Amended and updated notes on section 435 of the Companies Act 2013 as amended by the Companies (Amendment) Act, 2020 and Company Rules made there under. Detail discussion on provisions and rules related to Establishment of Special Courts.
Chapter XXVIII (Sections 435 to 446) of the Companies Act 2013 (CA 2013) deals with the provisions related to special courts. Section 435 of CA 2013 provides for Establishment of Special Courts.
Recently, we have discussed in detail section 434 (Transfer of certain pending proceedings) of CA 2013. Today, we learn the provisions of section 435 of the Companies Act 2013. The amended provision of section 435 is effective for the financial year 2020-21 onwards.
In this article, you will learn detail of the provisions of section 435 of the Companies Act 2013 Bare Act read with the relevant Company Rules 2022 as provided by Ministry of Corporate Affairs (MCA), Government of India.
The provisions of section 435 are effective from 18th May, 2016. You may refer Notification No. S.O. 1795(E) dated 18-05-2016 and S.O. 2099(E) dated 05-05-2022. In this article, you will learn detail of the provisions of section 435 the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXVIII |
| Chapter Name | Special Courts |
| Section No. | 435 |
| Section Name | Establishment of Special Courts |
| Monthly Updated Edition | Company Law PDF |
Section 435: Establishment of Special Courts
Section 435 was enforced w.e.f. 18th May, 2016 vide Notification No. S.O. 1795(E) dated 18.05.2016 and thereafter it was substituted w.e.f. 07.05.2018 by the Companies (Amendment) Act, 2017 and the latest amendment is effective from 5th May, 2022 vide Notification No. S.O. 2099(E) dated 05.05.2022.
Section 435(1) of Companies Act
The Central Government may, for the purpose of providing speedy trial of offences under this Act, except under section 452, by notification, establish or designate as many Special Courts as may be necessary.
[Sub-section(1) of section 435 has been amended w.e.f. 22.01.2021 by the Companies (Amendment) Act, 2020 vide MCA Notification No. S.O. 325(E) dated 22.01.2021]
Section 435(2) of Companies Act
A Special Court shall consist of—
- (a) a single judge holding office as Session Judge or Additional Session Judge, in case of offences punishable under this Act with imprisonment of two years or more; and
- (b) a Metropolitan Magistrate or a Judicial Magistrate of the First Class, in the case of other offences, who shall be appointed by the Central Government with the concurrence of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working
CG designates Special Courts:
Notification No. S.O. 2099(E) dated 05-05-2022: In exercise of the powers conferred by section 435 of the Companies Act, 2013 (18 of 2013), the Central Government, with the concurrence of the Chief Justice of the High Court of Jharkhand, hereby designates the Court of Additional Judicial Commissioner, Ranchi in the State of Jharkhand as Special Court for the purposes of providing speedy trial of offences punishable with imprisonment of two years or more as per clause (a) of sub-section (2) of section 435 of the said Act.
Notification No. S.O. 1796 (E) dated 18-05-2016: In exercise of the powers conferred by section 435(1), the Central Government hereby, after obtaining the concurrence of the respective Chief Justices of the High Courts, designates the following Courts mentioned in the Table below as Special Courts for the purposes of trial of offences punishable under the Companies Act, 2013 with imprisonment of two years or more in terms of section 435 of the Companies Act, 2013, namely: –
TABLE
| Sl. No. | Existing Court | Jurisdiction as Special Court |
|---|---|---|
| 1 | Courts of Additional Sessions Judges Anticorruption, Jammu and Srinagar | Union territory of Jammu and Kashmir |
| 2 | Presiding Officers of Court No’s. 37 and 58 of the City Civil and Sessions Court, Greater Mumbai | Whole State of Maharashtra except Pune, Ahmednagar, Kolhapur, Solapur, Satara, Sangli, Ratnagiri and Sindhudurg districts of the State of Maharashtra |
| 3 | Court of Principal District and Sessions Judge, Union territory of Dadra and Nagar Haveli at Silvassa. | Union Territories of Dadra and Nagar Haveli and Daman and Diu |
| 4 | Court of District Judge-1 and Additional Sessions Judge, Panaji. | State of Goa |
| 5 | Court of Principal District and Sessions Judge, Ahmedabad (Rural), situated at Mirzapur, Ahmedabad | State of Gujarat |
| 6 | 9th Additional Sessions Judge, Gwalior Madhya Pradesh | State of Madhya Pradesh |
