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Section 412: Selection of Members of NCLT and NCLAT

Updated 11 October 2026 · Fact-checked

Section 412 of the Companies Act, 2013 lays down how NCLT and NCLAT members are selected. The President of the Tribunal, and the Chairperson and Judicial Members of the Appellate Tribunal, are appointed after consulting the Chief Justice of India. Other Tribunal Members and Technical Members of the Appellate Tribunal are appointed on a Selection Committee's recommendation.

Understand Selection of Members of Tribunal and Appellate Tribunal

The National Company Law Tribunal (NCLT) is constituted under Section 408. The National Company Law Appellate Tribunal (NCLAT) is constituted under Section 410 and hears appeals against orders of the Tribunal and of the National Financial Reporting Authority under the Act. Section 412 answers one question: how do people get appointed to these two bodies?

The Central Government makes the appointments by notification. But the Act does not leave the choice to the government alone. It builds in judicial involvement, so that the Tribunals stay independent.

There are two routes. Route one is consultation with the Chief Justice of India. It applies to the President of the Tribunal, and to the Chairperson and Judicial Members of the Appellate Tribunal. Route two is a Selection Committee recommendation. It applies to the Members of the Tribunal and the Technical Members of the Appellate Tribunal.

The Selection Committee has four members: 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. The MCA Secretary is also the Convener. If votes are equal, the Chairperson has a casting vote.

Finally, the Act protects appointments. No appointment is invalid merely because of a vacancy or a defect in the Committee's constitution. Qualifications for NCLAT members are in Section 411, which is a separate section.

Key rules to remember

Route 1: consultation with CJI (s 412(1)): President of Tribunal + Chairperson and Judicial Members of Appellate Tribunal → appointed after consultation with the Chief Justice of India; The text says 'after consultation'. It does not say 'on recommendation'.
Route 2: Selection Committee (s 412(2)): Members of Tribunal + Technical Members of Appellate Tribunal → appointed on recommendation of the Selection Committee; Sub-section (2) was substituted with effect from 9-2-2018.
Composition of Selection Committee: (a) CJI or his nominee – Chairperson; (b) senior Supreme Court Judge or High Court Chief Justice – Member; (c) Secretary, MCA – Member; (d) Secretary, Ministry of Law and Justice – Member; Four persons in all. Two are judicial and two are Secretaries to the Government.
Casting vote (s 412(2A)): Equality of votes → Chairperson has a casting vote; Only the Chairperson has it.
Convener and procedure (s 412(3), (4)): Convener = Secretary, MCA; the Committee determines its own procedure; The Convener role is separate from being a Member.
Saving clause (s 412(5)): No appointment invalid merely by reason of any vacancy or any defect in constitution of the Selection Committee; Protects appointments already made.

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

Use this method for any question on who appoints Tribunal members, how the Selection Committee works, or whether an appointment is valid.

1Identify the post in the question: President of NCLT, Member of NCLT, Chairperson of NCLAT, Judicial Member of NCLAT or Technical Member of NCLAT.
2Decide the route. President, NCLAT Chairperson and Judicial Members: consultation with the Chief Justice of India. Tribunal Members and NCLAT Technical Members: Selection Committee recommendation.
3If the Selection Committee is involved, state its composition in the order of clauses (a) to (d), and name the Chairperson.
4Apply the procedural points the facts raise: the MCA Secretary is Convener, the Committee decides its own procedure, and the Chairperson has a casting vote on a tie.
5Check the facts for a vacancy or a defect in the Committee's constitution. If present, apply Section 412(5).
6Add that the Central Government makes the appointment by notification (Sections 408 and 410), and that qualifications are separate (Section 411).
7Write a short conclusion that answers the exact question asked.

Quickest way: Two routes, four members

When to use it: Use when you have little time or the question asks only for composition or the appointing process.

Say: President, NCLAT Chairperson and Judicial Members go through consultation with CJI.
Say: all other Tribunal Members and NCLAT Technical Members go through the Selection Committee.
List the Committee: CJI or nominee (Chair), senior SC Judge or HC Chief Justice, MCA Secretary, Law Secretary.
Add: MCA Secretary is Convener; Chair has casting vote; vacancy or defect does not invalidate appointments.

