Chapter 17 NCLT & NCLAT

Chapter 17: NCLT & NCLAT

17.1
1. ………….. means a member of the Tribunal or the Appellate Tribunal appointed as such and includes the
President or the Chairperson, as the case may be
a. Chairperson b. Judicial Member c. President d. Member

2. NCLT\NCLAT shall be constituted by the---------by notification in the Official Gazette.

a. State Government b. Central Government c. High Court d. Supreme Court

3. NCLT shall consist of a --------

a. President, Chairman, b. President, c. Chairman, Technical d. President, Technical
Member Chairman, Secretary members, Judicial Member member, Judicial Member

4. NCLAT shall consist of a --------

a. President, b. President, c. Chairman, Technical d. President, Technical
Chairman, Member Chairman, Secretary members, Judicial Member member, Judicial Member

5. What is the maximum number of Judicial & Technical members in NCLAT?

a. 3 b. 11 c. 6 d. 10

6. The President and the members of NCLT shall be appointed by the Supreme Court.
a. True b. FalseThe President and the members of NCLT shall be appointed c. Partly d. Partly
by the Central Government. Sec 408 & Sec 410 True False

7. A president of NCLT shall be a person who is or has been Judge of High Court for ----- years.
a. 5 Years b. 2 Years c. 7 years d. 1 year

8. A person shall not be qualified to be appointed as a Judicial member unless he is or has been,
a. A judge of a High b. A District judge for at c. At least 10 Years been an d. Any of the above
Court least 5 years advocate of a Court.

9. Mr. AB was appointed as a Technical Member in NCLT. He has been in practice as a Chartered
Accountant since 12 years. Is the Appointment of Mr. AB as a Technical Member in order?(He does not
possess any other qualification)
A. Yes B. No C. Don’t Know D. May be

10. Ms. Vidya has been a presiding to Tribunal under Industrial Disputes Act, 1947 for more than 5 years. Is
Ms. Vidya eligible to be a technical Member in NCLT?
a. Yes b. No c. Don’t Know d. May be

11. The President of the Tribunal shall be appointed after consultation with the------------
a. President of India b. Prime Minister of c. Home Minister of d. Chief Justice of India
India India

12. Selection Committee recommends the appointment of ---------------of Tribunal.

a. Members b. Chairman c. President d. All of the above

13.Selection Committee consists of—

a. Chief Justice of India, Senior Judge b. Secretary in Ministry c. Secretary in d. All of the

© CA Darshan D. Khare
 Chapter 17 NCLT & NCLAT

of SC or Chief justice of HC of Corporate Affairs Ministry of Law and Above

Justice
17.2

14. The President /Chairperson and Members of Tribunal/ Appellate Tribunal shall hold office for a term of
----years from the date on which he enters upon his office
A. 3 years + 3 years B. 5 Years + 5 Years C. 5 years + 3 years D. 10 Years

15. Mr. P was appointed as a President of NCLT when he was 64 years of age. During his tenure of 5 years,
he attains the age of 67 years. As per the Provisions, a president of the tribunal shall hold office for a
period of years and can be reappointed for a period of 5 years, as such until he attains 67 years. What
action is to be taken?
A. Continue till the tenure ends B. Vacate the office C. None of the above

16. Mr. Dev wants to be a member of Appellate Tribunal. His age is 48 years. Is he eligible to be appointed
as a member of Appellate Tribunal?
A. Yes B. No C. Not Applicable

17. Mr. Dev wants to be a member of Tribunal in the year 2020. His age is 49 years in 2018. Would he be
eligible for appointment as member of the Tribunal?
a. Yes b. Not Applicable c. No d. Can’t say

18. Mr. Y, President of NCLT died due to heart attack during his tenure. Thus the vacancy is created in the
office of President. The other members are Mr. U, age 59 years and Mr. V, age 62 years. Who shall act as
president of NCLT until the date on which a new President enters upon his office?
A. Mr. U B. Mr. V C. Nobody D. Chief Justice of India

19. Mr. H, President of NCLT wants to resign from office. He submitted his resignation in writing, signed
and addressed to the Central Government. Is his Resignation in order?
a. Yes b. No c. May be d. Don’t know

20. Mr. T was a President of NCLT. Due to some circumstances he resigned from the office of president of
NCLT on 1 June 2018. He still acts as president of NCLT. Another Member objected on this on 2 July 2018.
His term expires on 10 July 2018. Is his objection valid?
a. Yes b. Can’t say c. No d. Not Applicable

