Companies Act Section 407

Companies Act, Section 407: Key Definitions Related to the Tribunal and Appellate Tribunal

Section 407 of the Companies Act, 2013 lays down the foundational definitions necessary for understanding the provisions of the Chapter that deals with the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). 

These definitions help clarify the roles, designations, and hierarchical structures within the Tribunal system that adjudicates matters under corporate law.

This section ensures that whenever specific terms are used within the Chapter, they carry a clear, uniform meaning unless the context suggests otherwise.

Important Terms Defined Under Section 407

1. Chairperson

The term refers specifically to the Chairperson of the Appellate Tribunal (NCLAT).
The Chairperson holds the highest authority in the Appellate Tribunal, overseeing adjudication of appeals against decisions of the NCLT and handling administrative responsibilities at the appellate level.
2. Judicial Member

A Judicial Member is an individual appointed to serve in either:
The Tribunal (NCLT), or The Appellate Tribunal (NCLAT)
This term also includes the President of the Tribunal and the Chairperson of the Appellate Tribunal, where applicable.
Judicial Members typically possess a strong legal background, often having served as judges or having legal expertise relevant to corporate and commercial matters.
3. Member

This definition covers both categories of members:
Judicial Members and Technical Members. A Member may belong to either NCLT or NCLAT.
It also includes the President of the Tribunal and the Chairperson of the Appellate Tribunal, recognizing them as Members in addition to their leadership positions.
This broad definition ensures inclusivity of all individuals involved in the adjudicating body, irrespective of specific roles.
4. President

The President refers exclusively to the President of the National Company Law Tribunal (NCLT).
The President leads the NCLT and is responsible for the overall functioning, allocation of cases, and administrative supervision of the Tribunal.
5. Technical Member

A Technical Member is an expert appointed to the NCLT or NCLAT to provide specialized knowledge and practical insight into corporate laws, financial matters, business operations, governance issues, mergers, insolvency, restructuring, and other related fields.
They complement Judicial Members by contributing expertise beyond pure legal interpretation.

Purpose and Significance of Section 407

Clearly identifying the different authorities and officials within the Tribunal structure.
Differentiating between judicial and technical expertise in adjudication.
Establishing uniform terminology across all provisions of the Chapter.
Ensuring clarity in implementation, administration, and interpretation of Tribunal-related provisions under company law.