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MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Dethi, the 4th April, 202llChaitra 14, lg43 (Saka)

THE TRIBLINALS REFORMS

(RATIONALISATION AND CONDITIONS OF

SERVICE) ORDINAN CE, 2021

No. 2 op 2021

Promulgated by the President in the Seventy-Second

Year of the Republic of India.

. An Ordinance further to amend the Cinematograph

Act, 1952, the Customs Act, 1962, the Airports Authority

of India Act, 1994, the Trade Marks Act, 1999 and the

Protection of Plant Varieties and Farmers' Rights Act,

2001 and certain other Acts.

WHEREAS The Tribunal Reforms (Rationalisation

and Conditions of Service) Bill, 20Zl has been

introduced in the House of the People on the 13ft day of

February,202l;

660

u<rvre {q[d, H-+ t o qr zoz t

AND WHEREAS the aforesaid Bill,qould not be taken

up for considerati6n and passing in the House of the

People;

AND WHEREAS Parliament is not in session and

the President is satisfied that circumstances exist which

render it necessary for him to take immediate action;

NOW, THEREFORE, in exercise of the powers

conferred by clause (1) of article 123 of the Constitution,

the President is pleased to promulgate the following

Ordinance:-

CseprBn I

PRsr-rvrNeRv

1.(1) This Ordinance may be called the Tribunals

Reforms (Rationalisation and Conditions of Service)

Ordinance,202l.

(2) It shall come into force at once.

2.ln this Ordinance, unless the context otherwise

requires,-

(a) "notified date" means the date of

commencement of this Ordinance;

(b) "Schedule" means the Schedule appended to

this Ordinance;

CnaprsnII

AMENDIVmNTS To THE CINEMATOGRAPH ACT,I952

3. In the Cinernatograph Act, 1952,-

(a) in section 2, clause (h) shall be omitted;

(b) in section 5C,-

(i) for the word "Tribunal", at both the

places where it occurs, the words "High Court"

shall be substituted;

(ii) sub-section (2) shall be omitted;

(c) sections 5D and 5DD shall be omitted;

(d) in section 6, the words "or, as the case may be,

decided by the Tribunal (but not including any

proceeding in respect of any matter which is pending

before the Tribunal)" shall be omitted;

(e) in sections 7A and 7C, for the word

"Tribunaf', wherever it occurs, the words "High

Court" shall be substituted;

Short title and

comrnencement.

Definitions.

Amendment of

Act37 of 1952.

,ffi ^{toqq zozt}

660 ⁽¹⁾

Amendment of

Act 14 of 1957.

(0 in sections 7D, 7E and 7F, the words "the

Tribunal,", wherever they occur, shall be omitted;

(g) in section 8, in sub-section (2), clauses (h), (i),

O, ^{and (k) shall be omitted.}

CnRptsR IIr

AMENDMENTS TO THE COPYRIGHT ACT, 1957

3. In the Copyright Act,1957,-

(a) in section2,-

(i) clause (aa) shall be omitted;

(ii) clause (fa) shall be re-lettered as clause (faa)

and before the clause (faa) as so re-lettered, the

following clause shall be inserted namely:-

'(fa) "Commercial Court", for the purposes of any

State, means a Commercial Court constifuted under

section 3, or the Commercial Division of a High

Court constituted under section 4, of the Commercial

Courts Act, 2015;';

4 of 2016.

(iii) for clause (u), the following clause shall be

substituted, namely:-

'(u) "prescribed" means,-

(A) in relation to proceedings before a High

Court, prescribed by rules made by the High

Court; and

(B) in other cases, prescribed by rules made

under this Act;';

(b) in section 6,-

(i) for the words "Appellate Board", wherever

they occur, the words "Commercial Court" shall be

substituted;

(ii) the words "constituted under section l l whose

decision thereon shall be final" shall be omitted;

660 ⁽²⁾

fuirqq*,frqifi roqrzozr

(c) in Chapter ll, in the Chapter heading, the words

"AND APPELLATE BOARD" shall be omitted;

(d) s-ections 11 and 12 shall be oriitted;

(e) in sections 19A, 23, 3l,3lA, 3lB, 31C, 3lD, 32,

324 and 33A, for the words "Appellate Board", wherever

they occur, the words "Commercial Court" shall be

substituted;

(f) in section 50,

wherever they occur,

substituted;

the words "Appellate Board",

words "High Court" shall be

(g) in section.53A,-

(i) for the.words "Appellate Board", wherever

they occur, the words "Commercial Court" shall be

substituted;

(ii) in sub-section (2), the words "and the

decision of the Appellate Board in this behalf shall

be final" shall be omitted;

(h) in section 54, for the words "Appellate Board",

the words "Commercial Court" shall be substituted;

(i) for section 72, the following section shall be

substituted, namely:-

"72. (l) Any person aggrieved by any final

decision or order of the Registrar of Copyrights may,

within three months from the date of the order or

decision, appeal to the High Court.

