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After the IFSCA is constituted, it is found that one Finance Ministry nominee was defectively appointed and one seat reserved for a clause (d) Member is vacant. The Authority had already approved a licensing decision. A applicant challenges the decision solely on these grounds. What is the position?

The decision stands. Section 9 provides that no act or proceeding of the Authority is invalid merely because of a vacancy or defect in its constitution, or a defect in the appointment of a Member. No ratification or voting test is required.

  1. AThe decision is invalid because the Authority was not fully constituted
  2. BThe decision is invalid only if the defective Member voted
  3. CThe decision is valid unless the Central Government ratifies it
  4. DThe decision is not invalid merely because of the vacancy or the defect in appointmentCorrect

Explanation

Section 9 protects acts and proceedings of the Authority from invalidity merely because of a vacancy or defect in its constitution, or a defect in a Member's appointment. The option requiring ratification or a vote test adds conditions the section does not contain.

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