Section 425 of the Companies Act, 2013
Section 425 of the Companies Act, 2013 deals with the power of the Tribunal (NCLT) and the Appellate Tribunal (NCLAT) to punish for contempt.
⚖️ Section 425 – Power to punish for contempt
Provision:
The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) shall have the same jurisdiction, powers, and authority in respect of contempt of themselves as the High Court under the provisions of the Contempt of Courts Act, 1971, as if they were a High Court.
However, the power shall be exercised by the President (NCLAT) or Chairperson (NCLT) or a Member authorized by them.
✅ Key Highlights:
NCLT and NCLAT can take action for civil or criminal contempt.
Their powers are equivalent to those of a High Court under the Contempt of Courts Act, 1971.
They can penalize for actions like:
Disobeying orders
Interfering with judicial proceedings
Showing disrespect to the Tribunal
RELATED Blog
0 comments