eCourtsIndia
IndiaCode Laws
Section417
The Companies Act, 2013

Removal of Members

In force From 01 Apr 2014 Act 18 of 2013 As on 16 Oct 2026

Act 18 of 2013 Ministry Corporate Affairs Enacted 29 Aug 2013 In force 01 Apr 2014 Instruments 1

Section 417 of the Companies Act, 2013 deals with removal of Members. The Central Government may, after consultation with the Chief Justice of India, remove from office the President, Chairperson or any Member, who (a) has been adjudged an insolvent; The Act came into force on 01 Apr 2014.

(1) The Central Government may, after consultation with the Chief Justice of India, remove from office the President, Chairperson or any Member, who

(a) has been adjudged an insolvent; or--

(b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or

(c) has become physically or mentally incapable of acting as such President, the Chairperson, or Member; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such President, the Chairperson or Member; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interest:

Provided that the President, the Chairperson or the Member shall not be removed on any of the grounds specified in clauses (b) to (e) without giving him a reasonable opportunity of being heard.

(2) Without prejudice to the provisions of sub-section (1), the President, the Chairperson or the Member shall not be removed from his office except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the Central Government in which such President, the Chairperson or Member had been informed of the charges against him and given a reasonable opportunity of being heard.

(3) The Central Government may, with the concurrence of the Chief Justice of India, suspend from office, the President, the Chairperson or Member in respect of whom reference has been made to the Judge of the Supreme Court under sub-section (2) until the Central Government has passed orders on receipt of the report of the Judge of the Supreme Court on such reference.

(4) The Central Government shall, after consultation with the Supreme Court, make rules to regulate the procedure for the inquiry on the ground of proved misbehaviour or incapacity referred to in subsection (2).

Section 417, 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.

  1. National Company Law Tribunal Bar Association vs Union of India

    Supreme Court of India 01 Aug 2022 Persuasive (Other High Court/Supreme Court Precedent) Reportable

    Court's Decision & Legal Precedent

    While an administrative notification for appointment to the NCLT must be consistent with the statutory provisions of Section 413 of the Companies Act 2013 prescribing a five-year tenure, the Supreme Court will not exercise its Article 32 jurisdiction to extend the tenures of members who have accepted appointment for a shorter period without challenge, when supervening developments such as an ongoing selection process have occurred. The appropriate remedy is to direct future compliance with statutory provisions while allowing the ongoing process to continue. A Bar Association lacks standing to challenge the tenure of members who are not parties to the proceedings and have not themselves raised a grievance.

    On this section: Provides the procedure for removal of Members. The Court rejected the argument that this procedure should be invoked for members whose tenure had expired, distinguishing between removal and expiry of term.

    Read the full order on eCourts India

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.

Made under this section, and citing it

1 instrument states that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.

All subordinate legislation

Questions about Section 417

What have the courts held on Section 417 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: Provides the procedure for removal of Members. The Court rejected the argument that this procedure should be invoked for members whose tenure had expired, distinguishing between removal and expiry of term.

How do I find court cases under Section 417 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 417, section 417 Companies Act, section 417 of the Companies Act. People searching for it also type companies ordinance 417. 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 417 of the Companies Act, and has it changed?

The rules and notifications made under it are where it actually bites, and there is one: most recently NCLT & NCLAT (Procedure for investigation of misbehaviour or incapacity of Chairperson, President and other Members) Rules, 2020 (2020).

When did Section 417 of the Companies Act come into force?

Section 417 of the Companies Act, cited as Companies Act 417, 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

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 16 Oct 2026. This page is not a substitute for legal advice.