Selection of Members of Tribunal and Appellate Tribunal
Section 412 of the Companies Act, 2013 deals with selection of Members of Tribunal and Appellate Tribunal. The President of the Tribunal and the chairperson and Judicial Members of the Appellate Tribunal, shall be appointed after consultation with the Chief Justice of India. The Act came into force on 01 Apr 2014.
(1) The President of the Tribunal and the chairperson and Judicial Members of the Appellate Tribunal, shall be appointed after consultation with the Chief Justice of India.
1[(2) The Members of the Tribunal and the Technical Members of the Appellate Tribunal shall be appointed on the recommendation of a Selection Committee consisting of--
(a) Chief Justice of India or his nominee--Chairperson;
(b) a senior Judge of the Supreme Court or Chief Justice of High Court--Member;
(c) Secretary in the Ministry of Corporate Affairs--Member; and
(d) Secretary in the Ministry of Law and Justice--Member.
(2A) Where in a meeting of the Selection Committee, there is equality of votes on any matter, the Chairperson shall have a casting vote.]
(3) The Secretary, Ministry of Corporate Affairs shall be the Convener of the Selection Committee.
(4) The Selection Committee shall determine its procedure for recommending persons under sub-section (2).
(5) No appointment of the Members of the Tribunal or the Appellate Tribunal shall be invalid merely by reason of any vacancy or any defect in the constitution of the Selection Committee.
Section 412, The Companies Act, 2013 (Act 18 of 2013).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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National Company Law Tribunal Bar Association vs Union of India
Court's Decision & Legal Precedent
On a challenge to the three-year tenure fixed by the notification appointing 28 NCLT Members, the Court recorded that the Selection Committee chaired by the Chief Justice of India had itself found no express provision in the Rules empowering it to revise the term of office of sitting Members, and declined under Article 32 to direct an extension of tenure where the Committee had already set the fresh selection process in motion and the Union had acted on its recommendations.
On this section: Addresses the powers of the Selection Committee constituted under Section 412 for the selection of NCLT Members, holding it has no express power to revise a serving Member's term of office.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… In Madras Bar Association v. Union of India (2015) (supra), this Court expressed its displeasure in the constitution of the Search-cum-Selection Committee which is contrary to the principles laid down in its earlier judgment in Union of India v. Madras Bar Association (2010) (supra). Section 412 (2) of the Companies Act, 2013 was held to be not valid as it was found to be against the binding precedents of this Court in Union of India v. Madras Bar Association (2010) (supra). A direction was issued to remove the deficiency in the constitution of the Search-cum-Selection Committee by bringing the same …
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… APPOINTMENT OF MEMBERS OF THE NCLT AND THE NCLAT NOT CONTRARY TO THIS COURT'S JUDGMENTS . 13. Shri Rohatgi has argued that contrary to the judgments in Madras Bar Association (I) (supra) and Madras Bar Association (III) (supra), Section 412(2) of the Companies Act, 2013 continued on the statute book, as a result of which, the two Judicial Members of the Selection Committee get outweighed by three bureaucrats. 14. On 03.01.2018, the Companies Amendment Act, 2017 was brought into force by which Section 412 of the Companies Act, 2013 was amended as …
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… APPOINTMENT OF MEMBERS OF THE NCLT AND THE NCLAT NOT CONTRARY TO THIS COURT'S JUDGMENTS . 13. Shri Rohatgi has argued that contrary to the judgments in Madras Bar Association (I) (supra) and Madras Bar Association (III) (supra), Section 412(2) of the Companies Act, 2013 continued on the statute book, as a result of which, the two Judicial Members of the Selection Committee get outweighed by three bureaucrats. 14. On 03.01.2018, the Companies Amendment Act, 2017 was brought into force by which Section 412 of the Companies Act, 2013 was amended as …
Made under this section, and citing it
4 instruments name this provision in its title or its text without being made under it.
- In exercise of the powers conferred by section 469 read with section 414 of the Companies Act, 2013 (18 of 2013)Notification 2016
- Finalized National Company Law Appellate Tribunal service condition Rules of Chairperson and Members - yet to be notified.Rule 2015
- Finalized National Company Law Tribunal service condition Rules of President and Members - yet to be notified.Rule 2015
- The National Company Law Appellate Tribunal (Salaries and Allowances and other terms and conditions of service of the Chairperson and other Members) Rules, 2015.Rule 2015
Questions about Section 412
What have the courts held on Section 412 of the Companies Act?
National Company Law Tribunal Bar Association vs Union of India (01 Aug 2022) is the leading judgment on this section among those set out below: Addresses the powers of the Selection Committee constituted under Section 412 for the selection of NCLT Members, holding it has no express power to revise a serving Member's term of office.
How do I find court cases under Section 412 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 412, section 412 Companies Act, section 412 of the Companies Act. People searching for it also type companies act 2006 section 412. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with National Company Law Tribunal Bar Association vs Union of India (01 Aug 2022).
What should I read with Section 412 of the Companies Act, and has it changed?
4 instruments name it without being made under it, most recently In exercise of the powers conferred by section 469 read with section 414 of the Companies Act, 2013 (18 of 2013) (2016), then Finalized National Company Law Appellate Tribunal service condition Rules of Chairperson and Members - yet to be notified. (2015).
When did Section 412 of the Companies Act come into force?
Section 412 of the Companies Act, cited as Companies Act 412, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.