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Case Comment Madras BAR Association II

The document summarizes the 2015 Supreme Court of India case Madras Bar Association II, which dealt with the constitutionality of the National Company Law Tribunal and National Company Law Appellate Tribunal. The case revisited issues from a previous 2010 case regarding their establishment. The 2015 case considered the validity of establishing the tribunals, qualifications for presidents/members, and the selection committee structure. The Court upheld establishing the tribunals but struck down provisions for selection that did not meet guidelines from the 2010 case. The case clarified past precedent on exceptional situations for other tribunals.

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0% found this document useful (0 votes)
66 views4 pages

Case Comment Madras BAR Association II

The document summarizes the 2015 Supreme Court of India case Madras Bar Association II, which dealt with the constitutionality of the National Company Law Tribunal and National Company Law Appellate Tribunal. The case revisited issues from a previous 2010 case regarding their establishment. The 2015 case considered the validity of establishing the tribunals, qualifications for presidents/members, and the selection committee structure. The Court upheld establishing the tribunals but struck down provisions for selection that did not meet guidelines from the 2010 case. The case clarified past precedent on exceptional situations for other tribunals.

Uploaded by

Swapnil Das
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CASE COMMENT: MADRAS BAR ASSOCIATION II

(2015)

SWAPNIL DAS
[LLB/2717/2020]

CONSTITUTIONAL LAW- III


IIND YEAR, 2ND TRIMESTER 2021-22
INTRODUCTION:
Madras Bar Association v. Union of India 1(hereinafter “Madras Bar Assn. II”) is a judgement
delivered by a five-judge bench of the Supreme Court of India. It was considered by the Court to
be a sequel to the previous round of litigation that dealt with the same subject matter- the
constitutionality of the National Company Law Tribunal (hereinafter “NCLT”) and the
National Company Law Appellate Tribunal (hereinafter “NCLAT”).

This paper shall provide a brief background as to the case of Madras Bar Assn. II, list out the
issues considered by the Court, summarize the arguments made by both the petitioners and
the respondents and the judgement delivered by the five-judge bench. The paper shall then
move on and talk briefly about the aftermath of the judgement and finally provide a brief
analysis of the judgement delivered.

CASE SUMMARY:
Facts:
In the case of Union of India v. R. Gandhi, President, Madras Bar Association 2
(hereinafter
“the 2010 judgement”), a challenge against the constitutionality of the constitution of the
NCLT and the NCLAT was set aside. However, in the judgement, the Court also noted that
certain aspects of the manner of constitution of the NCLT and the NCLAT were problematic,
and issued certain guidelines as to how to correct those problems. Thereafter, The Companies
Act, 2013 was enacted, which contained certain provisions dealing with the establishment of
the NCLT and the NCLAT 3. The Madras Bar Association brought forth a challenge against
the provisions of the Companies Act, 2013 mainly because the guidelines put forth by the
Court in the 2010 judgement were not implemented, and for some other reasons which shall
be covered later in the paper.

Issues:
The writ petition filed by the petitioners was dealing with 3 main issues-
(i) Validity of the Constitutionality of NCLT and NCLAT.4
1
Madras Bar Assn. v. Union of India, (2015) 8 SCC 583.
2
Union of India v. R. Gandhi, President, Madras Bar Association, (2010) 11 SCC 1 (India).
3
The Companies Act, 2013.
4
Supra note 1, para 9.
(ii) Prescription of qualification of the President and Members of the NCLT and the
Chairman and Members of NCLAT.5

(iii) Structure of the Selection Committee in charge of appointing the President/Members


of the NCLT and Chairman/Members of the NCLAT.6

Petitioner’s Arguments:

Respondent’s Arguments:

RULING OF THE COURT:


Justice AK Sikri’s judgement in this case seemed to toe the same line as toed in the 2010
judgement. As put forth by the petitioners, the court refused to accept the judicial precedent set
in the National Tax Tribunal case, clarifying by saying that it was an exceptional situation, and
was not applicable here. The Court ruled that the establishment of the NCLT and the NCLAT
were entirely constitutional. However, the Court did take cognizance of the fact that the
requirements laid down in the 2010 judgement were not met when it came to the selection of
President/Members of the NCLT and the Chairman/Members of the NCLAT, and struck those
provisions down.
AFTERMATH OF THE DECISION:

ANALYSIS:

5
ibid.
6
ibid.

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