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CS Professional · Drafting, Pleadings and Appearances · Applications, Petitions and Appeals under Companies Act, 2013

A secretary drafts a petition stating that the National Company Law Tribunal is constituted by the Central Government by notification, with a President and such number of Judicial and Technical members as the Central Government deems necessary. Another draft says the Appellate Tribunal has a chairperson and members, with the number of members capped at eleven. Which recital is correct on the current text?

Only the first recital is correct. Section 408 lets the Central Government appoint as many Judicial and Technical members as it deems necessary, and the words 'not exceeding eleven' in section 410 were omitted w.e.f. 22 January 2021, so the NCLAT cap no longer applies.

  1. AOnly the first is correct; the cap of eleven words was omitted from the Appellate Tribunal provisionCorrect
  2. BOnly the second is correct; the cap of eleven remains
  3. CBoth are correct as drafted
  4. DNeither is correct because both bodies are constituted by Parliament directly

Explanation

Section 408 has the NCLT with a President and members as the Central Government deems necessary. In section 410 the words 'not exceeding eleven' were omitted by Act 29 of 2020 w.e.f. 22-1-2021, so the cap no longer exists. Both bodies are constituted by Central Government notification.

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