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Setting Up of Business, Industrial and Labour Laws · Selection of Business Organization

Selection of Members of NCLT and NCLAT under Companies Act

Updated 11 October 2026 · Fact-checked

Section 412 of the Companies Act, 2013 says how NCLT and NCLAT members are appointed. The President and the NCLAT chairperson and Judicial Members are appointed after consulting the Chief Justice of India. Other members and Technical Members are appointed on a Selection Committee's recommendation. Answer by naming the post, then the route.

Understand Selection of Members of Tribunal and Appellate Tribunal

The National Company Law Tribunal (NCLT) is constituted by the Central Government by notification under Section 408. It has a President and such number of Judicial and Technical Members as the Central Government considers necessary. It exercises the powers and functions given to it by the Companies Act or any other law.

The National Company Law Appellate Tribunal (NCLAT) is constituted under Section 410. It has a chairperson and such number of Judicial and Technical Members as the Central Government considers fit. It hears appeals against orders of the NCLT and of the National Financial Reporting Authority under the Act. It also hears appeals against directions, decisions or orders referred to in Section 53A of the Competition Act, 2002. So NCLT is the first forum and NCLAT is the appeal forum.

Section 412 deals with who picks the members. It has two routes. Route one covers the top judicial posts: the President of the NCLT and the chairperson and Judicial Members of the NCLAT. They are appointed after consultation with the Chief Justice of India. Route two covers the Members of the NCLT and the Technical Members of the NCLAT. They are appointed on the recommendation of a Selection Committee.

The Selection Committee has four persons: the Chief Justice of India or his nominee as Chairperson; a senior Judge of the Supreme Court or a Chief Justice of a High Court; the Secretary in the Ministry of Corporate Affairs; and the Secretary in the Ministry of Law and Justice. If votes are equal, the Chairperson has a casting vote. The Secretary, Ministry of Corporate Affairs, is the Convener. The Committee decides its own procedure. No appointment is invalid merely because of a vacancy or a defect in the Committee's constitution.

The LLP Act, 2008 uses the same bodies. It defines the Tribunal as the NCLT constituted under Section 408 of the Companies Act, 2013, and the Appellate Tribunal as the NCLAT constituted under Section 410. So LLP matters also go to these forums.

Key rules to remember

Constitution of NCLT
Section 408: Central Government notification; President + Judicial and Technical Members
Number of members is as the Central Government deems necessary.
Constitution of NCLAT
Section 410: Central Government notification; chairperson + Judicial and Technical Members
Hears appeals against NCLT and NFRA orders under the Act, and certain Competition Act, 2002 orders (Section 53A).
Consultation route (Section 412(1))
President of NCLT, and chairperson and Judicial Members of NCLAT: appointed after consultation with the Chief Justice of India
This is consultation, not a Selection Committee recommendation.
Selection Committee route (Section 412(2))
Members of NCLT and Technical Members of NCLAT: appointed on recommendation of Selection Committee
Committee: CJI or nominee (Chairperson); senior Supreme Court Judge or High Court Chief Justice; Secretary, MCA; Secretary, Law and Justice.
Casting vote and Convener
Equality of votes: Chairperson has a casting vote (412(2A)); Secretary, MCA is Convener (412(3))
The Committee decides its own procedure (412(4)).
Validity of appointments
No appointment invalid merely due to a vacancy or defect in constitution of the Committee (412(5))
This protects appointments already made.

How to solve Selection of Members of Tribunal and Appellate Tribunal questions

Use this method for any question on how NCLT or NCLAT members are selected or on the two Tribunals.

  1. 1Identify the post asked about: NCLT President, NCLT Member, NCLAT chairperson, NCLAT Judicial Member or NCLAT Technical Member.
  2. 2State the constituting provision: Section 408 for NCLT, Section 410 for NCLAT, both by Central Government notification.
  3. 3Pick the route under Section 412. President, chairperson and Judicial Members: consultation with the Chief Justice of India. NCLT Members and Technical Members: Selection Committee recommendation.
  4. 4If the Committee is involved, list its four members, the Chairperson's casting vote and the Secretary, MCA as Convener.
  5. 5Add that the Committee determines its own procedure.
  6. 6Apply Section 412(5) if the facts mention a vacancy or defect in the Committee.
  7. 7Write a one-line conclusion that answers the question asked.

Quickest way: Two-route split for Section 412

When to use it: Use when a short question asks who appoints a given member or who sits on the Selection Committee.

  1. Ask: is the post top judicial (NCLT President, NCLAT chairperson or Judicial Member)? If yes, write: consultation with the Chief Justice of India.
  2. If not (NCLT Member or NCLAT Technical Member), write: Selection Committee recommendation.
  3. List the Committee as CJI or nominee, senior Supreme Court Judge or High Court Chief Justice, Secretary MCA, Secretary Law and Justice.
  4. Finish with the casting vote, the Convener and the no-invalidity rule.

