APPEAL

APPEAL
APPEAL

IMPORTANT APPEALS FOR EXAMINATION

FOR
CA FINAL AUDIT & LAW
PAPER 3 & 4
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 NOTES ON APPEALS
FOR CA FINAL LAW EXAMS
Common process of appeal

1
Remember the Appellate structure- like the authorities involved. For example, in SEBI it
is Adjudicating Authority- Securities Appellate Tribunal- Supreme Court.

2
Normally there are 2 layers of authorities. For example, In SEBI, against the order of
adjudicating authority, appeal can be made to the SAT and against the order of SAT
the appeal can be made to Supreme Court and the decision of Supreme Court is Final
and Binding. So the first layer of appellate authority was SAT and the second was
Supreme Court.

3
Every Appellate Process has a common part involved. Do focus on that common
part. It will constitute 90 percent of the entire process. At last what you will have to
remember is only 10 percent.

Common structure taking example of SEBI

Appeal can be made against the order of Adjudicating Authority to SAT within
1
prescribed no of days
2 The delay can further be condoned by SAT if the cause is genuine.
3 SAT shall endeavor to dispose of the matter within prescribed number of days.
4 SAT shall confirm/modify or set aside the order.
SAT shall give both the parties the opportunity of being heard or follow
5 principles of natural justice or follow the principle of Audi Alteram Partem.

6 Copy of order of SAT shall be communicated to both the parties.

7 Appeal can be made against the order of SAT to SC within prescribed no of days.
8 The delay can further be condoned by SC if the cause is genuine.
9 SC shall endeavor to dispose of the matter within prescribed number of days.

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SC shall give both the parties the opportunity of being heard or follow principles
10
of natural justice or follow the principle of Audi Alteram Partem.
11 Copy of order of SC shall be communicated to both the parties.
12 The decision of Supreme Court shall be final and binding on both the parties.

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Foreign Exchange Management ACT, 1999
Section 17-Appeal to Section 19-Appeal to Section 35-Appeal to High
SD(Appeals) Appellate Tribunal Court
Appeal to SD(Appeals) may Appeal to AT may be made  Appeal to HC against
be made against the order of against the order of an order of AT by
AA, if AA is- SD(Appeals), if AA is other CG/accused.
(a) Assistant Director of than  Appeal can be filed only
Enforcement. (a) Assistant Director of on a question of law.
Enforcement. (i.e., AT is the final fact
( b) Deputy Director of binding authority).
Enforcement. ( b) Deputy Director of  Appeal must be filed
Within 4 5 d a y s p l u s Enforcement. within 60 days.
Extension by SD(Appeals) Within 4 5 d a y s p l u s  Delay may be condoned
Extension by AT up to 60 days if sufficient
cause is shown.
Common provisions relating to Appeals
 An opportunity of being heard shall be given to the parties to the appeal.
 A person preferring an appeal to the Appellate Tribunal or the Special Director
(Appeals) under this Act may either appear in person or take the assistance of a
legal practitioner or a chartered accountant of his choice to present his case before the
Appellate Tribunal or the Special Director (Appeals), as the case may be.
 The authority may confirm the order, modify the order or set aside the order.

Prevention of Money Laundering ACT

A Provision of Appeals
Appeal against the order of Adjudicating Authority to the Appellate Tribunal within 45
days accompanied by such fee prescribed.

B
AT may condone the delay if sufficient cause.

C
AT may confirm/modify/set aside the order.

D
Appeal against the order of AT may be filed to High Court within 60 days of communication of
decision of AT
E
HC may condone the delay maximum by further 60 days.
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THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010

Section 31 -Appeal

(1) Any person aggrieved by any order made under Section 29 may prefer an appeal as
follows:

Where an order is passed by- Appellate Authority

the Court of Session The High Court to which such Court is subordinate
any officer specified section 29(1)(b) i.e. by The Court of Session within the local limits of whose
such officer, not below the rank of an Assistant Sessions jurisdiction such order of adjudication of confiscation was
Judge made
Appeal is to be preferred within one month from the date of communication to such person of the order.

