Whether provisions of CPC regarding amendment of pleadings apply to NCLT proceedings?

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Shubham Budhiraja[1]

 

The Ministry of Corporate affairs directed the SFIO to conduct investigation into affairs of Company-A & its subsidiaries. Basis the investigation, the Union of India filed petition under section 241-242 alleging oppression mismanagement. The NCLT allowed UOI’s application to amend the petition which was allowed. Some parties objected to the amendment for reason that it is beyond the scope of what was allowed by NCLT. The NCLT rejected the objection. Aggrieved by the same, appeal filed before the NCLAT. The Hon’ble NCLAT held as under[2]:

 

1.    Rule 155 of the NCLT Rules, 2016 which contains general power of amendment. The above rule clearly empowers the Tribunal to permit to amend necessary amendment for the purpose of determining the real question or issue raised in the proceeding. Section 424 of the Companies Act, 2013 deals with procedure before Tribunal and Appellate Tribunal

 

2.    The above provision makes it clear that the NCLT is not bound by the procedure laid down in the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice. Even though provisions of the Code of Civil Procedure are not strictly applicable, however, the principles contained therein are always the guiding factor for the procedure for proceeding before the Tribunal.

 

3.    The Statutory provision of Order VI, Rule 17 of the Civil Procedure Code, 1908 are not applicable to the proceedings before the NCLT. When the petition is filed under Companies Act, 2013 under Section 241-242, pleadings which are submitted are record of the Court and no amendment or tinkering in pleadings filed by the parties can be allowed without leave of the Court.

 

4.    The first principle which is to be noticed is the fact that any amendment in the pleadings which is filed by a party under Section 241 and 242 of the Companies Act requires leave of the Court.

 

5.    The Hon’ble Supreme Court has held that a pleading, once filed, is a part of the record of the court and cannot be touched, modified, substituted, amended or withdrawn except by the leave of the court. Even though the said observation was made in reference to the Civil Procedure Code, however, the provisions of Section 153 of CPC and Rule 155 of NCLT Rules, 2016 reflect the same proposition. The judgment is attracted in the facts of the present case.


[1] Advocate, Delhi High Court [LLB, ACS, BCOM(H)], Budhirajalawchambers@gamil.com

[2] Deloitte Haskins and Sells LLP v.  Union of India, Company Appeal (AT) No. 261 of 2024, NCLAT Judgment dated 15/05/2025

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