(1) Such number of or members, depositor or depositors or any class of them, as the case may be, as are indicated in sub-section (2) may, if they are of the opinion that the management or conduct of the affairs of the are being conducted in a manner prejudicial to the interests of the company or its members or depositors, file an before the on behalf of the members or depositors for seeking all or any of the following orders, namely:—
(a) to restrain the company from committing an act which is ultra vires the or of the company;
(b) to restrain the company from committing breach of any provision of the company’s memorandum or articles;
(c) to declare a resolution the memorandum or articles of the company as void if the resolution was passed by suppression of material facts or obtained by mis-statement to the members or depositors;
(d) to restrain the company and its from acting on such resolution;
(e) to restrain the company from doing an act which is contrary to the provisions of this Act or any other law for the time being in force;
(f) to restrain the company from taking action contrary to any resolution passed by the members;
(g) to claim damages or compensation or demand any other suitable action from or against—
(i) the company or its directors for any fraudulent, unlawful or wrongful act or omission or conduct or any likely act or omission or conduct on its or their part;
(ii) the auditor including audit firm of the company for any improper or misleading statement of particulars made in his audit report or for any fraudulent, unlawful or wrongful act or conduct; or
(iii) any or advisor or consultant or any other person for any incorrect or misleading statement made to the company or for any fraudulent, unlawful or wrongful act or conduct or any likely act or conduct on his part;
(h) to seek any other remedy as the Tribunal may deem fit.
(2) Where the members or depositors seek any damages or compensation or demand any other suitable action from or against an audit firm, the liability shall be of the firm as well as of each partner who was involved in making any improper or misleading statement of particulars in the audit report or who acted in a fraudulent, unlawful or wrongful manner.
(3) (i) The requisite number of members provided in sub-section (1) shall be as under:—
(a) in the case of a company having a capital, not less than one hundred members of the company or not less than such percentage of the total number of its members as may be prescribed, whichever is less, or any member or members holding not less than such percentage of the issued share capital of the company as may be prescribed, subject to the condition that the applicant or applicants has or have paid all calls and other sums due on his or their shares;
(b) in the case of a company not having a share capital, not less than one-fifth of the total number of its members.
(ii) The requisite number of depositors provided in sub-section (1) shall not be less than one hundred depositors or not less than such percentage of the total number of depositors as may be prescribed, whichever is less, or any depositor or depositors to whom the company owes such percentage of total deposits of the company as may be prescribed.
under sub-section (1), the Tribunal shall take into account, in particular—
(a) whether the member or depositor is acting in good faith in making the application for seeking an order;
(b) any evidence before it as to the involvement of any person other than directors or of the company on any of the matters provided in clauses (a) to (f) of subsection(1);
(c) whether the cause of action is one which the member or depositor could pursue in his own right rather than through an order under this section;
(d) any evidence before it as to the views of the members or depositors of the company who have no personal interest, direct or indirect, in the matter being proceeded under this section;
(e) where the cause of action is an act or omission that is yet to occur, whether the act or omission could be, and in the circumstances would be likely to be—
(i) authorised by the company before it occurs; or
(ii) ratified by the company after it occurs;
(f) where the cause of action is an act or omission that has already occurred, whether the act or omission could be, and in the circumstances would be likely to be, ratified by the company.
(5) If an filed under sub-section (1) is admitted, then the Tribunal shall have regard to the following, namely:—
(a) public notice shall be served on admission of the to all the members or depositors of the class in such manner as may be prescribed;
(b) all similar applications prevalent in any jurisdiction should be consolidated into a single application and the class members or depositors should be allowed to choose the lead applicant and in the event the members or depositors of the class are unable to come to a consensus, the Tribunal shall have the power to appoint a lead applicant, who shall be in charge of the proceedings from the applicant’s side;
(c) two class action applications for the same cause of action shall not be allowed;
(d) the cost or expenses connected with the application for class action shall be defrayed by the company or any other person responsible for any oppressive act.
(6) Any order passed by the Tribunal shall be binding on the company and all its members, depositors and auditor including audit firm or expert or consultant or advisor or any other person associated with the company.
(7) Any company which fails to comply with an order passed by the Tribunal under this section shall be punishable with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees.
(8) Where any application filed before the Tribunal is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, reject the application and make an order that the applicant shall pay to the opposite party such cost, not exceeding one lakh rupees, as may be specified in the order.
