Sections 408 to 418 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 408 to 418 provide for the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT): how they are constituted, the kinds of members, how members are chosen, resigned or removed, and how they are staffed. Section 418A, placed after section 418, deals with the NCLAT's benches.
The Central Government constitutes the NCLT (a President plus Judicial and Technical Members) and the NCLAT (a Chairperson plus Judicial and Technical Members) by notification. The NCLAT hears appeals against NCLT and NFRA orders under the Act and certain Competition Act matters. Members are chosen through consultation and a committee, may resign on notice, and can be removed only on the grounds and by the procedure in section 417. The qualifications, term and service conditions of members are also governed by tribunal-reform legislation, so do not treat the figures in the Companies Act text as settled current law.
A note on the tribunal-reform overlay
Before the section-by-section text, one caution. Qualifications, appointment, term and other service conditions of tribunal members are also governed by tribunal-reform legislation. The Tribunals Reforms Act, 2021 set these for tribunals generally, the Supreme Court struck down core parts of that Act, and a Tribunal Reforms Bill, 2026 is before Parliament. Section 417A of the Companies Act itself points to the Finance Act, 2017 for members of the Appellate Tribunal appointed after a specified commencement. So the Companies Act text below explains the structure, but for the current position on who may be appointed, for how long and on what terms, you must check the law in force. This article does not give tenure or age limits, because they cannot be stated as settled current law.
Section 408: the NCLT
The Central Government shall, by notification, constitute, from a date specified in it, a Tribunal known as the National Company Law Tribunal. It consists of a President and such number of Judicial and Technical Members as the Central Government considers necessary, appointed by notification. It exercises the powers and functions conferred on it by or under the Act or any other law. The last phrase matters, because the NCLT also acts under the Insolvency and Bankruptcy Code, 2016. For how the NCLT works in practice, see sections 407 to 434: NCLT, NCLAT and Special Courts.
If you are preparing an application or appeal before the Tribunal, our legal dispute resolution team can help.
Section 409: who may be appointed to the NCLT
| Post | Categories of persons listed in section 409 |
|---|---|
| President | A person who is or has been a High Court Judge |
| Judicial Member | A person who is or has been a High Court Judge; a person who is or has been a District Judge; or an advocate of a court. An Explanation counts judicial or tribunal office and posts requiring special knowledge of law in computing the advocate's period |
| Technical Member | A member of the Indian Corporate Law Service or Indian Legal Service (of the rank stated in the text); a chartered accountant, cost accountant or company secretary in practice; a person of proven ability, integrity and standing with special knowledge in industrial finance, industrial management, industrial reconstruction, investment and accountancy; or a presiding officer of a Labour Court, Tribunal or National Tribunal under the Industrial Disputes Act, 1947 |
The section attaches minimum periods to each category. Those qualification periods are part of what the tribunal-reform legislation also addresses, so they are not repeated here.
Section 410: the NCLAT
The Central Government shall, by notification, constitute an Appellate Tribunal, the National Company Law Appellate Tribunal, consisting of a Chairperson and such number of Judicial and Technical Members as it deems fit. It hears appeals against:
- (a) orders of the Tribunal or of the National Financial Reporting Authority under the Act; and
- (b) any direction, decision or order referred to in section 53A of the Competition Act, 2002.
The limit of "not exceeding eleven" members was omitted in 2020. Clause (a) gained the reference to the NFRA in 2018. Appeals under the Insolvency and Bankruptcy Code are also heard by the NCLAT, as section 418A shows.
Proposed change (Corporate Laws (Amendment) Bill, 2026). Clause 94 of the Bill would amend section 410(a) by inserting, after the words "National Financial Reporting Authority", the words "or of the Valuation Authority". The NCLAT would then hear appeals against orders of the Valuation Authority as well. This is pending and not law.
Section 411: who may be appointed to the NCLAT
The Chairperson is a person who is or has been a Judge of the Supreme Court or the Chief Justice of a High Court. A Judicial Member is a person who is or has been a High Court Judge or a Judicial Member of the Tribunal for a stated period. A Technical Member is a person of proven ability, integrity and standing with special knowledge and professional experience in industrial finance, industrial management, industrial reconstruction, investment and accountancy. Again the minimum periods in the text are subject to the reform-legislation caution above.
