal or the Regional Director or any officer authorised by the Central Government, as the case may be, while dealing with a proposal for the compounding of an offence for a default in compliance with any provision of this Act which requires a company or its officer to file or register with, or deliver or send to, the Registrar any return, account or other document, may direct, by an order, if it or he thinks fit to do so, any officer or other employee of the company to file or register with, or on payment of the fee, and the additional fee, required to be paid under section 403, such return, account or other document within such time as may be specified in the order.
5.     Any officer or other employee of the company who fails to comply with any order made by the Tribunal or the Regional Director or any officer authorised by the Central Government under sub-section (4) shall be punishable with imprisonment for a term which may extend to six months, or with fine not exceeding one lakh rupees, or with both.
6.     Notwithstanding anything contained in the Code of Criminal Procedure, 1973,—
a.     any offence which is punishable under this Act, with imprisonment or fine, or with imprisonment or fine or with both, shall be compoundable with the permission of the Special Court, in accordance with the procedure laid down in that Act for compounding of offences;

b.    any offence which is punishable under this Act with imprisonment only or with imprisonment and also with fine shall not be compoundable.

7.     No offence specified in this section shall be compounded except under and in accordance with the provisions of this section.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 441 Companies Act 1956 has been repealed.

Section 440 of Companies Act 2013

Section 440 of Companies Act 2013 :-

Transitional provisions.

Any offence committed under this Act, which is triable by a Special Court shall, until a Special Court is established, be tried by a Court of Session exercising jurisdiction over the area, notwithstanding anything contained in the Code of Criminal Procedure, 1973:

Provided that nothing contained in this section shall affect the powers of the High Court under section 407 of the Code to transfer any case or class of cases taken cognizance by a Court of Session under this section.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 440 Companies Act 1956 has been repealed.

Section 439 of Companies Act 2013

Section 439 of Companies Act 2013 :-

Offences to be noncognizable.

1.     Notwithstanding anything in the Code of Criminal Procedure, 1973, every offence under this Act except the offences referred to in sub-section (6) of section 212 shall be deemed to be non-cognizable within the meaning of the said Code.
2.     No court shall take cognizance of any offence under this Act which is alleged to have been committed by any company or any officer thereof, except on the complaint in writing of the Registrar, a shareholder of the company, or of a person authorised by the Central Government in that behalf:

Provided that the court may take cognizance of offences relating to issue and transfer of securities and non-payment of dividend, on a complaint in writing, by a person authorized by the Securities and Exchange Board of India:

Provided further that nothing in this sub-section shall apply to a prosecution by a company of any of its officers.

3.     Notwithstanding anything contained in the Code of Criminal Procedure, 1973, where the complainant under sub-section (2) is the Registrar or a person authorised by the Central Government, the presence of such officer before the Court trying the offences shall not be necessary unless the court requires his personal attendance at the trial.
4.     The provisions of sub-section (2) shall not apply to any action taken by the liquidator of a company in respect of any offence alleged to have been committed in respect of any of the matters in Chapter XX or in any other provision of this Act relating to winding up of companies.

Explanation.—The liquidator of a company shall not be deemed to be an officer of the company within the meaning of sub-section (2).

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 439 Companies Act 1956 has been repealed.

Section 438 of Companies Act 2013

Section 438 of Companies Act 2013 :-

Application of Code to proceedings before Special Court.

Save as otherwise provided in this Act, the provisions of the Code of Criminal Procedure, 1973 shall apply to the proceedings before a Special Court and for the purposes of the said provisions, the Special Court shall be deemed to be a Court of Session and the person conducting a prosecution before a Special Court shall be deemed to be a Public Prosecutor.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 438 Companies Act 1956 has been repealed.

Monday, August 15, 2016

Section 437 of Companies Act 2013

Section 437 of Companies Act 2013 :-

Appeal and revision.

