Chapter XXVII - National Company Law Tribunal and Appellate Tribunal
Section 420
Section 420: orders of Tribunal
Section 420 covers how the Tribunal passes orders. It must give the parties a reasonable opportunity of being heard. It may amend an order within two years to rectify a mistake apparent from the record, and it must send copies of its orders to the parties.
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Need advice on Section 420?
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
(1) The Tribunal may, after giving the parties to any proceeding before it, a reasonable opportunity of being heard, pass such orders thereon as it thinks fit. (2) The Tribunal may, at any time within two years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it, and shall make such amendment, if the mistake is brought to its notice by the parties: Provided that no such amendment shall be made in respect of any order against which an appeal has been preferred under this Act. (3) The Tribunal shall send a copy of every order passed under this section to all the parties concerned.
Introduction
The rectification power cannot be used for an order against which an appeal has been preferred under the Act.
Section 420 commenced on 1 June 2016 under S.O. 1934(E). The India Code consolidated text shows no amendment, and the text matches the 2013 Gazette.
Key takeaways
Hearing first
Orders follow a reasonable opportunity of being heard for the parties.
Two-year rectification window
Mistakes apparent from the record can be corrected within two years from the date of the order.
Not after appeal
No amendment may be made to an order against which an appeal has been preferred.
Passing orders
Under sub-section (1), the Tribunal may pass such orders as it thinks fit after giving the parties to the proceeding a reasonable opportunity of being heard.
Rectifying mistakes
Under sub-section (2), the Tribunal may, at any time within two years from the date of the order, amend it to rectify a mistake apparent from the record. If the parties bring the mistake to its notice, it must make the amendment. The power does not extend to an order against which an appeal has been preferred under the Act. The section speaks of a mistake apparent from the record; it does not provide for a fresh hearing on the merits.
Copies of orders
Under sub-section (3), the Tribunal must send a copy of every order passed under the section to all the parties concerned. The appeal period under section 421 runs from the date on which a copy of the order is made available to the person aggrieved.
Practical preparation
Read every order as soon as it is received; note the date the copy was made available, for the section 421 appeal period; if there is an apparent error, apply for rectification well within two years; decide early whether to rectify or appeal, since an appeal ends the rectification route.
Practical checklist
Do
- Point out a clerical or arithmetical error promptly under sub-section (2).
- Record the date the copy of the order was made available to you.
Avoid
- Do not use rectification to re-argue the merits.
- Do not file an appeal and then seek rectification of the same order.
Illustrative example
Hypothetical: a wrong figure in an order
A Tribunal order approving a capital reduction records the reduced capital with a typing error that conflicts with the figure in the petition.
Notice
The company brings the mistake to the Tribunal’s notice soon after the order.
Duty
Because a party has pointed out a mistake apparent from the record, the Tribunal must amend the order.
Copies
The amended order is sent to all the parties concerned.
Outcome
- No appeal is needed for a mistake apparent from the record raised within two years.
Glossary
- Mistake apparent from the record
- An error evident on the face of the record of the proceeding, which section 420(2) allows the Tribunal to correct.
- Party
- A person who is a party to the proceeding before the Tribunal.
Frequently asked questions
How long does the Tribunal have to correct an error in its order?
Two years from the date of the order, if the mistake is apparent from the record.
Can an order be rectified after an appeal is filed?
No. The proviso bars amendment of an order against which an appeal has been preferred under the Act.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026