Section 430: civil court not to have jurisdiction

Introduction

The bar is tied to the Tribunal’s powers. Where the Tribunal can decide a matter, a civil suit on it is barred, whether the Tribunal’s power comes from the Companies Act or from another law.

Section 430 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

The two bars

The first limb bars civil courts from entertaining any suit or proceeding on a matter the Tribunal or the Appellate Tribunal is empowered to determine by or under the Act or any other law for the time being in force. The second limb bars any court or other authority from granting an injunction in respect of any action taken or to be taken by the Tribunal or Appellate Tribunal in pursuance of a power conferred by or under the Act or any other law.

• India Code — consolidated Companies Act, 2013, section 430
• Companies Act, 2013 as published in the Gazette of India, 30 August 2013 (NCLT copy)
• eGazette — MCA notification S.O. 1934(E), 1 June 2016 (commencement)

Applying the bar

The test is whether the Tribunal or Appellate Tribunal is empowered to determine the matter. If it is, the dispute must go to the Tribunal. Matters outside its powers are not covered by the bar.

Practical preparation

Map each relief sought to the provision that empowers the Tribunal; file Tribunal-matters before the Tribunal; for mixed disputes, take advice on which reliefs fall outside the Tribunal’s powers; do not seek a civil-court injunction against Tribunal proceedings.

Practical checklist

Glossary

Civil court

An ordinary court of civil jurisdiction, as distinct from the Tribunal and Appellate Tribunal.

Injunction

A court order restraining or requiring an act, which section 430 bars in respect of action under the Tribunal’s powers.

Frequently asked questions