The High Court may exercise, so far as may be applicable, all the powers conferred by Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 on a High Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 437 Companies Act 1956 has been repealed.

Sunday, August 14, 2016

Section 436 of Companies Act 2013

Section 436 of Companies Act 2013 :-

Offences triable by Special Courts.

1.     Notwithstanding anything contained in the Code of Criminal Procedure, 1973,—
a.     all offences under this Act shall be triable only by the Special Court established for the area in which the registered office of the company in relation to which the offence is committed or where there are more Special Courts than one for such area, by such one of them as may be specified in this behalf by the High Court concerned;

b.    where a person accused of, or suspected of the commission of, an offence under this Act is forwarded to a Magistrate under sub-section (2) or sub-section (2A) of section 167 of the Code of Criminal Procedure, 1973, such Magistrate may authorize the detention of such person in such custody as he thinks fit for a period not exceeding fifteen days in the whole where such Magistrate is a Judicial Magistrate and seven days in the whole where such Magistrate is an Executive Magistrate:

Provided that where such Magistrate considers that the detention of such person upon or before the expiry of the period of detention is unnecessary, he shall order such person to be forwarded to the Special Court having jurisdiction;

c.     the Special Court may exercise, in relation to the person forwarded to it under clause (b), the same power which a Magistrate having jurisdiction to try a case may exercise under section 167 of the Code of Criminal Procedure, 1973 in relation to an accused person who has been forwarded to him under that section; and

d.    a Special Court may, upon perusal of the police report of the facts constituting an offence under this Act or upon a complaint in that behalf, take cognizance of that offence without the accused being committed to it for trial.

2.     When trying an offence under this Act, a Special Court may also try an offence other than an offence under this Act with which the accused may, under the Code of Criminal Procedure, 1973 be charged at the same trial.
3.     Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the Special Court may, if it thinks fit, try in a summary way any offence under this Act which is punishable with imprisonment for a term not exceeding three years:

Provided that in the case of any conviction in a summary trial, no sentence of imprisonment for a term exceeding one year shall be passed:

Provided further that when at the commencement of, or in the course of, a summary trial, it appears to the Special Court that the nature of the case is such that the sentence of imprisonment for a term exceeding one year may have to be passed or that it is, for any other reason, undesirable to try the case summarily, the Special Court shall, after hearing the parties, record an order to that effect and thereafter recall any witnesses who may have been examined and proceed to hear or rehear the case in accordance with the procedure for the regular trial.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 436 Companies Act 1956 has been repealed.

Section 435 of Companies Act 2013

Section 435 of Companies Act 2013 :-

Establishment of Special Courts.

1.     The Central Government may, for the purpose of providing speedy trial of offences under this Act, by notification, establish or designate as many Special Courts as may be necessary.
2.     A Special Court shall consist of a single judge who shall be appointed by the Central Government with the concurrence of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working.
3.     A person shall not be qualified for appointment as a judge of a Special Court unless he is, immediately before such appointment, holding office of a Sessions Judge or an Additional Sessions Judge.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 435 Companies Act 1956 has been repealed.

Section 434 of Companies Act 2013

Section 434 of Companies Act 2013 :-

Transfer of certain pending proceedings.
1.     On such date as may be notified by the Central Government in this behalf,—
a.     all matters, proceedings or cases pending before the Board of Company Law Administration (herein in this section referred to as the Company Law Board) constituted under sub-section (1) of section 10E of the Companies Act, 1956, immediately before such date shall stand transferred to the Tribunal and the Tribunal shall dispose of such matters, proceedings or cases in accordance with the provisions of this Act;

b.    any person aggrieved by any decision or order of the Company Law Board made before such date may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Company Law Board to him on any question of law arising out of such order:

Provided that the High Court may if it is satisfied that the appellant was prevented by sufficient cause from filing an appeal within the said period, allow it to be filed within a further period not exceeding sixty days;

c.     all proceedings under the Companies Act, 1956, including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies, pending immediately before such date before any District Court or High Court, shall stand transferred to the Tribunal and the Tribunal may proceed to deal with such proceedings from the stage before their transfer.

