Section 426 of the Companies Act, 2013
Section 426 of the Companies Act, 2013 deals with the power of the Tribunal to enforce its orders.
📘 Section 426 – Power to Enforce Orders of Tribunal
Provision:
The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (CPC) for the enforcement of their orders.
✅ Key Points:
Tribunal’s Authority:
NCLT and NCLAT can enforce their orders in the same way as a civil court enforces its decrees.
Legal Standing:
Orders of the Tribunal have the same force as that of a civil court decree.
Implementation Support:
This ensures that parties comply with the Tribunal’s rulings without needing to approach a separate civil court for enforcement.
🧾 Example:
If NCLT passes an order directing a company to repay dues to a creditor, and the company fails to comply, the creditor can seek enforcement directly through the Tribunal, similar to how it would be done in a civil court.
RELATED Blog
0 comments