21. Mr. Loot, President of NCLT has been adjudged insolvent. Can the Central government after
consultation with the Chief Justice of India remove him from office of the President?
A. Yes b. No c. Don’t Know d. Not Applicable

22. The Central government after consultation with the Chief Justice of India removed the president of
NCLT, Mr. Y from office of the President without giving the reasonable opportunity of being heard on
grounds of moral turpitude. Is the removal in order?
a. Yes c. No c. Don’t Know d. May be

23. The order of removal of the President, Chairman or the member can be made by the----------
a. State Government b. Central Government c. High Court d. Adjudicating Authority

24. The Principal Bench of the Tribunal shall be at ---------

a. Mumbai b. Bengaluru c. Chennai d. New Delhi

25. How shall decision be taken if the members of a Bench differ on opinion on any point?

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Chapter 17 NCLT & NCLAT

a. Mutual b. Majority c. None of the Above

agreement
17.3
26. Tribunal passed an order on 1 August 2018. Within some days it realised that it contained mistake
apparent from the record. Tribunal wanted to rectify the order. What is the time limit to rectify the order?
a. Within 1 year from b. Within 2 years from c. Within 3 years from d. Within 4 years from the
the date of the the date of the the date of the date of the order
order order order

27. Mr. S is aggrieved by the order of NCLT. A copy of the order of tribunal was made available to Mr. S on
1 July 2018. He wants to file appeal to the Appellate Tribunal. What is the time limit to file appeal?
a. 15 Days b. 30 Days c. 45 Days d. 60 Days

28. Mr. G was found indulged in activities of money laundering. During the proceedings order was made by
the Tribunal. But he was aggrieved by the order made by Tribunal and filed appeal before the Appellate
Tribunal. Further, the order was made by the Appellate Tribunal. Again he was aggrieved by the order
made by the Appellate Tribunal. What can be the next course of action?
a. File an Appeal to b. Accept the order c. File an appeal to the d. File an appeal to the
the High Court and pay Fine Sessions Court Supreme Court

29. What is the time limit from the date of receipt of the order to file Appeal to the Supreme Court?
a. 30 Days b. 45 Days c. 15 Days d. 60 Days

30. The Appeal to the Supreme Court may be filed only on a question of --------- arising out of the order of
the Appellate Tribunal.
a. Law b. Fact c. None of the above d. Both of the above

31. Proceedings under Prevention of Money Laundering Act, 2002 was going on against Mr. D. During the
proceedings he was asked by the Authority to submit documents related to the income and bank
transactions. Along with these transactions, some other documents were also asked to be submitted. Mr.
D refused to submit the documents citing the reason that this does not come under the powers of
Tribunal. State whether Mr. D is correct or not.
a. Correct b. Incorrect c. Partially correct d. Partially incorrect.

32. Mr. Q was appointed as a Technical Member of the NCLT on 15 July, 2017 for a period of 5 years. He
will be completing 62 years on 14 June, 2022. Whether he can be re-appointed on the NCLT on completion
of his tenure in 2022?
a. Yes b. No c. May be d. Don’t Know

33. Only such proceedings relating to the winding up of companies shall be transferred to the Tribunal as
are at a stage as may be prescribed by the Central Government.
a. True b. False c. Partly True d. Partly False

34. The President of the Tribunal and the Chairperson and Judicial Members of the Appellate Tribunal shall
be Appointed after consultation with the chief justice of India.
a. True b. False c. Partly True d. Partly False

35. The President of the Tribunal shall hold office as such for a term of 5 years from the date on which he
enters upon his office but shall not be eligible for re appointed for another term of 5 years.
A True B. False

36. The President of Tribunal shall be a person who is or has been a ---------------for 5 Years

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 Chapter 17 NCLT & NCLAT

a. Judge of High Court b. District Judge c. Advocate of a Court d. Any of the Above
17.4

37. Mr. X is a Judge of a High Court for 5 years. He wants to be a Judicial Member of NCLAT. His age is 49
years. Is he eligible to be Judicial member of NCLAT?
a. Yes b. No

38. Where an order is made by the Tribunal with the consent of the parties, no party shall have a right to
prefer an appeal to the Appellate Tribunal.
a. True b. False

