Section 421 of CA 2013 : Section 421: Appeal From Orders Of Tribunal

Explanation using Example

Imagine a scenario where a company, XYZ Private Limited, is aggrieved by a decision of the National Company Law Tribunal (NCLT) which has ordered the company to pay a substantial fine for non-compliance with certain provisions of the Companies Act, 2013. The directors of XYZ Private Limited believe that the NCLT has misinterpreted the law and that the fine is unjust.

Under Section 421(1) of the Companies Act, 2013, XYZ Private Limited has the right to file an appeal against the NCLT's order to the National Company Law Appellate Tribunal (NCLAT). However, as per Section 421(2), if XYZ had agreed to the order in a conciliatory manner, they would not be able to appeal.

According to Section 421(3), the company must file its appeal within 45 days of receiving the order from the NCLT. If they miss this deadline, they can still file the appeal within an additional 45 days, provided they can show sufficient cause for the delay.

Once the appeal is filed, as per Section 421(4), the NCLAT will hear the case and make a decision that could confirm, modify, or overturn the NCLT's original order. Finally, Section 421(5) ensures that both the NCLT and the company receive a copy of the NCLAT's decision.