d.    any appeal preferred to the Appellate Authority for Industrial and Financial Reconstruction or any reference made or inquiry pending to or before the Board of Industrial and Financial Reconstruction or any proceeding of whatever nature pending before the Appellate Authority for Industrial and Financial Reconstruction or the Board for Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provisions) Act, 1985 immediately before the commencement of this Act shall stand abated:

Provided that a company in respect of which such appeal or reference or inquiry stands abated under this clause may make a reference to the Tribunal under this Act within one hundred and eighty days from the commencement of this Act in accordance with the provisions of this Act:

Provided further that no fees shall be payable for making such reference under this Act by a company whose appeal or reference or inquiry stands abated under this clause.

2.     The Central Government may make rules consistent with the provisions of this Act to ensure timely transfer of all matters, proceedings or cases pending before the Company Law Board or the courts, to the Tribunal under this section.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 434 Companies Act 1956 has been repealed.

Section 433 of Companies Act 2013

Section 433 of Companies Act 2013 :-

Limitation.

The provisions of the Limitation Act, 1963 shall, as far as may be, apply to proceedings or appeals before the Tribunal or the Appellate Tribunal, as the case may be.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 433 Companies Act 1956 has been repealed.

Section 432 of Companies Act 2013

Section 432 of Companies Act 2013 :-

Right to legal representation.

A party to any proceeding or appeal before the Tribunal or the Appellate Tribunal, as the case may be, may either appear in person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any other person to present his case before the Tribunal or the Appellate Tribunal, as the case may be.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 432 Companies Act 1956 has been repealed.

Section 431 of Companies Act 2013

Section 431 of Companies Act 2013 :-

Vacancy in Tribunal or Appellate Tribunal not to invalidate acts or proceedings.

No act or proceeding of the Tribunal or the Appellate Tribunal shall be questioned or shall be invalid merely on the ground of the existence of any vacancy or defect in the constitution of the Tribunal or the Appellate Tribunal, as the case may be.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 431 Companies Act 1956 has been repealed.

Section 430 of Companies Act 2013

Section 430 of Companies Act 2013 :-

Civil court not to have jurisdiction.

No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Tribunal or the Appellate Tribunal is empowered to determine by or under this Act or any other law for the time being in force and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or any other law for the time being in force, by the Tribunal or the Appellate Tribunal.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 430 Companies Act 1956 has been repealed.

Section 429 of Companies Act 2013

Section 429 of Companies Act 2013 :-

Power to seek assistance of Chief Metropolitan Magistrate, etc.

1.     The Tribunal may, in any proceeding relating to a sick company or winding up of any other company, in order to take into custody or under its control all property, books of account or other documents, request, in writing, the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector within whose jurisdiction any such property, books of account or other documents of such sick or other company, are situate or found, to take possession thereof, and the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector, as the case may be, shall, on such request being made to him,—
a.     take possession of such property, books of account or other documents; and

b.    cause the same to be entrusted to the Tribunal or other person authorized by it.

2.     For the purpose of securing compliance with the provisions of sub-section (1), the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector may take or cause to be taken such steps and use or cause to be used such force as may, in his opinion, be necessary.
3.     No act of the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector done in pursuance of this section shall be called in question in any court or before any authority on any ground whatsoever.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 429 Companies Act 1956 has been repealed.

Section 428 of Companies Act 2013

Section 428 of Companies Act 2013 :-

Protection of action taken in good faith.

No suit, prosecution or other legal proceeding shall lie against the Tribunal, the President, Member, officer or other employee, or against the Appellate Tribunal, the Chairperson, Member, officer or other employees thereof or liquidator or any other person authorised by the Tribunal or the Appellate Tribunal for the discharge of any function under this Act in respect of any loss or damage caused or likely to be caused by any act which is in good faith done or intended to be done in pursuance of this Act.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 428 Companies Act 1956 has been repealed. 