(9) Nothing contained in this section shall apply to a .
(10) Subject to the compliance of this section, an application may be filed or any other action may be taken under this section by any person, group of persons or any association of persons representing the persons affected by any act or omission, specified in sub-section (1).
(i) the subscriber to the memorandum of the company who shall be deemed to have agreed to become member of the company, and on its registration, shall be entered as member in its register of members;
(ii) every other person who agrees in writing to become a member of the company and whose name is entered in the register of members of the company;
(iii) every person holding shares of the company and whose name is entered as a beneficial owner in the records of a depository
27.3.84 National Company Law Tribunal Rules, 2016
84. Right to apply under section 245.-
(1) An application under sub-section (1) of section 245, read with sub-section (3) of section 245 of the Act. shall be filled in .
(2) A copy of every application under sub-rule (1) shall be served on the company, other respondents and all such persons as the Tribunal may direct.
In case of a company having a share capital, the requisite number of member or members to file an application under sub-section (1) of section 245 shall be –
(i) (a) at least five per cent. of the total number of members of the company; or
(b) one hundred members of the company,
whichever is less; or
(ii) (a) member or members holding not less than five per cent. of the issued share capital of the company, in case of an unlisted company;
(b) member or members holding not less than two per cent. of the issued share capital of the company, in case of a listed company.
The requisite number of depositor or depositors to file an application under sub-section (1) of section 245 shall be –
(i) (a) at least five per cent. of the total number of depositors of the company; or
(b) one hundred depositors of the company,
whichever is less; or;
(ii) depositor or depositors to whom the company owes five per cent. of total deposits of the company.
27.3.85 National Company Law Tribunal Rules, 2016
85. Conducting a class action suit.-
(1) Without prejudice to the generality of the provisions of sub-section (4) of section 245 of the Act, the Tribunal may, while considering the admissibility of an application under the said section, in addition to the grounds specified therein, take into account the following: (a) whether the class has so many members that joining them individually would be impractical, making a class action desirable;
(b) whether there are questions of law or fact common to the class;
(c) whether the claims or defences of the representative parties are typical of the claims or defences of the class;
(d) whether the representative parties will fairly and adequately protect the interests of the class.
(2) For the purposes of clause (c) of sub-section (4) of section 245, while considering the desirability of an individual or separate action as opposed to a class action, the Tribunal may take into account, in particular, whether admitting separate actions by member or members or depositor or depositors would create a risk of:-
(a) inconsistent or varying adjudications in such separate actions; or
(b) adjudications that, as a practical matter, would be dispositive of the interests of the other members:
(c) adjudications which would substantially impair or impede the ability of other members of the class to protect their interests.
27.3.86 National Company Law Tribunal Rules, 2016
86. Rule of opt-out.-
(1) A member of a class action under section 245 of the Act is entitled to opt-out of the proceedings at any time after the institution of the class action, with the permission of the Tribunal, as per .
(2) For the purposes of this rule, a class member who receives a notice under clause (a) of sub section (5) of section 245 of the Act shall be deemed to be the member of a class, unless he expressly opts out of the proceedings, as per the requirements of the notice issued by the Tribunal in accordance with rule 38.
(3) A class member opting out shall not be precluded from pursuing a claim against the company on an individual basis under any other law, where a remedy may be available, subject to any conditions imposed by the Tribunal.
27.3.87 National Company Law Tribunal Rules, 2016
87. Publication of notice.-
(1) For the purposes of clause (a) of sub section (5) of section 245 of the Act, on the admission of an application filed under sub-section ( 1) of section 245 of the Act, a public notice shall be issued by the Tribunal as per to all the members of the class by publishing the same within seven days of admission of the Application by the Tribunal at least once in a vernacular newspaper in the principal vernacular language of the State in which the registered office of the company is situated and at least once in English in an English newspaper that is in circulation in that State; requiring the company to place the public notice on the website of such company, if any, in addition to publication of such public notice in newspaper under sub-clause (a):
Provided that such notice shall also be placed on the websites of the Tribunal and the Ministry of Corporate Affairs, the concerned Registrar of Companies and in respect of a listed company on the website of the concerned stock exchange where the company has any of its securities listed, until the application is disposed of by the Tribunal.
(2) The date of issue of the newspaper in which such notice appears shall be considered as the date of serving the public notice to all the members of the class.
