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SC upholds constitutional validity of Company Tribunals

Dated:- 14-5-2015 - New Delhi, May 14 (PTI) The Supreme Court today upheld the constitutional validity of provisions of the Companies Act of 2013 relating to setting up of National Company Law Tribunal and National Company Law Appellate Tribunal but struck down provisions which permitted inclusion of civil servants of the level of Joint Secretary as technical members. A five-judge Constitution bench, headed by Chief Justice H L Dattu, quashed Section 409(3)(a) and (c) and Section 411(3) of the A .....

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secure . It also held as invalid Section 412 of the new Act which contemplates selection by a committee consisting of two Judges and three Secretaries, saying this very issue stands concluded by the 2010 judgment which is now a binding precedent. We are of the opinion that this again does not constitute any valid or legal justification having regard to the fact that this very issue stands concluded by the 2010 judgment which is now a binding precedent and, thus, binds the respondent equally. The .....

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