Section 427 of Companies Act 2013

Section 427 of Companies Act 2013 :-

President, Members, officers, etc., to be public servants.

The President, Members, officers and other employees of the Tribunal and the Chairperson, Members, officers and other employees of the Appellate Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 427 Companies Act 1956 has been repealed.

Section 426 of Companies Act 2013

Section 426 of Companies Act 2013 :-

Delegation of powers.

The Tribunal or the Appellate Tribunal may, by general or special order, direct, subject to such conditions, if any, as may be specified in the order, any of its officers or employees or any other person authorised by it to inquire into any matter connected with any proceeding or, as the case may be, appeal before it and to report to it in such manner as may be specified in the order.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 426 Companies Act 1956 has been repealed.

Section 425 of Companies Act 2013

Section 425 of Companies Act 2013 :-

Power to punish for contempt.

The Tribunal and the Appellate Tribunal shall have the same jurisdiction, powers and authority in respect of contempt of themselves as the High Court has and may exercise, for this purpose, the powers under the provisions of the Contempt of Courts Act, 1971, which shall have the effect subject to modifications that—

a.     the reference therein to a High Court shall be construed as including a reference to the Tribunal and the Appellate Tribunal; and
b.    the reference to Advocate-General in section 15 of the said Act shall be construed as a reference to such Law Officers as the Central Government may, specify in this behalf.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 425 Companies Act 1956 has been repealed.

Section 424 of Companies Act 2013

Section 424 of Companies Act 2013 :-

Procedure before Tribunal and Appellate Tribunal.

1.     The Tribunal and the Appellate Tribunal shall not, while disposing of any proceeding before it or, as the case may be, an appeal before it, be bound by the procedure laid down in the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice, and, subject to the other provisions of this Act and of any rules made there under, the Tribunal and the Appellate Tribunal shall have power to regulate their own procedure.
2.     The Tribunal and the Appellate Tribunal shall have, for the purposes of discharging their functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely:—
a.     summoning and enforcing the attendance of any person and examining him on oath;

b.    requiring the discovery and production of documents;

c.     receiving evidence on affidavits;

d.    subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872, requisitioning any public record or document or a copy of such record or document from any office;

e.     issuing commissions for the examination of witnesses or documents;

f.      dismissing a representation for default or deciding it ex parte;

g.    setting aside any order of dismissal of any representation for default or any order passed by it ex parte; and

h.     any other matter which may be prescribed.

3.     Any order made by the Tribunal or the Appellate Tribunal may be enforced by that Tribunal in the same manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the Tribunal or the Appellate Tribunal to send for execution of its orders to the court within the local limits of whose jurisdiction,—
a.     in the case of an order against a company, the registered office of the company is situate; or

b.    in the case of an order against any other person, the person concerned voluntarily resides or carries on business or personally works for gain.

4.     All proceedings before the Tribunal or the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code, and the Tribunal and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 424 Companies Act 1956 has been repealed.

Section 423 of Companies Act 2013

Section 423 of Companies Act 2013 :-

Appeal to Supreme

Any person aggrieved by any order of the Appellate Tribunal may file an appeal to the Supreme Court within sixty days from the date of receipt of the order of the Appellate Tribunal to him on any question of law arising out of such order: Court.

Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 423 Companies Act 1956 has been repealed.

Section 422 of Companies Act 2013

Section 422 of Companies Act 2013 :-

Expeditious disposal by Tribunal and Appellate Tribunal.

