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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Legislative Framework of Corporate Governance in India

Soon after the Selection Committee recommended a Member of the Tribunal, it was discovered that one seat on the Committee had been vacant at the time of the recommendation. A party to a case before that Member challenges the appointment on this ground. What is the legal position under the Companies Act, 2013?

The appointment stands. The Act provides that no appointment of a Member of the Tribunal or Appellate Tribunal is invalid merely because of a vacancy or a defect in the constitution of the Selection Committee, so the challenge fails on that ground alone.

  1. AThe appointment is invalid because the Committee was not fully constituted
  2. BThe appointment is valid only if the Chief Justice of India ratifies it afterwards
  3. CThe appointment is not invalid merely because of the vacancy or a defect in the Committee's constitutionCorrect
  4. DThe appointment is valid only if the vacant seat was that of the Secretary, Ministry of Law and Justice

Explanation

Section 412(5) states that no appointment of Members of the Tribunal or Appellate Tribunal is invalid merely by reason of any vacancy or any defect in the constitution of the Selection Committee. Ratification by the Chief Justice of India is not required, and the identity of the vacant seat does not matter.

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