Section 424 of the Companies Act, 2013
📘 Section 424 of the Companies Act, 2013
Title: Procedure before Tribunal and Appellate Tribunal
✅ Summary:
Section 424 lays down the procedure to be followed by the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) in disposing of matters.
🧾 Key Provisions:
Not bound by Civil Procedure Code (CPC):
The Tribunal and Appellate Tribunal are not bound by the Code of Civil Procedure, 1908, but they are guided by the principles of natural justice.
Power to regulate procedure:
The Tribunals have the discretion to regulate their own procedures in accordance with the provisions of the Act or any rules made thereunder.
Powers of Civil Court:
The Tribunal and Appellate Tribunal have the same powers as a civil court under the CPC, 1908, while trying a suit, in respect of the following matters:
Summoning and enforcing attendance of persons;
Requiring discovery and production of documents;
Receiving evidence on affidavits;
Issuing commissions for examination of witnesses or documents;
Dismissing a representation for default or deciding it ex parte;
Any other prescribed matters.
Use of technology:
Tribunals may also use video conferencing, electronic filing, and other modern technology for hearing and disposing of cases.
🧑⚖️ Purpose:
To provide a simplified, speedy, and cost-effective dispute resolution mechanism in company matters without getting bogged down by technicalities of civil procedure.
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