1.     Every application or petition presented before the Tribunal and every appeal filed before the Appellate Tribunal shall be dealt with and disposed of by it as expeditiously as possible and every endeavour shall be made by the Tribunal or the Appellate Tribunal, as the case may be, for the disposal of such application or petition or appeal within three months from the date of its presentation before the Tribunal or the filing of the appeal before the Appellate Tribunal.
2.     Where any application or petition or appeal is not disposed of within the period specified in sub-section (1), the Tribunal or, as the case may be, the Appellate Tribunal, shall record the reasons for not disposing of the application or petition or the appeal, as the case may be, within the period so specified; and the President or the Chairperson, as the case may be, may, after taking into account the reasons so recorded, extend the period referred to in sub-section (1) by such period not exceeding ninety days as he may consider necessary.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 422 Companies Act 1956 has been repealed.

Section 421 of Companies Act 2013

Section 421 of Companies Act 2013 :-

Appeal from orders of Tribunal.

1.     Any person aggrieved by an order of the Tribunal may prefer an appeal to the Appellate Tribunal.
2.     No appeal shall lie to the Appellate Tribunal from an order made by the Tribunal with the consent of parties.
3.     Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order of the Tribunal is made available to the person aggrieved and shall be in such form, and accompanied by such fees, as may be prescribed:

Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days from the date aforesaid, but within a further period not exceeding forty-five days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within that period.

4.     On the receipt of an appeal under sub-section (1), the Appellate Tribunal shall, after giving the parties to the appeal a reasonable opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against.
5.     The Appellate Tribunal shall send a copy of every order made by it to the Tribunal and the parties to appeal.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 421 Companies Act 1956 has been repealed.

Section 420 of Companies Act 2013

Section 420 of Companies Act 2013 :-

Orders of Tribunal.

1.     The Tribunal may, after giving the parties to any proceeding before it, a reasonable opportunity of being heard, pass such orders thereon as it thinks fit.
2.     The Tribunal may, at any time within two years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it, and shall make such amendment, if the mistake is brought to its notice by the parties:

Provided that no such amendment shall be made in respect of any order against which an appeal has been preferred under this Act.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 420 Companies Act 1956 has been repealed.

Section 419 of Companies Act 2013

Section 419 of Companies Act 2013 :-

Benches of Tribunal.

1.     There shall be constituted such number of Benches of the Tribunal, as may, by notification, be specified by the Central Government.
2.     The Principal Bench of the Tribunal shall be at New Delhi which shall be presided over by the President of the Tribunal.
3.     The powers of the Tribunal shall be exercisable by Benches consisting of two Members out of whom one shall be a Judicial Member and the other shall be a Technical Member:

Provided that it shall be competent for the Members of the Tribunal authorised in this behalf to function as a Bench consisting of a single Judicial Member and exercise the powers of the Tribunal in respect of such class of cases or such matters pertaining to such class of cases, as the President may, by general or special order, specify:

Provided further that if at any stage of the hearing of any such case or matter, it appears to the Member that the case or matter is of such a nature that it ought to be heard by a Bench consisting of two Members, the case or matter may be transferred by the President, or, as the case may be, referred to him for transfer, to such Bench as the President may deem fit.

4.     The President shall, for the disposal of any case relating to rehabilitation, restructuring, reviving or winding up, of companies, constitute one or more Special Benches consisting of three or more Members, majority necessarily being of Judicial Members.
5.     If the Members of a Bench differ in opinion on any point or points, it shall be decided according to the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ, and the case shall be referred by the President for hearing on such point or points by one or more of the other Members of the Tribunal and such point or points shall be decided according to the opinion of the majority of Members who have heard the case, including those who first heard it.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 419 Companies Act 1956 has been repealed.

Section 418 of Companies Act 2013

Section 418 of Companies Act 2013 :-

Staff of Tribunal and Appellate Tribunal.