(2) Every such appeal shall be heard by a single

Judge of the High Court:

Provided that any such Judge may, if he so

thinks fit, refer the appeal at any stage of the

proceeding to a Bench of the High Court.

(3) Where an appeal is heard by a single Judge,

a further appeal shall lie to a Bench of the High

Court within three months from the date of decision

or order of the single Judge.

for

the

Appeals against

orders

of

Registrar of

Copyrights.

gifurE {-qq{, fr{ifi I 6 o[.r 202 I

650 ⁽³⁾

(a) In calculating the period of three months

provided for an appeal under this section, the time

taken in granting a certified copy of the order or

record of the decision appealed against shall be

excluded.";

0) ^{in sections 14 and, 75, the words "and the}

Appellate Board", wherever they occur, shall be omitted;

(k) in section 77, the words "and every member of

the Appellate Board" shall be omitted;

(l) in section 78, in sub-section (2),-

(i) clauses (cA) and (ccB) shall be omitted;

(ii) in clause (f), the words "and the Appellate

Board" shall be omitted.

Csaprsn IV

AMENDMENTS To TUT CusToMS ACT, 1962

Amendment of

5. In the Customs Act,l962,-

Act52 of1962.

(a) in section 28E, clauses (ba), (f) and (g) shall be

omitted;

(b) in section 28EA, the proviso shall be omitted;

(c) in section 28F, sub-section (1) shall be omitted;

(d) in section 28KA,-

(i) in sub-section (1), for the word "Appellate

Authority", at both the places where they occur, the

words "High Court" shall be substituted;

(ii) sub-section (2) shall be omitted;

(e) in section 28L, the words "or Appellate

Authority", wherever they occur, shall be omitted;

(f) in section 28M,-

(i) in the marginal heading, the words "and

660 {4)

u*slr6tr;rqa, frRiq' rrqr zozr

Appellate Authority" shall be omitted;

(ii) sub-section (2) shall be omitted.

CuaprsnV

ANasNorvreNTs To rHE PATENTs Acr, 1970

Amendment of

6. In the Patents Act,l970,-

Act 39 of 1970.

(a) in section2,in sub-section (1),-

(i) clause (a) shall be omitted;

(ii) in clarise (u), sub-clause (B) shall be omitted;

(b) in section 52, the words "Appellate Board or",

wherever they occur, shall be omitted;

(c) in section 58,-

(i) the words "the Appellate Board or", wherever

they occur, shall be omitted;

(ii) the words "as the case may be" shall be

omitted;

(d) in section 59, the words "the Appellate Board or"

shall be omitted;

(e) in section 64, in sub-section (l), the words "by

the Appellate Board" shall be omiued;

(f).in section 71, for the words 'Appellate Board"

and "Board", wherever they occur, the words "High

Court" shall be substituted;

(g) in section 76, the words "or Appellate Board"

shall be omitted;

(h) rn section 113,-

(i) in sub-section (1),-

(A) the words "the Appellate Board ot'',

wherever they occur, shall be omitted;

e'i#s.r€ lTq[d, ftri+ r o qr zoz r

660 ^(s)

(B) the words ^o'as the case may be" shall be

omitted;

(ii) in sub-section (3), the words "or the Appellate

Board" shall be omitted;

(i) in Chapter XIX, for the Chapter heading, the

Chapter heading "APPF.ALS" shall be substituted;

O ^{sections 116 and 117 shall be omitted;}

(k) in section ll7 A, for the words "Appellate

Board", wherever they occur, the words "High Court"

shall be substiruted;

(l) sections ll71,1l7C and 117D shall be omitted;

(m) in section ll7B, for the words "Appellate

Board", wherever they occur, the words "High Court"

shall be substituted

(n) sections I t7F, 1l7G and 117H shall be omitted;

(o) in section 151,-

(A) in sub-section (1), the words "or the

Appellate Board", at both the places where they

occur, shall be omitted;

(B) in sub-section (3), for the words "the

Appellate Board or the courts, as the case may be",

the words "the courts" shall be substituted;

(p) in section 159, in sub-section (2), clauses (xiia),

(xiib) and (xiic) shall be omitted.