Section 412: selection
| Sub-section | Rule |
|---|---|
| (1) | The NCLT President, and the NCLAT Chairperson and Judicial Members, are appointed after consultation with the Chief Justice of India |
| (2), (2A) | Other Tribunal Members, and NCLAT Technical Members, are appointed on the recommendation of a Selection Committee. The text lists the Chief Justice of India or nominee (Chairperson), a senior Supreme Court Judge or High Court Chief Justice, and the Secretaries of the Corporate Affairs and Law and Justice ministries. The Chairperson has a casting vote |
| (3) and (4) | The Corporate Affairs Secretary convenes the Committee, which decides its own procedure |
| (5) | No appointment is invalid merely because of a vacancy or a defect in the Committee's constitution |
Sections 413 to 416: term, terms of service, acting heads, resignation
Section 413 prescribes a term, eligibility for re-appointment, age limits and a lien rule. Section 414 says salary, allowances and other terms and conditions of service are as prescribed, but cannot be varied to a member's disadvantage after appointment. These are the provisions most directly overtaken by the tribunal-reform legislation, which is why this article gives no figures.
Section 415 makes the senior-most Member act as President or Chairperson on a vacancy, or while the head is absent or ill. Under section 416, a President, Chairperson or Member may resign by written notice to the Central Government, and continues in office until three months after the Government receives the notice, or until a successor enters office, or until the term expires, whichever is earliest.
Section 417: removal
The Central Government may, after consultation with the Chief Justice of India, remove the President, Chairperson or a Member who has been adjudged insolvent, convicted of an offence involving moral turpitude in the Government's opinion, become physically or mentally incapable, acquired a financial or other interest likely to affect functions prejudicially, or so abused his position as to make continuance prejudicial to the public interest. On grounds (b) to (e), he must first be given a reasonable opportunity of being heard.
Under sub-section (2), removal for proved misbehaviour or incapacity needs an inquiry by a Supreme Court Judge nominated by the Chief Justice of India, with the charges communicated and a hearing given. Sub-section (3) allows suspension with the Chief Justice's concurrence while that reference is pending, and sub-section (4) provides for rules made after consultation with the Supreme Court.
Section 417A and section 418
Section 417A, inserted in 2017, says the qualifications, appointment, term, pay, resignation, removal and other conditions of the NCLAT Chairperson and Members appointed after a specified Finance Act, 2017 commencement are governed by section 184 of that Act. Earlier appointees continue under the Companies Act. Section 418 requires the Central Government to provide officers and employees in consultation with the two Tribunals, under the general superintendence and control of the President, Chairperson or a delegated Member, on prescribed conditions of service.
Section 418A: benches of the NCLAT
Section 418A was inserted in 2020. The Appellate Tribunal's powers are exercised by Benches constituted by the Chairperson, each with at least one Judicial Member and one Technical Member. The Benches ordinarily sit at New Delhi or other places the Central Government notifies after consulting the Chairperson. The Government may also establish Benches to hear appeals against Competition Act section 53A matters and appeals under section 61 of the Insolvency and Bankruptcy Code, 2016.
Proposed change (Corporate Laws (Amendment) Bill, 2026). Clause 95 of the Bill would insert a new sub-section (3) in section 418A. If Members of an NCLAT Bench differ on a point, the majority view would prevail. If they are equally divided, they would state the points of difference and the Chairperson would refer them to one or more other Members, and the point would be decided by the majority of all Members who have heard the case, including those who first heard it. This mirrors the rule for NCLT benches in section 419(5). It is pending and not law.
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Key takeaways
- The NCLT and NCLAT are constituted by Central Government notification.
- Each has Judicial and Technical Members under a President or Chairperson.
- The NCLAT hears appeals from the NCLT and NFRA and Competition Act matters.
- Qualifications, term and service conditions are also governed by tribunal-reform legislation, so no figures here are current law.
- Removal is only on section 417 grounds and by its procedure.
- Section 418A gives the NCLAT benches with at least one Judicial and one Technical Member.
- The 2026 Bill proposes clauses 94 and 95 for these provisions. Neither is law.
Read next
- Benches of the NCLT: section 419
- Orders of the Tribunal and rectification: section 420
- Appeal to the NCLAT: section 421
- NCLAT: appellate tribunal for company law appeals
Disclaimer: Based on the Companies Act, 2013 as amended up to 1 April 2021 (official consolidated text), read with later developments noted in the article; proposals in the Corporate Laws (Amendment) Bill, 2026 are pending and not law as on 30 September 2026. Verify current notifications and rules before acting.