1.     The Central Government shall, in consultation with the Tribunal and the Appellate Tribunal, provide the Tribunal and the Appellate Tribunal, as the case may be, with such officers and other employees as may be necessary for the exercise of the powers and discharge of the functions of the Tribunal and the Appellate Tribunal.
2.     The officers and other employees of the Tribunal and the Appellate Tribunal shall discharge their functions under the general superintendence and control of the President, or as the case may be, the Chairperson, or any other Member to whom powers for exercising such superintendence and control are delegated by him.
3.     The salaries and allowances and other conditions of service of the officers and other employees of the Tribunal and the Appellate Tribunal shall be such as may be prescribed.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 418 Companies Act 1956 has been repealed.

Section 417 of Companies Act 2013

Section 417 of Companies Act 2013 :-

Removal of Members.

1.     The Central Government may, after consultation with the Chief Justice of India, remove from office the President, Chairperson or any Member, who—
a.     has been adjudged an insolvent; or

b.    has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or

c.     has become physically or mentally incapable of acting as such President, the Chairperson, or Member; or

d.    has acquired such financial or other interest as is likely to affect prejudicially his functions as such President, the Chairperson or Member; or

e.     has so abused his position as to render his continuance in office prejudicial to the public interest:

Provided that the President, the Chairperson or the Member shall not be removed on any of the grounds specified in clauses (b) to (e) without giving him a reasonable opportunity of being heard.

2.     Without prejudice to the provisions of sub-section (1), the President, the Chairperson or the Member shall not be removed from his office except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the Central Government in which such President, the Chairperson or Member had been informed of the charges against him and given a reasonable opportunity of being heard.
3.     The Central Government may, with the concurrence of the Chief Justice of India, suspend from office, the President, the Chairperson or Member in respect of whom reference has been made to the Judge of the Supreme Court under sub-section (2) until the Central Government has passed orders on receipt of the report of the Judge of the Supreme Court on such reference.
4.     The Central Government shall, after consultation with the Supreme Court, make rules to regulate the procedure for the inquiry on the ground of proved misbehaviour or incapacity referred to in sub-section (2).

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 417 Companies Act 1956 has been repealed.

Section 416 of Companies Act 2013

Section 416 of Companies Act 2013 :-

Resignation of Members.

The President, the Chairperson or any Member may, by notice in writing under his hand addressed to the Central Government, resign from his office:

Provided that the President, the Chairperson, or the Member shall continue to hold office until the expiry of three months from the date of receipt of such notice by the Central Government or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earliest.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 416 Companies Act 1956 has been repealed.

Section 415 of Companies Act 2013

Section 415 of Companies Act 2013 :-

Acting President and Chairperson of Tribunal or Appellate Tribunal.

1.     In the event of the occurrence of any vacancy in the office of the President or the Chairperson by reason of his death, resignation or otherwise, the senior-most Member shall act as the President or the Chairperson, as the case may be, until the date on which a new President or Chairperson appointed in accordance with the provisions of this Act to fill such vacancy enters upon his office.
2.     When the President or the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Member shall discharge the functions of the President or the Chairperson, as the case may be, until the date on which the President or the Chairperson resumes his duties.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 415 Companies Act 1956 has been repealed.

Section 414 of Companies Act 2013

Section 414 of Companies Act 2013 :-

Salary, allowances and other terms and conditions of service of Members.

The salary, allowances and other terms and conditions of service of the Members of the Tribunal and the Appellate Tribunal shall be such as may be prescribed:

Provided that neither the salary and allowances nor the other terms and conditions of service of the Members shall be varied to their disadvantage after their appointment.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 414 Companies Act 1956 has been repealed.

Section 413 of Companies Act 2013

Section 413 of Companies Act 2013 :-

Term of office of President, chairperson and other Members.

1.     The President and every other Member of the Tribunal shall hold office as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re-appointment for another term of five years.
2.     A Member of the Tribunal shall hold office as such until he attains,—
a.     in the case of the President, the age of sixty-seven years;

b.    in the case of any other Member, the age of sixty-five years:

Provided that a person who has not completed fifty years of age shall not be eligible for appointment as Member:

Provided further that the Member may retain his lien with his parent cadre or Ministry or Department, as the case may be, while holding office as such for a period not exceeding one year.

