Section 434 of the Companies Act, 2013
Section 434 of the Companies Act, 2013
"Transfer of certain pending proceedings"
📘 Bare Act Summary:
Section 434 deals with the transfer of pending legal proceedings under the old Companies Act, 1956 to the newly established Tribunals under the Companies Act, 2013 — i.e., National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).
🔍 Key Provisions:
Transfer of Matters (Sub-section 1):
All matters pending before the Company Law Board (CLB) under the 1956 Act shall stand transferred to the NCLT and be dealt with from the stage they were at before such transfer.
All proceedings related to arbitration, compromise, arrangements, and reconstruction and winding up of companies pending before any District Court or High Court shall also be transferred to the NCLT.
Exceptions / Special Cases (As per Rules and Notifications):
Certain winding-up cases may continue in High Courts if they are at an advanced stage (as per relevant notifications and court orders).
The Central Government may make rules for the transfer process and the manner in which the NCLT will take up such matters.
Appeals (Sub-section 2):
Any appeal against a decision of the CLB (passed before the establishment of NCLT) shall lie with the High Court.
🧑⚖️ Objective:
To consolidate and streamline corporate legal proceedings under one forum — NCLT.
To reduce jurisdictional confusion between CLB, High Courts, and other authorities.
To enhance speedy resolution of corporate disputes.
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