Section 420 of the Companies Act, 2013
Section 420 of the Companies Act, 2013
Title: Orders of Tribunal
Bare Act Summary (Simplified Language):
Pronouncement of Orders:
The National Company Law Tribunal (NCLT) shall pass an order after giving both parties a reasonable opportunity to be heard. The order must be in writing and signed by the Members of the Tribunal who heard the case.
Rectification of Mistakes:
The Tribunal has the power to amend or rectify any mistake apparent on the face of the record.
This can be done on its own or on an application made by any of the parties.
The correction must be done within 2 years from the date of the order.
Key Highlights:
NCLT must follow principles of natural justice (fair hearing).
Orders must be written and signed.
Clerical or apparent errors can be corrected, but only within 2 years.
Rectification is allowed only for errors apparent on the face of the record, not for reviewing the entire case.
Example:
If the NCLT accidentally writes the wrong date in an order or misspells a party’s name, it can correct that mistake under Section 420.
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