3.     The chairperson or a Member of the Appellate Tribunal shall hold office as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re-appointment for another term of five years.
4.     A Member of the Appellate Tribunal shall hold office as such until he attains,—
a.     in the case of the Chairperson, the age of seventy years;

b.    in the case of any other Member, the age of sixty-seven years:

Provided that a person who has not completed fifty years of age shall not be eligible for appointment as Member:

Provided further that the Member may retain his lien with his parent cadre or Ministry or Department, as the case may be, while holding office as such for a period not exceeding one year.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 413 Companies Act 1956 has been repealed.

Section 412 of Companies Act 2013

Section 412 of Companies Act 2013 :-

Selection of Members of Tribunal and Appellate Tribunal.

1.     The President of the Tribunal and the chairperson and Judicial Members of the Appellate Tribunal, shall be appointed after consultation with the Chief Justice of India.
2.     The Members of the Tribunal and the Technical Members of the Appellate Tribunal shall be appointed on the recommendation of a Selection Committee consisting of—
a.     Chief Justice of India or his nominee—Chairperson;

b.    a senior Judge of the Supreme Court or a Chief Justice of High Court— Member;

c.     Secretary in the Ministry of Corporate Affairs—Member;

d.    Secretary in the Ministry of Law and Justice—Member; and

e.     Secretary in the Department of Financial Services in the Ministry of Finance— Member.

3.     The Secretary, Ministry of Corporate Affairs shall be the Convener of the Selection Committee.
4.     The Selection Committee shall determine its procedure for recommending persons under sub-section (2).
5.     No appointment of the Members of the Tribunal or the Appellate Tribunal shall be invalid merely by reason of any vacancy or any defect in the constitution of the Selection Committee.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 412 Companies Act 1956 has been repealed.

Section 411 of Companies Act 2013

Section 411 of Companies Act 2013 :-

Qualifications of chairperson and Members of Appellate Tribunal.

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 experience, of not less than twenty-five years, in law, industrial finance, industrial management or administration, industrial reconstruction, investment, accountancy, labour matters, or such other disciplines related to management, conduct of affairs, revival, rehabilitation and winding up of companies.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 411 Companies Act 1956 has been repealed.

Section 410 of Companies Act 2013

Section 410 of Companies Act 2013 :-

Constitution of Appellate Tribunal.

The Central Government shall, by notification, constitute, with effect from such date as may be specified therein, an Appellate Tribunal to be known as the National Company Law Appellate Tribunal consisting of a chairperson and such number of Judicial and Technical Members, not exceeding eleven, as the Central Government may deem fit, to be appointed by it by notification, for hearing appeals against the orders of the Tribunal.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 410 Companies Act 1956 has been repealed.

Section 409 of Companies Act 2013

Section 409 of Companies Act 2013 :-

Qualification of President and Members of Tribunal.

1.     The President shall be a person who is or has been a Judge of a High Court for five years.
2.     A person shall not be qualified for appointment as a Judicial Member unless he—
a.     is, or has been, a judge of a High Court; or

b.    is, or has been, a District Judge for at least five years; or

c.     has, for at least ten years been an advocate of a court.

Explanation.—For the purposes of clause (c), in computing the period during which a person has been an advocate of a court, there shall be included any period during which the person has held judicial office or the office of a member of a tribunal or any post, under the Union or a State, requiring special knowledge of law after he become an advocate.