CHaprBnVl

AMENDMENTS TO THE AIRPORT AUTHORITY

OF INDIA ACT, 1994

7. In the Airports Authority of India Act,1994,- ^{Amendment of}

Act 55 of 1994.

(a) in section 28A, clause (e) shall be omiued;

660 ⁽⁶⁾

Edirrq {Entrd, ft<io 1 6 q1 2or t

(b) in section 28E, for the word "Tribunal", at

both the places where it occurs, the words "Central

Gov_ernment" shall be substituted;

(c) sections 28I,28J and 28JA shall be omitted;

(d) in section fgf(,-

(i) in sub-section (1),-

(A) for the words "Tribunal in such form as

may be prescribed", the words "High Court" shall

be substituted;

(B) in the proviso, for the word "Tribunal", the

words "High Court" shall be substituted;

(ii) sub-sections (2), (3), (4) and (5) shall be

omitted;

(e) section 28L shall be omiued;

(f) in section 28M, the words "or the Tribunal"

shall be omiued;

(g) in section 28N, in sub-section (2), for the word

"Tribunal", the words "High Court" shall be

substituted;

(h) in section 33, the words "or the Chairperson of

the Tribunal" shall be omitted;

(i) in section 41, in sub-section (2), clauses (gvi),

(gvii), (gvliD and (gix) shall be omitted.

CHAPTER VII

AMENDMENTS TO THE TRADE MARKS

ACT, 1999

Amendment of

8. In the Trade Marks Act, 1999,-

Act 47 of 1999.

(a) in section2,in sub-section (l): -

(i) clauses (a), (d), (0, (k), (n), (ze) and (zf)

shall be omitted;

Efrerc {Eiq:r, frqi6 t o qr zoz t

sao ^(t)

(ii) for clause (s), the foliowing clarr" shall be

substituted, namely:-

' (s) "prescribed" means,-

(i) in relation to proceedings before a High

Court, prescribed by rules made by the High

Court; and

(ii) in other cases, prescribed by rules

made under this Act;';

(b) in section 10, for the word "tribunal", the

words "Registrar or the High Court, as the case may

be," shall be substituted;

(c) in section 26, for the word "tribunal", the

words "Registrar or the High Court, as the case may

be," shall be substituted;

(d) in section 46, in sub-section (3), for the word

"tribunal", the words "Registrar or the High Court,

as the case may be," shall be substituted;

(e) in section4T,-

(i) for the words 'Appellate Board", at both

the places where it occurs, the words "High

Court" shall be substituted;

(ii) for the word "tribunal", wherever it occurs,

the words "Registrar or the High Court, as the

case may be," shall be substituted;

(0 in section 55, in sub-section (1), for the word

"tribunal", the words "Registrar or the High Court,

as the case may be," shall be substituted;

(g) in section 57, -

(i) for the words 'Appellate Board", wherever it

ocsurs, the words "High Court" shall be

substituted;

(ii) for the word "kibunal", wherever it occurs,

the words "Registrar or the High Court, as the case

may be," shall be substituted;

(h) in section 71, in sub-section (3), for the word

"tribunal", the words "Registrar or the High Couit,

as the case may be," shall be substituted;

(i) in Chapter XI, for the Chapter heading, the

660 ⁽⁸⁾

6fu6qqqq, ftqis 16 qf 2s21

Bar to appear

before

Registrar.