Common mistakes in Selection of Members of Tribunal and Appellate Tribunal

Saying the Selection Committee recommends every Tribunal appointment.
Students remember the Committee and forget sub-section (1).
Fix: Tie the Committee only to Members of the Tribunal and Technical Members of the Appellate Tribunal. The President, NCLAT Chairperson and Judicial Members need consultation with the CJI.
Listing the Committee with the wrong people, such as the Chairperson of NCLAT or the Attorney General.
Guessing from general knowledge instead of the text.
Fix: Memorise four: CJI or nominee, senior SC Judge or HC Chief Justice, MCA Secretary, Law and Justice Secretary.
Treating the MCA Secretary as the Chairperson.
The MCA Secretary has a prominent role as Convener.
Fix: The Chairperson is the CJI or his nominee. The MCA Secretary is a Member and the Convener.
Saying an appointment is void because the Committee had a vacancy.
Students ignore sub-section (5).
Fix: State that no appointment is invalid merely by reason of any vacancy or any defect in the constitution of the Selection Committee.
Mixing Section 412 with Section 411 qualifications.
The sections are adjacent in the syllabus.
Fix: Section 412 is about who selects and how. Section 411 is about who is eligible. Keep the two answers separate.

Worked examples

Example 1

The Central Government proposes to appoint a Technical Member of the National Company Law Appellate Tribunal. Explain the process under Section 412 and who sits on the body that makes the recommendation.

Show the solution

Provision: Under Section 412(2), Members of the Tribunal and the Technical Members of the Appellate Tribunal are appointed on the recommendation of a Selection Committee.
Analysis: A Technical Member of NCLAT falls in this category. The consultation route in sub-section (1) applies only to the President of the Tribunal and to the Chairperson and Judicial Members of the Appellate Tribunal.
Composition: 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, all as Members.
Procedure: The MCA Secretary is the Convener. The Committee determines its own procedure. On equality of votes, the Chairperson has a casting vote.
Conclusion: The Central Government appoints the person by notification, acting on the Committee's recommendation.

Answer: A Technical Member of NCLAT is appointed on the recommendation of the four-member Selection Committee under Section 412(2), headed by the CJI or his nominee, with the MCA Secretary as Convener.

Example 2

A Selection Committee recommended a person as a Member of the NCLT. Later it was found that one seat on the Committee had been vacant at the time of the recommendation. A shareholder argues the appointment is invalid. Advise.

Show the solution

Provision: Section 412(2) requires appointment of Members of the Tribunal on the Selection Committee's recommendation.
Analysis of facts: The Committee met with a vacancy, which is a defect in its full constitution.
Rule: 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.
Application: The only ground raised is the vacancy. The word 'merely' means the vacancy alone cannot invalidate the appointment.
Conclusion: The argument fails on this ground alone.

Answer: The appointment is not invalid. Under Section 412(5), a vacancy or defect in the Selection Committee's constitution does not by itself invalidate the appointment.

Exam tips

Draw a two-line split in your answer: consultation with CJI for top posts, Selection Committee for the rest. Examiners reward this clarity.
In case-based questions, check the facts for a tie vote, a vacancy or a defect. Each points to a specific sub-section.
Quote the key phrases exactly: 'after consultation with the Chief Justice of India' and 'on the recommendation of a Selection Committee'.
Mention the 2018 substitution of sub-section (2) only as a side note, and do not let it take space from the main answer.
Link briefly to Sections 408, 410 and 411 so your answer shows the full framework.

Practice questions from Legislative Framework of Corporate Governance in India

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 members of NCLT and NCLAT?

The Central Government appoints them by notification. Section 412 sets the process. The top posts need consultation with the Chief Justice of India, and other posts need a Selection Committee recommendation.

Who is the Chairperson of the Selection Committee under Section 412?

The Chief Justice of India or his nominee is the Chairperson. If votes are equal, the Chairperson has a casting vote.

Who is the Convener of the Selection Committee?

The Secretary, Ministry of Corporate Affairs, is the Convener under Section 412(3). He is also a Member of the Committee under clause (c).

Is an appointment invalid if the Selection Committee was not properly constituted?

Not merely for that reason. Section 412(5) says no appointment is invalid merely because of any vacancy or any defect in the constitution of the Selection Committee.

Does Section 412 give the qualifications of NCLAT members?

No. Qualifications of the Chairperson, Judicial Members and Technical Members of the Appellate Tribunal are in Section 411. Section 412 deals only with selection.