However, the appellate court may, allow such appeal to be preferred within a further period of one
month, but not thereafter.

•
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Section 32 -Revision of orders by Central Government

(1) The Central Government may either-of its own motion or on an application for revision by the person
registered under this Act, call for and examine the record of any proceeding under this Act in which any such
order has been passed by it, may pass such order thereon as it thinks fit.
(2) Time limit for power of revision: The Central Government shall not of its own motion revise any order
under this section if the order has been made more than one year previously.

(3) Time limit for making application for revision: In the case of an application for revision by a person
registered under the act, the application must be made within one year from the date on which the order
in question was communicated to him or the date on which he otherwise came to know of it, whichever
is earlier.

If the Central Government is satisfied that such person was prevented by sufficient cause from making the
application within that period it may admit an application made after the expiry of that period.

As per Regulation 20 of the FCR Rule 2011, an application for revision of an order passed by the competent
authority under section 32 of the Act shall be made to the Secretary, Ministry of Home Affairs, Government
of India, New Delhi on a plain paper and it shall be accompanied by a fee of rupees three thousand only,
which shall be paid through the payment gateway specified by the Central Government.

INSOLVENCY AND BANKRUPTCY CODE, 2016

Section 61 -Appeals and Appellate Authority.

(1) National Company Law Tribunal (NCLT) constituted under section 408 of Companies Act, 2013 is the
Adjudicating Authority (AA) for purpose of insolvency resolution and liquidation for corporate persons and
personal guarantors thereof [section 5(1) read with section 60(1) of the Code]
(2) National Company Law Appellate Tribunal (NCLAT) is the appellate authority over decisions of NCLT
Every appeal under sub-section 61 (1) shall be filed within thirty days before the National Company Law
Appellate Tribunal:
Provided that the National Company Law Appellate Tribunal may allow an appeal to be filed after the expiry
of the said period of thirty days if it is satisfied that there was sufficient cause for not filing the appeal but
such period shall not exceed fifteen days.
Appeal against order under section 54L -Section 54M –(it has same grounds as Section 61(3)
➢ *Appeal against Approval of Resolution Plan: Any appeal from an order approving the
resolutionplan shall be in the manner and on the grounds laid down in sub-section (3) of
section 61.
As per Section 61(3) of the Code, an appeal against an order of Adjudicating Authority for
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approving the resolution plan may be filed on the following grounds: -
(a) The approved resolution plan is in contravention of the provisions of any law for the time
being in force.
(b) There has been material irregularity in exercise of the powers by the resolution
professional during the corporate insolvency resolution period.
(c) The debts owed to operational creditors of the corporate debtor have not been provided for
in the resolution plan in the manner specified by the Board.
(d) The insolvency resolution process costs have not been provided for repayment in priority to
all other debts.
(e) The resolution plan does not comply with any other criteria specified by the Board.
➢ An appeal against a liquidation order passed under section 33, or sub-section (4) of section
54L, or sub-section (4) of section 54N, may be filed on grounds of material irregularity or fraud
committed in relation to such a liquidation order.
➢ An appeal against an order for initiation of corporate insolvency resolution process passed
under sub-section (2) of section 54-O may be filed on grounds of material irregularity or fraud
committed in relation to such an order.
Section 62 -Appeal to Supreme Court.
Appeal against order of NCLAT can be filed to Supreme Court on question of law arising out of such
order, within 45 days. The Supreme Court may, if it is satisfied that a person was prevented by sufficient
cause from filing an appeal within forty-five days, allow the appeal to be filed within a further period not
exceeding fifteen days.

[Section 42] Appeal against the decision of liquidator: A creditor may appeal to the Adjudicating
Authority against the decision of the liquidator accepting or rejecting the claims within fourteen days
of the receipt of such decision.

