Section 431 of the Companies Act, 2013
Section 431 of the Companies Act, 2013 relates to the filling up of vacancies in the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT).
🔹 Section 431 – Vacancy in Tribunal or Appellate Tribunal Not to Invalidate Acts or Proceedings
📘 Bare Act Language:
No act or proceeding of the Tribunal or the Appellate Tribunal shall be invalid merely by reason of—
(a) any vacancy in, or any defect in the constitution of the Tribunal or the Appellate Tribunal; or
(b) any defect in the appointment of a person acting as a Member thereof; or
(c) any irregularity not affecting the merits of the case.
🧠Explanation:
This section provides legal continuity and validity to the decisions or actions taken by the Tribunal or Appellate Tribunal.
Even if there is:
a vacant seat,
a technical issue in the appointment of a member, or
a minor procedural irregularity (which doesn't affect the fairness of the decision),
✅ Purpose:
Prevents unnecessary delays or challenges to the functioning of NCLT/NCLAT due to technical issues.
Ensures the stability and efficiency of the adjudication process under the Companies Act.
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