The Tribunal and the Appellate Tribunal shall have the same jurisdiction, powers and authority in respect of contempt of themselves as the High Court has and may exercise, for this purpose, the powers under the provisions of the Contempt of Courts Act, 1971, which shall have the effect subject to modifications that:—
a. the reference therein to a High Court shall be construed as including a reference to the Tribunal and the Appellate Tribunal; and
b. the reference to Advocate-General in section 15 of the said Act shall be construed as a reference to such Law Officers as the Central Government may, specify in this behalf.
Legal Commentary & Landmark Judgments: Section 425
Section 425 vests the National Company Law Tribunal and Appellate Tribunal with the same jurisdiction, powers, and authority in respect of contempt of itself as are possessed by a High Court under the Contempt of Courts Act, 1971.
Section 425 ensures that corporate litigants cannot flout NCLT interim injunctions, asset freezes, or disclosure orders with impunity. When a corporate board willfully defies an NCLT direction under Section 242 or alienates assets frozen under Section 221, the aggrieved party can initiate contempt proceedings under Section 425, exposing directors to personal imprisonment of up to six months.