Companies Act, 2013

Section 218 -PROTECTION OF EMPLOYEES DURING INVESTIGATION.

Appeal: If the company, other body corporate or person concerned is dissatisfied with the objection
raised by the Tribunal, it may, within a period of thirty days of the receipt of the notice of the
objection, prefer an appeal to the Appellate Tribunal. The decision of the Appellate Tribunal on such
appeal shall be final and binding on the Tribunal and on the company, other body corporate or
person concerned.
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Companies Act, 2013 (NCLT)

1
Any person aggrieved by an order of Tribunal may prefer an appeal to the
Appellate Tribunal. (Section 421)

2
The appeal shall be filed within a period of 45 days from the date on which a copy of
order is made available to the person aggrieved accompanied by such fees as may
be prescribed

3
On the receipt of appeal, AT after giving a reasonable opportunity of being heard
may confirm, modify or set aside the order.

4
The AT shall send a copy of every order made by it to the Tribunal and the parties to
appeal.

5
Any person aggrieved by an order of AT may file an appeal to the SC within 60 days
from the date of receipt of order of AT.

6
Provided that the Supreme Court may, if it is satisfied that the appellant was
prevented by sufficient cause from filing the appeal within the said period, allow it to
be filed within a further period not exceeding 60 days.
Compromise and Arrangement
Section 237- Amalgamation of Companies by CG in Public interest
1
Every member/creditor of each transferor co. before amalgamation, shall have, as nearly
as possible, same rights/ interest in the transferee company.

2
If the rights/ interests are less, then they shall be entitled for compensation.

3
Person aggrieved by above compensation, may prefer an appeal to Tribunal, within 30
days of date of publication of such assessment in official gazette.
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Removal of names of Companies from the ROC

Section 252- Appeal to the Tribunal

1
Person aggrieved by an order of ROC u/s 248 (1) for striking off the name, may file an
appeal to the Tribunal within 3 years from date of ROC's order. If Tribunal is of the
opinion that the removal is not justified, it may order restoration of the name after
giving Reasonable opportunity of being heard.

2
If a Company /Members /Creditors/ Workmen thereof feels aggrieved by the company
having its name struck off from the register of companies, they may appeal to the
Tribunal before expiry of 20 years from publication in Official gazette.

3
If Tribunal is of the opinion that the removal is not justified, it may order restoration of
the name after giving Reasonable opportunity of being heard.

ONLY FOR OLD SYLLABUS

Provisions regarding appeals

 Appeal can be filed to Appellate Tribunal against order of commissioner within 60days.
(Delay may be condoned.)

 Against the order of appellate tribunal, appeal may be filed to Supreme Court
within 60 days. (Delay may be condoned).

Banking Regulation Act

Section 36AA-Powers of RBI to Remove Managerial and Other Persons from office
 Where the Reserve Bank is satisfied that in the public interest or for preventing the
affairs of a banking company being conducted in a manner detrimental to the
interests of the depositors or for securing the proper management of any banking
company it is necessary so to do, the Reserve Bank may, for reasons to be recorded in
writing, by order, remove from office, with effect from such date as may be specified
in the order, any Chairman, Director], Chief Executive Officer (by whatever
name called) or other officer or employee of the banking company.
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 Before removal opportunity of being heard must be given.

 Such terminated officials can make appeal to CG within 30 days.
 The decision of CG cannot be called into question.

Section 36AG-Compensation to Shareholders of Acquired Bank

 Compensation shall be given in accordance with the principles contained in Fifth
Schedule.

 Compensation is payable to the Shareholders of Acquired Bank.

 Shareholders aggrieved with the matter of compensation may request the CG to

refer the matter to Tribunal.

 If 1/4th of Number of Shareholders holding at least 1/4th of paid-up share

capital request to CG, CG shall refer matter to tribunal and compensation
determined by Tribunal shall be final and binding.

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