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Section 431: Vacancy in Tribunal or Appellate Tribunal not to invalidate acts or proceedings

Companies Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
Section 430 All 470 Sections of Companies Act Section 432
Statutory Defined Terms in this Section: (Click any term for official legal definition)
Company Sec 2(20) Director Sec 2(34) Tribunal Sec 2(90)

Legal Commentary & Landmark Judgments: Section 431

Section 431 enacts a comprehensive statutory bar excluding the jurisdiction of civil courts over any matter that the NCLT or NCLAT is empowered to determine, prohibiting the grant of injunctions against tribunal actions.

  • Total Exclusion of Civil Court Jurisdiction: Bars civil courts from entertaining any suit or proceeding concerning matters within the statutory competence of the NCLT or NCLAT.
  • Statutory Prohibition Against Injunctions: Strictly prohibits any court or other authority from granting an injunction restraining any action taken or proposed to be taken by the Tribunal or Appellate Tribunal under the Act.
  • Comprehensive Remedy within Specialized Forum: Requires all shareholder, director, capital reduction, merger, and winding-up disputes to be adjudicated exclusively within the specialized tribunal framework.
Key Landmark Precedents:
  • Shashi Prakash Khemka v. NEPC Micon Ltd., (2019) 18 SCC 345: The Supreme Court held that Section 431 read with Section 59 creates a complete bar on civil court jurisdiction regarding rectification of share registers, confirming that NCLT has exclusive plenary jurisdiction.
  • SAS Hospitality Pvt. Ltd. v. Surya Constructions Pvt. Ltd., 2018 SCC OnLine Del 11909: The Delhi High Court held that disputes concerning illegal allotment of shares and mismanagement fall squarely within NCLT jurisdiction, rejecting civil suits under Order VII Rule 11 of the CPC.
  • Dhulabhai v. State of M.P., AIR 1969 SC 78: Laid down the foundational principles for exclusion of civil court jurisdiction where a specialized tribunal is created with complete remedial machinery.
Courtroom Practice & Strategic Litigation Guidance:

When defending against a civil suit involving corporate shareholding, director disqualification, or management disputes, immediately file an application under Order VII Rule 11(d) of CPC citing Section 431 and Shashi Prakash Khemka to secure rejection of the plaint for lack of subject-matter jurisdiction.

Section 430 All 470 Sections of Companies Act Section 432