39. Every application presented before the Tribunal shall be disposed off by it within---------------- from the
date of such application.
a. 3 months b. 90 days c. 30 days d. 1 month

40. A person shall not be qualified for appointment as a Technical Member unless he-
a. is, or has been, in practice as b. is, or has been, in practice c. is, or has been, in d. Any of the
a Chartered Accountant for at as a Cost Accountant for at practice as a Company above
least 15 years least 15 years Secretary for at least 15
years

41. The Chairman & Judicial Member of NCLAT shall be appointed after consultation with the--------
a. President of India b. Prime Minister of c. Home Minister of d. Chief Justice of India
India India

42. Mr. X, a qualified CA has been practicing for 26 years in Investment and Accountancy and seeks to be
appointed as a Technical Member in NCLAT, can he be so appointed?
a. No, as practicing CA b. No, as experience of c. Yes, as experience of d. Yes, as experience of 15
cannot be appointed 30 years is required in 25 years is required in years is required in
as Technical Member Investment and Investment and Investment and
in NCLAT. Accountancy to be Accountancy to be Accountancy to be
appointed as a appointed as a appointed as a Technical
Technical Member of Technical Member of Member of NCLAT.
NCLAT. NCLAT.

43. Mr. X, a qualified CA has been practicing for 26 years in law and seeks to be appointed as a Technical Member
in NCLAT, can he be so appointed?
a. No, as experience of 30 years is b. Yes, as experience of 25 years is c. None of the above
required in Law to be appointed required in Law to be appointed
as a Technical Member of as a Technical Member of
NCLAT. NCLAT.

44. Which quasi-judicial forums have been replaced by NCLT?

A. Company law board b. BIFR C. Both of the above D. None

45. Appellate Authority is constituted in place of:

A. Company law board B. BIFR C. Industrial & financial Reconstruction D. Special court

46. Person shall be qualified to act as president of NCLT only when he has been
A. Member of Indian B. Practicing chartered C. Judge of high court D. Judge of supreme court for
corporate law service accountant for 15 years for 5 years 5 years

47. A person shall be qualified to act as Judicial member of the NCLT only when he is or has been
A. a Judge of HC or B.. a district judge for C. an advocate court for D. any of the above…
atleast 5 years, or atleast 10years,or

© CA Darshan D. Khare
 Chapter 17 NCLT & NCLAT

48. A person shall be qualified to act as Technical Member only when he is or has been
17.5
A. Member of Indian B. is or has been in C. is or has been a presiding D. any of the above
Corporate law practice as CA, officer of a labour court,
service or Indian CWA, CS tribunal or national tribunal
legal service constituted under Industrial
disputes act

49. Mr. B is a judge by profession. He has served high court of Aurangabad for more than 7 years and wishes to
get himself on the board of NCLT. Where is he eligible to be appointed based on his experience?
A. Qualified as Judicial B. qualified as C. Qualified as D. Qualified as Manager
member Technical Member President

50. Chairperson of NCLAT shall be person who is or has been

A. Judge of Supreme B. Judge of High Court C. ‘a’ or ‘b’ D. Judge of district court
Court

51. Judicial member of NCLAT shall be a person who is or has been

A. Judge of high B. Judicial Member of C. ‘a’ or ‘b’ D.. None
court tribunal for 5 years

52. Selection committee shall consist of the following except

A. Secretary into MCA – B. Secretary in Ministry of C. Judge of District D. Chief justice of India or his
member law & justice –member Court nominee

53. President of the Tribunal shall hold office upto….of age

A.65 years B.67 years C.62 years D.60 years

54. President and every other member shall hold office for a term of ------
A.10 years B.5 years C.15 years D.6 years

55. Member of the tribunal shall hold office uptil the age of
A.70 years B.65 years C.60 years D.75 years

56. President of the Appellate Tribunal shall hold office uptil the age of
A.62 years B.65 years C.70 years D.60 years

57. President of tribunal ,shall for disposal of any case relating to rehabilitation ,restructuring or winding up of
companies shall constitute
A. Special Bench B. Judicial Bench C. Additional Bench D. Junior bench

58. Member of the appellate tribunal shall hold office uptil

A. 65 years B.67 years C.72 years D.70 years

59. In case of disposal of case relating to rehabilitation or winding up, the CG shall constitute a…..which shall be
the head of all the benches.
A. Special Bench B. Principle Bench C. Additional Bench D. Deputy Bench

