Section 435 of the Companies Act, 2013
Section 435 of the Companies Act, 2013
Title: Establishment of Special Courts
Bare Act Summary (Simplified):
Section 435 provides for the establishment of Special Courts by the Central Government to ensure speedy trial of offences under the Companies Act.
🔹 Key Provisions:
Establishment:
The Central Government may, by notification, establish or designate one or more Special Courts:
For the purpose of speedy trial of offences under this Act.
These may be newly created courts or existing courts designated as Special Courts.
Composition:
A Special Court shall consist of:
A Single Judge appointed by the Central Government with the concurrence of the Chief Justice of the High Court.
The judge must be:
A Sessions Judge or an Additional Sessions Judge, in case of offences punishable with imprisonment of two years or more.
A Metropolitan Magistrate or a Judicial Magistrate of the First Class, for other offences.
🔹 Purpose and Use:
To reduce pendency of corporate cases in regular courts.
To expedite trial of serious corporate offences (like fraud, non-compliance, etc.).
Ensures specialized handling of cases under the Companies Act, 2013.
🔹 Example:
If a company and its directors are charged with serious offences like fraud (Section 447) or false statements, the case will be tried in a Special Court established under Section 435, not in regular criminal court.
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