(3) The public notice shall, inter alia, contain the following-
(a) name of the lead applicant;
(b) brief particulars of the grounds of application;
(c) relief sought by such application;
(d) statement to the effect that application has been made by the requisite number of members/ depositors;
(e) statement to the effect that the application has been admitted by the Tribunal after considering the matters stated under sub-section (4) of section 245 and these rules and it is satisfied that the application may be admitted;
(f) date and time of the hearing of the said application;
(g) time within which any representation may be filed with the Tribunal on the application;
(h) the details of the admission of the application and the date by which the form of opt out has to be completed and sent as per and shall be accompanied with such documents as are mentioned in , and such other particulars as the Tribunal thinks fit.
(a) The cost or expenses connected with the publication of the public notice under this rule shall be borne by the applicant and shall be defrayed by the company or any other person responsible for any oppressive act in case order is passed in favour of the applicant.
Annexure B
| S.No. | Section of the Act | Nature of Petition | Enclosures to the Petition |
| 1. | Sec. 2 (41) | Application for change in financial year | 1.Copy of the memorandum and articles of association. 2. Copy of balance sheet of companies. 3. Affidavit verifying the petition. 4. Bank draft evidencing payment of application fee. 5. Memorandum of appearance with copy of the Board Resolution or the executed Vakalatnama, as the case may be. |
| 2. | Sec. 7 (7) | Application to Tribunal where company has been incorporated by furnishing false or incorrect info or by any fraudulent action. | 1. Copy of the memorandum and articles of association. 2. Document in proof of false or incorrect information or fraudulent action. 3. Affidavit verifying the petition. 4. Bank draft evidencing payment of application fee. 5. Memorandum of appearance with copy of the Board Resolution or the executed Vakalatnama, as the case may be. |
| 3. | Sec. 14 (1) | Conversion of public company into a private company. | 1.Copy of the memorandum and articles of association. 2. Copy of the documents showing that the company ceased to become a public company. 3. Affidavit verifying the petition. 4. Bank draft evidencing payment of application fee. 5. Memorandum of appearance with copy of the Board Resolution or the executed Vakalatnama, as the case may be. |
| 4. | Sec. 55 (3) | Application for issue further redeemable preference shares. | 1. Copy of the memorandum and articles of association. 2. Documents showing the terms of issue of the existing preference shares. 3. Copy of the Board Resolution and resolution of general meeting for issue of further redeemable preference shares. 4. Copy of the latest audited balance sheet with the profit and loss account of the company with auditor’s report and director’s report. 5. Affidavit verifying the petition. 6. Bank draft evidencing payment of application fee. 7. Memorandum of appearance with copy of the Board Resolution or the executed Vakalatnama, as the case may be. |
| 5. | Sec. 58 (3) or 59 | Appeal against refusal of registration of shares; or Appeal for rectification of register of member. | Where the company is the petitioner. 1. Copy of the memorandum and articles of association 2. Latest audited balance-sheet and profit and loss account, auditor’s report and director’s report. 3. Authenticated copy of the extract of the Register of Members. 4. Copy of the resolution of the Board or Committee of Directors (where applicable) 5. Any other relevant documents. 6. Affidavit verifying the petition. 7. Bank draft evidencing payment of application fee. 8. Memorandum of appearance with copy of the Board Resolution or the executed Vakalatnama, as the case may be. 9. Two extra copies of the petition. Where the petition is made by any other person. 1. Documentary evidence in support of the statements made in the petition including the copy of the letter written by the petitioner to the company for purpose of registering the transfer of, or the transmission of the right to, any share, or interest in, or debentures as also a copy of the letter of refusal of the company. 2. Copies of the documents returned by the company. 3. Any other relevant document. 4. Affidavit verifying the petition. 5. Bank draft evidencing payment of application fee. 6. Memorandum of appearance with copy of the Board’s Resolution or the executed Vakalatnama, as the case may be. 7. Two extra copies of the petition. |
| 6. | Sec. 61 (1) | Application to Tribunal for consolidation and division of share capital. | 1. Copies of memorandum and articles of association; 2. Copies of audited balance sheets for past 3 years; 3. Resolution for allowing such consolidation or division and providing justification for the same; 4. Documents in proof of new capital structure and class of shares being consolidated or divided; 5. Affidavit verifying the petition. 6. Bank draft evidencing payment of application fee. 7. Memorandum of appearance with copy of the Board’s Resolution or the executed Vakalatnama, as the case may be. 8. Two extra copies of the application 9. Any other relevant documents. |
