Section 435 Establishment of Special Courts – Companies Act 2013

Amended and updated notes on section 435 of Companies Act 2013. Discussion on provision and rules related to establishment of Special Courts.

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 ActThe Companies Act 2013
Enacted byParliament of India
Administered byMinistry of Corporate Affairs (MCA)
Number of Chapters29
Number of Sections484 (470-43+57)
Number of Schedules7
You are reading:
Chapter No.XXVIII
Chapter NameSpecial Courts
Section No.435
Section NameEstablishment of Special Courts
Monthly Updated EditionCompany 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 CourtJurisdiction as Special Court
1Courts of Additional Sessions Judges Anticorruption, Jammu and SrinagarUnion territory of Jammu and Kashmir
2Presiding Officers of Court No’s. 37 and 58 of the City Civil and Sessions Court, Greater MumbaiWhole State of Maharashtra except Pune, Ahmednagar, Kolhapur, Solapur, Satara, Sangli, Ratnagiri and Sindhudurg districts of the State of Maharashtra
3Court 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
4Court of District Judge-1 and Additional Sessions Judge, Panaji.State of Goa
5Court of Principal District and Sessions Judge, Ahmedabad (Rural), situated at Mirzapur, AhmedabadState of Gujarat
69th Additional Sessions Judge, Gwalior Madhya PradeshState of Madhya Pradesh
7Court of Additional District and Session Judge, Port Blair, Andaman and Nicobar Islands.Union territory of Andaman and Nicobar Islands
82nd Special Court, CalcuttaState of West Bengal
9Court of Additional Sessions Judge-03, South-West District, DwarkaNational Capital Territory of Delhi
10Sessions Judge, BilaspurState of Chhattisgarh
11Court of Special Judge, (Sati Niwaran), JaipurState of Rajasthan
12Court of Sessions Judge and 2nd Additional Sessions Judge, S.A.S. NagarState of Punjab
13Court of Sessions Judge and 2nd Additional Sessions Judge, GurgaonState of Haryana
14Court of Sessions Judge and 2nd Additional Sessions Judge, ChandigarhUnion Territory of Chandigarh
15I Additional District and Sessions Court, CoimbatoreDistricts of Coimbatore, Dharmapuri, Dindigul, Erode, Krishnagiri, Namakkal, Nilgiris, Salem and Tiruppur.
16II Additional District and Sessions Court, PuducherryUnion Territory of Puducherry
17Sessions Judge, Imphal EastState of Manipur
18Court of District and Sessions Judge, ShillongState of Meghalaya
19Court of Additional District and Sessions Judge, PatnaState of Bihar
20XV Additional Court, XVI Additional Court of City Civil Court, ChennaiState of Tamil Nadu except Districts of Coimbatore, Dharmapuri, Dindigul, Erode, Krishnagiri, Namakkal, Nilgiris, Salem and Tiruppur.
21LIX Additional City Civil and Sessions Judge, Bengaluru CityState of Karnataka
22Additional District and Sessions Court- VII, ErnakulamState of Kerala
23District and Sessions Court, KavarattiUnion territory of Lakshadweep
24District and Sessions Judge, CuttackState of Odisha
25Additional District and Sessions Judge, No.1, Kamrup (M), GuwahatiState of Assam
269th Court of Additional District and Sessions Judge, Kanpur NagarState of Uttar Pradesh
27Court of District and Sessions Judge at KohimaState of Nagaland
28Court of District and Sessions Judge at AizawlState of Mizoram
29West Session Division, YupiaState of Arunachal Pradesh
30Court of District Judge-1 and Additional Sessions Judge, PunePune, Ahmednagar, Kolhapur, Solapur, Satara, Sangli, Ratnagiri and Sindhudurg districts of the State of Maharashtra.
31Court of Sub-Divisional Judicial Magistrate at RanchiState 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).

  1. 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.
  2. 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.CourtJurisdiction as Special Court
(1)(2)(3)
1Court of IV Additional District and Session Judge, DehradunState of Uttarakhand
2Principal Sessions Judge, LehUnion 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.CourtJurisdiction as Special Court
(1)(2)(3)
1Court of II Additional Chief Judicial Magistrate, DehradunState of Uttarakhand
2Sub-Judge/Special Mobile Magistrates, Jammu and SrinagarUnion territory of Jammu and Kashmir
3Chief Judicial Magistrate, LehUnion territory of Ladakh

[Notification No. S.O. 4570 (E) dated 19-12-2019]


Open Demat Account

For Investing or Trading

(Best Investing and Trading Platform in India)

Learn More