Section 407: Definitions

Companies Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
Statutory Defined Terms in this Section: (Click any term for official legal definition)

Legal Commentary & Landmark Judgments: Section 407

Section 407 provides foundational definitions for Chapter XXVII, defining 'Chairperson', 'Judicial Member', 'Member', 'President', and 'Technical Member' of the NCLT and NCLAT.

  • Judicial vs Technical Member Classification: Statutorily distinguishes between Judicial Members (possessing judicial or legal experience) and Technical Members (possessing specialized corporate, accountancy, or commercial expertise).
  • Presiding Officers Definition: Defines the 'President' as the head of the National Company Law Tribunal and the 'Chairperson' as the head of the National Company Law Appellate Tribunal.
  • Comprehensive Encompassing Definition: Clarifies that 'Member' includes both Judicial and Technical Members, ensuring parity of tenure, immunities, and statutory discipline across the tribunal benches.
Key Landmark Precedents:
  • Union of India v. R. Gandhi, President, Madras Bar Association, (2010) 11 SCC 1: The Constitution Bench established the definitive doctrine governing tribunalization in India, holding that tribunals substituting the High Court must replicate the independence, judicial caliber, and standards of the judiciary.
  • Madras Bar Association v. Union of India, (2015) 8 SCC 583: Affirmed the statutory definitions under Section 407 while striking down defects in member qualifications to protect separation of powers and judicial independence.
Courtroom Practice & Strategic Litigation Guidance:

When challenging the constitution of an NCLT Bench or recusal of a member, examine Section 407 definitions. A validly constituted Division Bench must consist of one Judicial Member and one Technical Member; an order delivered by an improperly constituted single member on substantive matters (outside Section 419 provisos) is void for lack of statutory coram.