Sections 40-44 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 40 to 44 explain how the Appellate Tribunal works: how it regulates its procedure, what civil-court powers it has, how its orders are executed, how business is divided among Benches, how cases move between Benches and what happens when two Members disagree. Section 44 also says who counts as a public servant.
As per the consolidated text consulted, the Appellate Tribunal is not bound by the procedure of the Code of Civil Procedure, 1908, but is guided by the principles of natural justice and regulates its own procedure (section 40(1)). It has the powers of a civil court on nine listed matters including review (section 40(2)). Its orders are executable as a decree of a civil court (section 40(3)). The Chairperson distributes business and may transfer cases between Benches (sections 41, 42). A split Bench is decided by majority (section 43).
How these sections came in
Sections 40 to 44 are in Chapter V (Appellate Tribunal), inserted by the Benami Transactions (Prohibition) Amendment Act, 2016 with the rest of sections 7 to 55 of the principal Act. The text is checked against the Gazette of India copy of that Act (assent 10 August 2016). The 2016 changes were brought into force by notification; the date is not in the sources consulted. The earlier parts of the Chapter are covered in our articles on sections 30 to 34 and sections 35 to 39.
If you are preparing an appeal and want to know what the Tribunal can do with your case, a legal dispute resolution review of these powers at the outset will help you plan evidence and arguments.
Section 40(1): its own procedure
"The Appellate Tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice and, subject to the other provisions of this Act, the Appellate Tribunal shall have powers to regulate its own procedure." This is the same formula that section 11 uses for the Adjudicating Authority; see our article on sections 7 to 11.
Section 40(2): civil-court powers
For discharging its functions, the Tribunal has "the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit", in respect of:
| Clause | Matter |
|---|---|
| (a) | Summoning and enforcing the attendance of any person and examining him on oath |
| (b) | Requiring the discovery and production of documents |
| (c) | Receiving evidence on affidavits |
| (d) | Subject to sections 123 and 124 of the Indian Evidence Act, 1872, requisitioning any public record or document or copy from any office |
| (e) | Issuing commissions for the examination of witnesses or documents |
| (f) | Reviewing its decisions |
| (g) | Dismissing a representation for default or deciding it ex parte |
| (h) | Setting aside any order of dismissal of any representation for default or any order passed by it ex parte |
| (i) | Any other matter which may be prescribed by the Central Government |
Compare section 19 for the first-level authorities. The Tribunal's list adds review of its own decisions (f), dismissal for default or decision ex parte (g), and setting aside such orders (h). A party who does not appear can therefore have the representation dismissed or decided ex parte, and can apply to have that set aside. Clause (f) allows review of decisions; the text does not say within what time or on what grounds, and rules are not in the sources consulted. Clause (i) allows more matters to be added by the Central Government.
Section 40(3) and (4): execution
Section 40(3). "An order made by the Appellate Tribunal under this Act shall be executable by it as a decree of civil court and, for this purpose, the Appellate Tribunal shall have all the powers of a civil court."
Section 40(4). "Notwithstanding anything contained in sub-section (3), the Appellate Tribunal may transmit any order made by it to a civil court having jurisdiction and the civil court shall execute the order as if it were a decree made by that court."
So the Tribunal can execute its own order as a decree, or send it to a civil court that must execute it as if it were that court's decree. The choice is the Tribunal's.
Section 40(5): judicial proceedings
"All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code and the Appellate Tribunal shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973." These references are quoted as printed and not explained; check the current penal and procedural law for the corresponding provisions.
Section 41: distribution of business
"Where any Benches are constituted, the Chairperson may, from time to time, by notification, make provision as to the distribution of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with by each Bench." The distribution is by notification of the Chairperson.
Section 42: transfer of cases
"On the application of any of the parties and notice to the parties, and after hearing them, or on his own motion without any notice, the Chairperson of the Appellate Tribunal may transfer any case pending before one Bench, for disposal, to any other Bench."
There are two routes. A party can apply, with notice to the parties and a hearing. Or the Chairperson can act on his own motion "without any notice". Either way the power belongs to the Chairperson.
Section 43: decision by majority
"If the Members of a Bench consisting of two Members differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson of the Appellate Tribunal who shall either hear the point or points himself or refer the case for hearing on the point or points by one or more of the other Members and the point or points shall be decided according to the opinion of the majority of the Members of the Appellate Tribunal who have heard the case, including those who first heard it."
The steps for a split Bench of two Members are:
- The two Members state the point or points of difference.
- They refer the matter to the Chairperson.
- The Chairperson either hears the point himself or refers it to one or more of the other Members.
- The point is decided by the majority of the Members who have heard the case, including those who first heard it.
Section 44: public servants
"The Chairperson, Members and other officers and employees of the Appellate Tribunal, the Adjudicating Authority, Approving Authority, Initiating Officer, Administrator and the officers subordinate to all of them shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code." The list covers both the Tribunal and the authorities named in section 18(1). The reference to the Indian Penal Code is quoted as printed; check the current penal law for the corresponding provision.
Who is affected
- Appellants and respondents, who should plan for the Tribunal's powers to summon, examine on oath, take affidavits and decide ex parte if a party stays away.
- Parties who want a case moved, who can apply under section 42 with notice.
- Practitioners, who will note that review of decisions is listed among the Tribunal's powers.
Practical example
Meenal Pathak's appeal is listed before a Bench of two Members who disagree on whether a property was bought for adequate consideration. Under section 43 they state the point of difference and refer it to the Chairperson. The Chairperson refers it to a third Member. The point is decided according to the opinion of the majority of the Members who heard the case, including the two who first heard it. Separately, Meenal's counsel wants the case moved to a Bench in another city; section 42 allows her to apply, with notice to the parties, for the Chairperson to transfer it.
Other laws and later amendments
Sections 40 and 44 name the Code of Civil Procedure, 1908, the Indian Evidence Act, 1872, the Indian Penal Code and the Code of Criminal Procedure, 1973, all quoted as printed. Check the current procedural, evidence and penal law for the corresponding provisions. Later amendments to the Act are not in the sources consulted; check them.
Need help preparing for the Tribunal?
How you present an appeal, what evidence you file and what you do if a party fails to appear all depend on the Tribunal's powers. Our legal dispute resolution team can plan the appeal with you and read the order against these sections.
Key takeaways
- The Tribunal is not bound by the Code of Civil Procedure, 1908, and is guided by natural justice.
- It has civil-court powers on nine listed matters, including review and ex parte decisions.
- Its orders are executable as a decree, or it may transmit them to a civil court.
- The Chairperson distributes business and may transfer cases between Benches, on application or on his own motion.
- A split Bench of two Members is resolved by majority after a reference to the Chairperson.
Read next
- Sections 35 to 39: removal, vacancies, resignation and staff of the Appellate Tribunal
- Sections 45 and 46: civil court bar and appeal to the Appellate Tribunal
- Sections 47 and 48: rectification of mistakes and right to representation
- Criminal courts: hierarchy, jurisdiction and powers under CrPC
Disclaimer: Based on a third-party consolidated text of the Prohibition of Benami Property Transactions Act, 1988 as amended by the Benami Transactions (Prohibition) Amendment Act, 2016, checked against the Gazette of India copy of that amending Act (11 August 2016), as consulted on 2 October 2026. The commencement notification, the rules and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.