Common mistakes in Selection of Members of Tribunal and Appellate Tribunal

  • Saying all members are appointed on the Selection Committee's recommendation.

    Students remember the Committee and forget Section 412(1).

    Fix: Split by post. The President and the NCLAT chairperson and Judicial Members need consultation with the Chief Justice of India.

  • Mixing up the Chairperson and the Convener of the Selection Committee.

    Both are roles in the same Committee and the names sound similar.

    Fix: The Chief Justice of India or his nominee is Chairperson. The Secretary, Ministry of Corporate Affairs is Convener.

  • Listing the Secretary, Ministry of Finance in the Committee.

    Students guess the ministries instead of recalling the text.

    Fix: The two Secretaries are from the Ministry of Corporate Affairs and the Ministry of Law and Justice.

  • Treating NCLT and NCLAT as the same body, or saying NCLAT is constituted under Section 408.

    The names are similar and the section numbers are close.

    Fix: NCLT is Section 408 and is the first forum. NCLAT is Section 410 and hears appeals.

  • Saying an appointment is void because the Selection Committee had a vacancy.

    Students overlook sub-section (5).

    Fix: State that no appointment is invalid merely by reason of a vacancy or a defect in the Committee's constitution.

Worked examples

Example 1

Explain how the Members of the National Company Law Tribunal are selected under the Companies Act, 2013. Who is on the Selection Committee?

Show the solution
  1. Provision: Section 408 constitutes the NCLT by Central Government notification, with a President and Judicial and Technical Members. Section 412 governs selection.
  2. Analysis: The President is appointed after consultation with the Chief Justice of India. The Members of the Tribunal are appointed on the recommendation of a Selection Committee under Section 412(2).
  3. The Committee has: the Chief Justice of India or his nominee as Chairperson; a senior Judge of the Supreme Court or Chief Justice of a High Court; the Secretary in the Ministry of Corporate Affairs; and the Secretary in the Ministry of Law and Justice.
  4. The Chairperson has a casting vote on equality of votes. The Secretary, MCA is Convener. The Committee decides its own procedure.

Answer: NCLT Members are appointed on the Selection Committee's recommendation under Section 412(2). The Committee comprises the CJI or his nominee (Chairperson), a senior Supreme Court Judge or High Court Chief Justice, and the Secretaries of the Ministries of Corporate Affairs and of Law and Justice.

Example 2

A Selection Committee meeting for NCLAT Technical Members was held when one seat on the Committee was vacant. Rahul, a company secretary, argues that the resulting appointments are invalid. Advise.

Show the solution
  1. Provision: Technical Members of the NCLAT are appointed on the Selection Committee's recommendation under Section 412(2).
  2. Analysis: Section 412(5) says no appointment of Members of the Tribunal or the Appellate Tribunal is invalid merely by reason of any vacancy or any defect in the constitution of the Selection Committee.
  3. The only ground Rahul raises is the vacancy. No other defect is stated.
  4. Equality of votes, if any, would be resolved by the Chairperson's casting vote under Section 412(2A).

Answer: Rahul's argument fails. Under Section 412(5), the appointments are not invalid merely because of a vacancy in the Selection Committee.

Exam tips

  • Write the section number with each point: 408 for NCLT, 410 for NCLAT, 412 for selection.
  • Always split the answer into the consultation route and the Selection Committee route.
  • Use a short list for the four Committee members. It is easy to score marks on and easy to check.
  • In a facts question, look for vacancy or defect in the Committee and apply Section 412(5).
  • For a difference between NCLT and NCLAT, say NCLT is the first forum and NCLAT hears appeals against its orders.

Practice questions from Selection of Business Organization

Selection of Members of Tribunal and Appellate Tribunal in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Selection of Members of Tribunal and Appellate Tribunal: frequently asked questions

Who appoints the President of the NCLT?

The President is appointed after consultation with the Chief Justice of India under Section 412(1). The Tribunal itself is constituted by the Central Government by notification under Section 408.

What is the difference between NCLT and NCLAT?

NCLT is constituted under Section 408 and exercises the powers given to it by the Act. NCLAT is constituted under Section 410 and hears appeals against orders of the NCLT and of the National Financial Reporting Authority under the Act. It also hears certain Competition Act, 2002 matters.

Who is the Convener of the Selection Committee?

The Secretary, Ministry of Corporate Affairs is the Convener under Section 412(3). The Chairperson is the Chief Justice of India or his nominee.

What happens if the Selection Committee votes are tied?

The Chairperson has a casting vote under Section 412(2A). So a tie is resolved by the Chairperson.

Are NCLT and NCLAT relevant to LLPs?

Yes. The LLP Act, 2008 defines the Tribunal as the NCLT constituted under Section 408 and the Appellate Tribunal as the NCLAT constituted under Section 410 of the Companies Act, 2013.