Companies Act, 2013
Section 413(1)—Tenure of members—Writ petition challenging the notification issued by Union Government—Seeks modification of the tenure of appointment of the members of the NCLT from three years to five years by correcting the notification of appointment—Section 413(1) of the Companies Act stipulates that the term of a member of the Tribunal shall be five years from the date on which he enters upon office—A member is eligible for re-appointment for another term of five years—Upper age limit is prescribed as 65 years by Section 413(2)(b) of the Act—Appointment of persons as members of NCLT for a period of three years is not contemplated by Section 413(1) of the Act—An administrative notification for appointment has to be consistent with the statute which governs appointments to the Tribunal—No challenge to the Rules or the provisions of Statute itself—Petitioners sought an extension of the tenure of the retiring members who are not petitioning parties to the proceedings before the Apex Court—Prayer for extension is at belated stage when the tenure of the members is nearing it’s end—Selection Committee also already directed the government to take appropriate action basis the performance report—Union Government shall be bound by the statutory provisions embodied in Section 413 of the Companies Act in making appointments to the NCLT in the future. [Constitution of India, 1950, Article 32]
[Paras 16 to 18, 21, 22, 24 & 27]