Companies Act Section 415

Companies Act, Section 415: Acting President and Acting Chairperson of NCLT and NCLAT

Section 415 of the Companies Act, 2013 ensures continuity in the functioning of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) during times when the head of the Tribunal or Appellate Tribunal is temporarily unavailable or when there is a vacancy in the office. 

Since these bodies handle urgent and important corporate matters, uninterrupted leadership is essential to prevent delays, maintain order, and ensure operational stability. This section addresses two situations:

When the office of the President or Chairperson becomes vacant, or when the President or Chairperson cannot perform duties temporarily.

1.  Filling a Temporary Vacancy in the Office of President or Chairperson

If the office of the President of NCLT or the Chairperson of NCLAT becomes vacant due to:

Death, Resignation, Retirement, Removal, or any other reason resulting in vacancy.

Then, the senior-most Member of the respective Tribunal shall automatically take charge and act as the President or Chairperson. They will continue to discharge duties only until the newly appointed President or Chairperson, selected according to the Act’s appointment provisions, formally assumes office.

This ensures that administrative authority and the judicial process do not stop simply because a leadership position becomes vacant.

2. Temporary Absence or Inability to Function

Sub-section (2) deals with circumstances where the head of the Tribunal is unable to perform duties due to:

Absence from headquarters, Illness or medical incapacity, Official leave, or any temporary situation preventing duties.

In such cases, the senior-most Member will temporarily discharge the responsibilities of the President or Chairperson until the regular head returns and resumes duties.

This prevents disruption of hearings, case management, and administrative decisions.

Purpose and Importance of Section 415

Uninterrupted functioning of NCLT and NCLAT despite leadership interruptions. Smooth transition in case of leadership change.

Timely disposal of cases, avoiding any backlog or procedural delays. Legal certainty and administrative stability even during emergencies.

Ensuring that tribunals remain fully operational and accessible to companies, creditors, investors, and stakeholders at all times.

By providing a clear chain of temporary authority, the section ensures that corporate governance and adjudication continue without any power vacuum or organizational confusion.