60. Tribunal can amend or rectify the order passed by it within a period of …..years
A. 5 years B. 2 years C. 1 year D.3 years

61. No act of …..in pursuance of section 10 FP shall be called in question in any court before any authority on a
ground whatsoever
A. Junior metropolitan B. Deputy metropolitan C. Additional D. Chief metropolitan
Magistrate Magistrate metropolitan Magistrate Magistrate

© CA Darshan D. Khare
 Chapter 17 NCLT & NCLAT

62. Any person aggrieved by any decision or order of Appellate Tribunal may file an appeal to supreme court
17.6 within….from the date of communication of order of Appellate Tribunal
A. 45 days B. 30days C. 15 days D. 60 days

63. Chairperson or member shall be removed when

A. He is adjudicated as B. He has convicted an C. has abused his D. all of the above cases
an Insolvent offence involving moral position
turpitude

64. Any person aggrieved by opinion of Tribunal can file case to appellate tribunal within a period of
A.30 days B.60 days C.20 days D.45 days

65. The powers of tribunal can be exercised by Judicial & Technical members u\s
A.10 FQ B.10FH C.10FI D.10FA

66. Vacancy in tribunal is dealt in section

A.10 FL B.10FH C.10FB D.10FA

67. The tribunal member for appellate tribunal shall have special knowledge & experience of not less than------YRS
A.10 B.25 C.30 D.40

68. Mr. X, a qualified CA has been practicing for 26 years in law and seeks to be appointed as a Technical Member
in NCLAT, can he be so appointed?
a. No, as practicing CA b. No, as experience of c. Yes, as experience of d. None of the above
cannot be appointed 30 years is required in 25 years is required in
as Technical Member Law to be appointed Law to be appointed
in NCLAT. as a Technical as a Technical
Member of NCLAT. Member of NCLAT.

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 Chapter 17 NCLT & NCLAT

Answer 17.7

1. B 2. B 3. D 4. C 5. B 6. B
7. A 8. D 9. B 10. A 11.D
(Hint: Minimum experience of 15 (Hint: Minimum experience of 5 yrs as
years as a CA in practice is presiding officer to Tribunal under Industrial
required to be appointed as a Disputes Act, 1947 to be appointed as a
Technical Member). Technical Member is required.)
12. A 13. D 14. B 15. B 16. B 17. A
(Hint: To be a member of NCLT, Minimum
age should be 50 years)
18. B 19. A 20. C
(Hint: As per Sec 415(1) any (Hint: U/s 416, the (Hint: In spite of the fact that the President
vacancy at the office of President, has resigned from his office he shall
chairman or president shall be Chairperson or any continue in office until 3 months have
filled by the senior most Member by notice expired from the date of receipt of his
member who shall temporarily in writing under his resignation by the Central Government. Or
reside in such office until the hand address a person duly appointed as successor enters
new president or chairman is his/her resignation upon his office or the expiry of his term of
appointed). to the CG) office, whichever is the earliest.)
21. A 22. B 23. B 24. D
(Hint: As per the proviso to Sec 417, the President, the Chairperson or
the Member shall not be removed on any of the grounds specified in
clause (b) to (e) without giving him a reasonable opportunity of being
heard).
25. B 26. B 27. C 28. D 29. D 30. A
31. B 32. A 33. A
(Hint: ‘’Requiring the discovery and production of (Hint: Mr. Q may be reappointed to
documents” is one of the powers of Tribunal and hold office as a Member of NCLT for
Appellate Tribunal. (Section 424)) the period 15 July 2022 to 14 June
2027.)
34. A 35. B 36. A 37. B 38. A
(Section 413) (Hint: A person who has not completed 50 years of (Sec 421)
age shall not be eligible for appointment as Member
of the Appellate Tribunal)
39. A 40. D 41. D 42. C 43. C
(Hint: As per Companies Amendment Act, 2017, 15 yrs of
experience in the following is required to be appointed as a
Technical Member in NCLT: Industrial Finance / Industrial
Management / Industrial Reconstruction, Investment and
Accountancy).
44. C 45. C 46. C 47. D 48. D
49. C 50. C 51. C 52. C 53. B
54. B 55. B 56. C 57. A 58. B
59. B 60. B 61. D 62. D 63. D
64. D 65. C 66. B 67. B 68. D

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