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Section 417 Of Companies Act 2013: Removal Of Members (NCLT / NCLAT)

SECTION-417 (Removal of Members) under CHAPTER-XXVII (National Company Law Tribunal and Appellate Tribunal) of the Companies Act, 2013

(1) The Central Government may, after consultation with the Chief Justice of India, remove from office the President, Chairperson or any Member, who—
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such President, the Chairperson, or Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such President, the Chairperson or Member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest:
Provided that the President, the Chairperson or the Member shall not be removed on any of the grounds specified in clauses (b)to (e)without giving him a reasonable opportunity of being heard.

(2) Without prejudice to the provisions of sub-section (1), the President, the Chairperson or the Member shall not be removed from his office except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the Central Government in which such President, the Chairperson or Member had been informed of the charges against him and given a reasonable opportunity of being heard.

(3) The Central Government may, with the concurrence of the Chief Justice of India, suspend from office, the President, the Chairperson or Member in respect of whom reference has been made to the Judge of the Supreme Court under sub-section (2) until the Central Government has passed orders on receipt of the report of the Judge of the Supreme Court on such reference.

(4) The Central Government shall, after consultation with the Supreme Court, make rules to regulate the procedure for the inquiry on the ground of proved misbehaviour or incapacity referred to in sub-section (2).








Extra Notes for Readers

(1) The Companies Act, 2013 received the assent of the President on the 29th August, 2013 (Published in the Gazette of India, Extraordinary, Part II - Section 1 by Ministry of Law and Justice, Legislative Department on 30th August, 2013) - link

(2) Section 417 of the Companies Act, 2013 was notified by MCA Notification S.O. 1934(E) dated 1st June 2016 (w.e.f. 1st June 2016) - link


(3) Also refer:
  • National Company Law Tribunal Rules, 2016 (notified on 21st July 2016) link
  • National Company Law Appellate Tribunal Rules, 2016 (notified on 21st July 2016) link
Note: Please check MCA site for any further amendments to the Rules.

(4) Website links:






This page was last updated on 2nd June, 2017.

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