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2010 (5) TMI 151 - SC - Indian LawsNational Tax Tribunal Act 2005 (NTT) - National Company Law Tribunals under the Companies Act 1956 (NCLT) - The basis of attack in regard to Part 1B and 1C of Companies Act and the provisions of NTT Act are completely different. The challenge to Part IB & IC of Companies Act 1956 seeks to derive support from Article 323B by contending that Article 323B is a bar for constitution of any Tribunal in respect of matters not enumerated therein. On the other hand the challenge to NTT Act is based on the challenge to Article 323B itself. - We therefore find that these petitions relating to the validity of the NTT Act and the challenge to Article 323B raises issues which did not arise in the two civil appeals. Therefore these cases can not be disposed of in terms of the decision in the civil appeals but requires to be heard separately.
Issues:
1. Constitutional validity of the National Tax Tribunal Act, 2005 and related provisions. 2. Challenge to section 46 of the Constitution (Forty-second Amendment) Act, 1976 and Article 323B of the Constitution of India. 3. Specific challenges to sections 13, 5(5), and 7 of the Act. 4. Consideration of challenges to Parts 1B and 1C of the Companies Act, 1956. 5. Examination of the validity of Article 323B in relation to the establishment of tribunals. 6. Comparison of challenges to the NTT Act and the Companies Act provisions. Analysis: 1. The petitions before the Supreme Court challenged the constitutional validity of the National Tax Tribunal Act, 2005. There was also a specific challenge to section 46 of the Constitution (Forty-second Amendment) Act, 1976 and Article 323B of the Constitution of India. The argument presented was that these provisions compromised the independence of the judiciary by creating a parallel system of justice with extensive executive control. 2. Various challenges were raised regarding specific sections of the Act. Section 13 allowed any authorized person to appear before the National Tax Tribunal, which raised concerns. Section 5(5) regarding the transfer of Members between Benches, and Section 7 concerning the Selection Committee composition were also challenged. The Union of India agreed to make necessary amendments to address these issues. 3. The Court considered challenges to Parts 1B and 1C of the Companies Act, 1956, alongside the issues related to the National Tax Tribunal Act. The interrelation of these challenges and their impact on the constitutional framework were discussed. 4. The validity of Article 323B in enabling the establishment of tribunals for adjudication and trial was a central point of contention. Concerns were raised about the lack of adherence to traditional rules of evidence and the potential impact on criminal trials. The separation of powers between the executive and judiciary was a key aspect of the debate. 5. The Court highlighted the distinction between challenges to the National Tax Tribunal Act and the provisions of the Companies Act. While the challenges to the Companies Act were based on specific sections, the challenge to the NTT Act was rooted in the validity of Article 323B itself. This distinction required separate consideration by the Court. 6. Ultimately, the Court directed that the matters related to the NTT Act and the challenge to Article 323B be delinked and listed separately for further hearings. The complexity and distinct nature of the issues involved necessitated separate consideration and could not be disposed of based on previous decisions related to civil appeals.
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