3.     A person shall not be qualified for appointment as a Technical Member unless he—
a.     has, for at least fifteen years been a member of the Indian Corporate Law Service or Indian Legal Service out of which at least three years shall be in the pay scale of Joint Secretary to the Government of India or equivalent or above in that service; or

b.    is, or has been, in practice as a chartered accountant for at least fifteen years; or

c.     is, or has been, in practice as a cost accountant for at least fifteen years; or

d.    is, or has been, in practice as a company secretary for at least fifteen years; or

e.     is a person of proven ability, integrity and standing having special knowledge and experience, of not less than fifteen years, in law, industrial finance, industrial management or administration, industrial reconstruction, investment, accountancy, labour matters, or such other disciplines related to management, conduct of affairs, revival, rehabilitation and winding up of companies; or

f.     is, or has been, for at least five years, a presiding officer of a Labour Court, Tribunal or National Tribunal constituted under the Industrial Disputes Act, 1947.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 409 Companies Act 1956 has been repealed.

Section 408 of Companies Act 2013

Section 408 of Companies Act 2013 :-

Constitution of National Company Law Tribunal.

The Central Government shall, by notification, constitute, with effect from such date as may be specified therein, a Tribunal to be known as the National Company Law Tribunal consisting of a President and such number of Judicial and Technical members, as the Central Government may deem necessary, to be appointed by it by notification, to exercise and discharge such powers and functions as are, or may be, conferred on it by or under this Act or any other law for the time being in force.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 408 Companies Act 1956 has been repealed.

Section 407 of Companies Act 2013

Section 407 of Companies Act 2013 :-

Definitions.

In this Chapter, unless the context otherwise requires,—

a.     “Chairperson” means the Chairperson of the Appellate Tribunal;
b.    “Judicial Member” means a member of the Tribunal or the Appellate Tribunal appointed as such and includes the President or the Chairperson, as the case may be;
c.     “Member” means a member, whether Judicial or Technical of the Tribunal or the Appellate Tribunal and includes the President or the Chairperson, as the case may be;
d.    “President” means the President of the Tribunal;
e.     “Technical Member” means a member of the Tribunal or the Appellate Tribunal appointed as such.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 407 Companies Act 1956 has been repealed.

Section 406 of Companies Act 2013

Section 406 of Companies Act 2013 :-

Power to modify Act in its application to Nidhis.

1.     In this section, “Nidhi” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Government for regulation of such class of companies.
2.     Save as otherwise expressly provided, the Central Government may, by notification, direct that any of the provisions of this Act shall not apply, or shall apply with such exceptions, modifications and adaptations as may be specified in that notification, to any Nidhi or Nidhis of any class or description as may be specified in that notification.
3.     A copy of every notification proposed to be issued under sub-section (2), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 406 Companies Act 1956 has been repealed.

Section 405 of Companies Act 2013

Section 405 of Companies Act 2013 :-

Power of Central Government to direct companies to furnish information or statistics.

1.     The Central Government may, by order, require companies generally, or any class of companies, or any company, to furnish such information or statistics with regard to their or its constitution or working, and within such time, as may be specified in the order.
2.     Every order under sub-section (1) shall be published in the Official Gazette and may be addressed to companies generally or to any class of companies, in such manner, as the Central Government may think fit and the date of such publication shall be deemed to be the date on which requirement for information or statistics is made on such companies or class of companies, as the case may be.
3.     For the purpose of satisfying itself that any information or statistics furnished by a company or companies in pursuance of any order under sub-section (1) is correct and complete, the Central Government may by order require such company or companies to produce such records or documents in its possession or allow inspection thereof by such officer or furnish such further information as that Government may consider necessary.
4.     If any company fails to comply with an order made under sub-section (1) or subsection (3), or knowingly furnishes any information or statistics which is incorrect or incomplete in any material respect, the company shall be punishable with fine which may extend to twenty-five thousand rupees and every officer of the company who is in default, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to three lakh rupees, or with both.
5.     Where a foreign company carries on business in India, all references to a company in this section shall be deemed to include references to the foreign company in relation, and only in relation, to such business.

India's Important Case Laws and Landmark Judgments on Companies Act 2013.

Section 405 Companies Act 1956 has been repealed.