UOI v R. Gandhi/ Madras Bar Association v UOI, (2010) 2 Comp LJ 577 (SC).

Author’s Name: Aditi Tambi

Registration Number: 11A008

TABLE OF CONTENTS
Introduction………………………………………………………………..2
Rule of Law…………………………………………………………………4
Separation of Power……………………………………………………….6
Development of Tribunalisation in India………………………………..8
UOI v R.Gandhi……………………………………………………………....10 * Facts………………………………………………………………....10 * Issues………………………………………………………………...12 * Contentions of Petitioner………………………………………….12 * Contentions of Respondent………………………………………...13 * Provisions of Law in Question……………………………………...13 * Judgment……………………………………………………………...15
Conclusion………………………………………………………..20

INTRODUCTION
The author in the in this project will deal with the case for and against the Tribunalisation of company law in India. The following discussion culminates from the Constitutional Bench Judgment of the Supreme Court that upheld the establishment of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), in an appeal filed by the Union of India against a Madras High Court judgment. The case in discussion is Union of India v. R. Gandhi / Madras Bar Association v UOI. What was effectively held in the judgment was to uphold the legislative competence of the Parliament to create the NCLT and NCLAT.
In the present case, upon recommendations of Eradi Committee, constituted to suggest measures to avoid unnecessary delay in litigation, Parliament passed Companies (Second amendment) Act, 2002 establishing NCLT and NCLAT. The committee mentioned multiple proceedings to be the main cause for vexatious litigation and thus recommend establishing tribunals to deal with matters pertaining to common law and to transfer the jurisdiction of High Courts and other boards to these tribunals. This step of Government was challenged by Madras