Section 422 of the Companies Act, 2013
Section 422 of the Companies Act, 2013 deals with the expeditious disposal of cases by the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT).
⚖️ Section 422 – Expeditious disposal by Tribunal and Appellate Tribunal
Bare Act Language:
The Tribunal and the Appellate Tribunal shall endeavour to dispose of every application or appeal within 3 months from the date of its presentation before the Tribunal or the Appellate Tribunal.
If the application or appeal is not disposed of within 3 months, the Tribunal or Appellate Tribunal shall record the reasons for the delay.
The President or the Chairperson, as the case may be, shall extend the period and record the reasons in writing for such extension.
✅ Key Points:
Time-bound justice: The section emphasizes the importance of speedy disposal of company law matters.
3-month target: Both NCLT and NCLAT are expected to complete proceedings within 3 months.
Extension permitted: If it cannot be completed in 3 months, reasons must be recorded in writing, and the extension is officially allowed.
Accountability mechanism: This provision brings transparency and accountability in handling corporate disputes.
📌 Objective:
To ensure timely resolution of company disputes and avoid unnecessary delays in legal proceedings related to corporate law.
RELATED Blog
0 comments