| 7 | Court of Additional District and Session Judge, Port Blair, Andaman and Nicobar Islands. | Union territory of Andaman and Nicobar Islands |
| 8 | 2nd Special Court, Calcutta | State of West Bengal |
| 9 | Court of Additional Sessions Judge-03, South-West District, Dwarka | National Capital Territory of Delhi |
| 10 | Sessions Judge, Bilaspur | State of Chhattisgarh |
| 11 | Court of Special Judge, (Sati Niwaran), Jaipur | State of Rajasthan |
| 12 | Court of Sessions Judge and 2nd Additional Sessions Judge, S.A.S. Nagar | State of Punjab |
| 13 | Court of Sessions Judge and 2nd Additional Sessions Judge, Gurgaon | State of Haryana |
| 14 | Court of Sessions Judge and 2nd Additional Sessions Judge, Chandigarh | Union Territory of Chandigarh |
| 15 | I Additional District and Sessions Court, Coimbatore | Districts of Coimbatore, Dharmapuri, Dindigul, Erode, Krishnagiri, Namakkal, Nilgiris, Salem and Tiruppur. |
| 16 | II Additional District and Sessions Court, Puducherry | Union Territory of Puducherry |
| 17 | Sessions Judge, Imphal East | State of Manipur |
| 18 | Court of District and Sessions Judge, Shillong | State of Meghalaya |
| 19 | Court of Additional District and Sessions Judge, Patna | State of Bihar |
| 20 | XV Additional Court, XVI Additional Court of City Civil Court, Chennai | State of Tamil Nadu except Districts of Coimbatore, Dharmapuri, Dindigul, Erode, Krishnagiri, Namakkal, Nilgiris, Salem and Tiruppur. |
| 21 | LIX Additional City Civil and Sessions Judge, Bengaluru City | State of Karnataka |
| 22 | Additional District and Sessions Court- VII, Ernakulam | State of Kerala |
| 23 | District and Sessions Court, Kavaratti | Union territory of Lakshadweep |
| 24 | District and Sessions Judge, Cuttack | State of Odisha |
| 25 | Additional District and Sessions Judge, No.1, Kamrup (M), Guwahati | State of Assam |
| 26 | 9th Court of Additional District and Sessions Judge, Kanpur Nagar | State of Uttar Pradesh |
| 27 | Court of District and Sessions Judge at Kohima | State of Nagaland |
| 28 | Court of District and Sessions Judge at Aizawl | State of Mizoram |
| 29 | West Session Division, Yupia | State of Arunachal Pradesh |
| 30 | Court of District Judge-1 and Additional Sessions Judge, Pune | Pune, Ahmednagar, Kolhapur, Solapur, Satara, Sangli, Ratnagiri and Sindhudurg districts of the State of Maharashtra. |
| 31 | Court of Sub-Divisional Judicial Magistrate at Ranchi | State of Jharkhand |
The aforesaid Courts mentioned in column number (2) shall exercise the jurisdiction as Special Courts in respect of jurisdiction mentioned in column number (3).
- A Special Court shall consist of a single judge who shall be appointed by the Central Government with the concurrence of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working.
- A person shall not be qualified for appointment as a judge of a Special Court unless he is, immediately before such appointment, holding office of a Sessions Judge or an Additional Sessions Judge.
[Notification No. S.O. 1796 (E) dated 18-05-2016, and last amended by Notification No. S.O. 3403(E) dated 19-08-2021]
Notification No. S.O. 4570 (E) dated 19-12-2019: In exercise of the powers conferred by section 435 of the Companies Act, 2013 (18 of 2013) (hereinafter referred to as the said Act), the Central Government, with the concurrence of the Chief Justices of the High Court of Uttarakhand, Nainital and High Court of Jammu and Kashmir, hereby designates the following Courts mentioned in column (2) of the Tables below as Special Courts, namely:-
(a) for the purpose of providing speedy trial of offences punishable with imprisonment of two years or more as per clause (a) of sub-section (2) of section 435 of the said Act, namely:-
Table 1
| Sl. No. | Court | Jurisdiction as Special Court |
|---|---|---|
| (1) | (2) | (3) |
| 1 | Court of IV Additional District and Session Judge, Dehradun | State of Uttarakhand |
| 2 | Principal Sessions Judge, Leh | Union territory of Ladakh |
(b) for the purpose of providing speedy trial of other offences as mentioned in clause (b) of sub-section (2) of section 435 of the said Act, namely:-
Table 2
| Sl. No. | Court | Jurisdiction as Special Court |
|---|---|---|
| (1) | (2) | (3) |
| 1 | Court of II Additional Chief Judicial Magistrate, Dehradun | State of Uttarakhand |
| 2 | Sub-Judge/Special Mobile Magistrates, Jammu and Srinagar | Union territory of Jammu and Kashmir |
| 3 | Chief Judicial Magistrate, Leh | Union territory of Ladakh |
[Notification No. S.O. 4570 (E) dated 19-12-2019]