Section 430 of the Companies Act, 2013
Section 430 of the Companies Act, 2013 deals with the bar of jurisdiction of civil courts in matters where the Tribunal (NCLT) or Appellate Tribunal (NCLAT) is empowered to act.
Bare Text of Section 430:
"No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Tribunal or the Appellate Tribunal is empowered to determine by or under this Act or any other law for the time being in force and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or any other law for the time being in force, by the Tribunal or the Appellate Tribunal."
Key Provisions:
Jurisdiction Barred:
Civil courts cannot hear matters that fall under the purview of the NCLT or NCLAT.
No Injunctions Allowed:
Courts or other authorities cannot issue injunctions to stop actions being taken by the Tribunal or Appellate Tribunal.
Exclusive Authority:
This section reinforces that NCLT and NCLAT have exclusive jurisdiction over company law matters assigned to them under the Act.
Purpose:
To prevent parallel proceedings in civil courts and to ensure speedy resolution of company law matters through specialized forums (NCLT/NCLAT).
Judicial Interpretation:
Courts have consistently upheld that if a matter is covered under the Companies Act and falls under NCLT/NCLAT jurisdiction, civil courts have no say, thereby upholding the intent of specialization and efficiency.
RELATED Blog
0 comments