Section 442 of the Companies Act, 2013
Section 442 of the Companies Act, 2013
Title: Mediation and Conciliation Panel
Bare Act Summary:
Establishment of Panel:
The Central Government shall maintain a Mediation and Conciliation Panel consisting of experts for mediation between parties during proceedings under the Companies Act, 2013.
Constitution of the Panel:
The Tribunal (NCLT) or the Appellate Tribunal (NCLAT) may refer any proceeding (with mutual consent of the parties) for mediation to this panel.
Qualifications and Manner of Selection:
The panel shall be constituted by the Central Government as per prescribed rules.
Members are selected from a list of experts in fields like law, finance, management, etc.
Time Limit for Completion:
Mediation proceedings shall be completed within three months, with a possible extension of another three months.
Procedure:
The manner and procedure of mediation or conciliation are to be prescribed by rules made by the Central Government.
Objective of Section 442:
To promote alternative dispute resolution (ADR) mechanisms like mediation and conciliation, helping to:
Reduce litigation load,
Promote faster resolution,
Encourage amicable settlements.
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