Chapter XXVII - National Company Law Tribunal and Appellate Tribunal
Section 408
Section 408: constitution of National Company Law Tribunal
Section 408 is the source of the National Company Law Tribunal (NCLT). It requires the Central Government to constitute the Tribunal by notification, with a President and as many Judicial and Technical members as it considers necessary.
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This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
The Central Government shall, by notification, constitute, with effect from such date as may be specified therein, a Tribunal to be known as the National Company Law Tribunal consisting of a President and such number of Judicial and Technical members, as the Central Government may deem necessary, to be appointed by it by notification, to exercise and discharge such powers and functions as are, or may be, conferred on it by or under this Act or any other law for the time being in force.
Introduction
The Tribunal exercises the powers and functions conferred on it by or under the Companies Act, 2013 or any other law for the time being in force. Members are appointed by the Central Government by notification.
Section 408 commenced on 12 September 2013 under S.O. 2754(E). The India Code consolidated text shows no amendment, and the text matches the 2013 Gazette.
Key takeaways
Constituted by notification
The Tribunal exists from the date specified in the Central Government’s notification.
Composition
A President and such number of Judicial and Technical members as the Central Government deems necessary.
Jurisdiction from statute
Its powers come from the Companies Act, 2013 and any other law that confers functions on it.
What the section provides
The Central Government must constitute, by notification and with effect 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 deems necessary, appointed by notification.
Functions under other laws
The Tribunal exercises and discharges the powers and functions that are, or may be, conferred on it by or under the Act or any other law for the time being in force. Other statutes can therefore give the Tribunal further work without amending section 408.
Related provisions
Section 409 deals with the qualifications of the President and members, and section 410 with the Appellate Tribunal. Section 420 governs the Tribunal’s orders, section 421 appeals against them, and section 430 bars civil courts from matters the Tribunal is empowered to decide.
Practical preparation
Confirm that the relief sought is one the Tribunal is empowered to grant under the Act or another law; identify the correct bench under the applicable rules; check whether section 430 bars a civil suit on the same matter.
Practical checklist
Do
- Identify the statutory provision that gives the Tribunal power over your matter.
- Check the Tribunal’s procedural rules before filing.
Avoid
- Do not file a civil suit on a matter the Tribunal is empowered to determine; see section 430.
- Do not assume the Tribunal’s powers are limited to the Companies Act.
Illustrative example
Hypothetical: choosing the forum
A shareholder wants to challenge a share allotment that she says is oppressive. Her adviser first checks where the dispute can be heard.
Power
Oppression and mismanagement relief lies with the Tribunal under sections 241 and 242.
Forum
The Tribunal constituted under section 408 is the forum.
Civil suit
Section 430 bars a civil court from entertaining a suit on a matter the Tribunal is empowered to determine.
Outcome
- The petition is filed before the Tribunal, not a civil court.
Glossary
- Judicial member
- A member of the Tribunal appointed as a Judicial member, with qualifications under section 409.
- Technical member
- A member of the Tribunal appointed as a Technical member, with qualifications under section 409.
Frequently asked questions
Who constitutes the NCLT?
The Central Government, by notification under section 408.
Does the NCLT decide matters only under the Companies Act?
No. It exercises powers conferred on it by or under the Act or any other law for the time being in force.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026