| 7. | Sec. 73 (4) | Application by repayment of deposit or interest. | 1. Copy of the deposit receipt 2. Copy of the correspondence exchanged with the company. 3. Bank draft evidencing payment of application fee. 4. Any other relevant document. |
| 8. | Sec. 74 (2) | Application to allow further time as considered reasonable to the company to repay deposits. | 1. Names and addresses of the officers of the company. 2. Full details of 3. Reasons for nonpayment or late payment. 4. Annual Reports for the last three years. 5. Projection and cash flow statement for the next three financial years duly certified by Statutory Auditors of the company. 6. Any other relevant document |
| 9. | Sec. 97 (1) | Application for calling of Annual General meeting. | 1. Affidavit verifying the petition. 2. Bank draft evidencing payment of application fee. 3. Any other relevant document. |
| 10. | Sec. 98 (1) | Application for calling of general meeting of company other than annual general meeting | 1. Documentary evidence in proof of status of the applicant. 2. Affidavit verifying the petition. 3. Bank draft evidencing payment of application fee. 4. Memorandum of appearance with copy of the Board’s Resolution or the executed Vakalatnama, as the case may be. 5. Any other relevant document |
| 11. | Sec. 119 (4) | Petition to pass an order directing immediate inspection of minutes books or directing a copy thereof be sent forthwith to person requiring it. | 1. Documentary evidence, if any, showing the refusal of the company to give inspection to the petitioner. 2. Affidavit verifying the petition. 3. Bank draftevidencing payment of application fee. 4. Memorandum of appearance with copy of the Board’s Resolution or the executed Vakalatnama, as the case may be. 5. Any other relevant document. |
| 12. | Sec. 131 (1) | Application by company for voluntary revision of financial statement on Board's report. | 1. Audited Financial statements of relevant period; 2. Copies of memorandum and articles of association. 3. The details of the Managing Director, Chief Financial Officer, directors, Company Secretary and officer of the company responsible for making and maintaining such books of accounts and financial statement. 3. Where such accounts are audited, documents in proof of the name and contact details of the auditor or any former auditor who audited such accounts. 4. Copy of the Board resolution passed by the Board of Directors. 5. Affidavit verifying the petition. 6. Bank draft evidencing payment of application fee. 7. Memorandum of appearance with copy of the Board’s Resolution or the executed Vakalatnama, as the case may be. 8. Any other relevant document. |
| 12. A (Inserted vide NCLT Amendment Rules,2020 dated 03.02.2020) | Sec 230 (12) | Application in cases of takeover offer of companies which are not listed. | 1. Affidavit verifying the petition 2. Memorandum of appearance with copy of the Board's Resolution or the executed vakalatnama, as the case may be. 3. Documents in support of the grievance against the takeover. 4. Any other relevant document. |
| 13. (Inserted vide NCLT Amendment Rules,2016) | - | Wherever no document is prescribed to be attached with the application or petition, documents as mentioned in next column may be attached, as applicable. | 1. Document and/or other evidence in support of the statement made in the application or appeal or petition, as are reasonably open to the petitioner(s); 2. Documentary evidence in proof of the eligibility and status of the petitioner(s) with the voting power held by each of them, wherever applicable; 3. Where the petition is presented on behalf of members, the letter of consent given by them, if applicable; 4. Statement of particulars, showing names, address, number of shares held, and whether all calls and other monies due on shares have been paid in respect of members who have given consent to the petition being presented on their behalf; 5. Where the petition is presented by a member or members authorised by the Central Government, the order of the Central Government authorising the officer(s) or member or members to present the petition shall be similarly annexed to the petition; 6. Affidavit verifying the petition; 7. Evidence regarding payment of fee; 8. Memorandum of appearance with copy of the Board Resolution or the vakalatnama, as the case may be; 9. Three copies of the petition; and 10. Any other documents in support of the case. |
Enforcement Notification S.O. 1934(E) dated 01/06/2016
National Company Law Tribunal (Amendment) Rules, 2016 [G.S.R 1159(E)] dated 20/12/2016
Form NCLT 1-Original Application / Reply / Rejoinder / Interlocutory Application or filing of additional documents under directions of the Bench
Form NCLT 13- Public Notice of Petition under section 245