Chapter heading "APPEALS" shall be substituted;

(j) sections 83, 84, 85, 86, 87,88, 89, 89A and 90

shall be omitted;

(k) in section 91,for the words "Appellate

Board", wherever they occur, the words "High

Court" shall be substituted;

(l) sections 92 and93 shall be omitted;

(m) for section 94, the following section shall be

substituted, namely:-

"94. On ceasing to hold the office, the erstwhile

Chairperson, Vice-Chairp-erson or other Members,

shall not appear.lefore the Registrar.";

(1) sections 95 and 96 shall be omitted;

(m) in section 97, for the words "Appellate

Board", wherever they occur, the words "High

Court" shall be substituted;

(n) in section 98, for the words "Appellate Board"

and "Board", wherever they occur, the words "High

Court" shall be substituted;

(o) sections 99 and 100 shall be omitted;

(p) in section 113, -

(i) for the words "Appellate Board", at both

the places where they occur, the words "High

Court" shall be substituted;

(ii) for the word "tribunal", the words

"Registrar or the High Court, as the case may be,"

shall be substihrted;

(q) in section 123, the words "and every Member

of the Appellate Board" shall be omitted;

G) ^{in sections 124 and 125, for the words}

"Appellate Board", wherever they occur, the words

'High Court" shall be substituted;

Efur€ rtqrd, ftriu r o qr zoz r

d6o ^(e)

Amendment of

Act 48 of 1999.

(s) in section 130, the words "the Appellate Board

or" shall be omitted;

..

(t) in section l4l, for the words "Appellate

Board", at both the places where they occur, the

words "High Court" shall be substituted;

(u) in section 144, for the word "tribunal", the

words "Registrar. or the High Court, as the case may

be," shall be substituted;

(v) in section 157 , in sub-section (2),-.

(i) clauses (xxxi) and (xxxii) shall be omitted;

(ii) in clauss (xxxiii), for the words "Appellate

Board", the words "High Court" shall be

substituted.

CHAPTER VIII

AMENDME}ITS TO THE GEOGRAPHICAL

INDICATIONS OF GOODS (REGISTRATION AND

PROTECTION) ACT, 1999

9. In the Geographical Indications of Goods

(Registration and Protection) Act, 1999,-

(a) in section 2, in sub-section (1), clauses (a)

and (p) shall be omiued;

(b) in section 19, for the word "tribunal", the

words "Registrar or the High Court, as the case

may be," shall be substituted;

(c) in section 23, for the words "and before the

Appellate Board before which", the words "before

whom" shall be substituted;

(d) in section 27, -

(i) for the words "Appellate Board", wherever

they occur, the words "High Court" shall be

substituted;

(ii) for the word "tribunal", wherever it occurs,

660 ⁽¹⁰⁾

Bffiqrrr€ {r{nrrd, fuim t o qt zozr

the words "Regislrar or the High Courr. u, ,n.

case may be," shail be substituted;

(ei in Chapter VII, for the Cilapter heading, the

Chapter heading "APPEALS" shall be substituted;

(f) in section 31,-

(i) for the words "Appellate Board", wherever

they occur, the words "High Court" shall be

substituted;

(ii) sub-section (3) shall be omitted;

(g) sections 32 and,33 shall be omitted;

(h) in sections. .34 and,35, for the words "Appellate

Board", wherever they occur, the words "High

Court" shall be substituted;

(i) section 36 shall be omitted;

fi) ^{in sections 48,-}

(i) for the words "Appellate Board", at both the

places where it occurs, the words "High Court"

shall be substituted;

(iD for the word "tribunal", the words

"Registrar or the High Court, as the case may be,"

shall be substituted;

(k) in sections 57 and 58, for the words "Appellate

Board", wherever they occur, the words "High

Court" shall be substituted;

(1) in section 63, the words "the Appellate Board

or" shall be omitted;

(m) in section 72, for the words "Appellate

Board", wherever they occur, the words "High

Court" shall be substituted;

(n) in section 75, for the word "tribunal", the

words "Registrar or the High Court, as the case may

be," shall be substituted;

Amendment of

Act 53 of2001.

(o) in section 87, in sub-section (2), clause (n)

shall be omitted.

CHAPTER IX

AMENDMENTS TO THE PROTECTION OF

PLANT VARIETIES AND FARMERS' RIGHTS

ACT,2OOI

10. In the Protection of Plant Varieties and Farmers'

Rights Act,200l,-

(a) in section2, -

(i) clauses (d), (n) and (o) shall be omitted;

(ii) for clause (q), the following clause shall be

substituted, namely:-

'(q) "prescribed" means,-

(A) in relation to proceedings before a

Court, prescribed by rules made by the

Court; and

(B) in other cases, prescribed by rules made

under this Act;':

(iii) clauses (y) and (z) shall be omitted;

(b) in section 44, the words "or the Tribunal" shall

be omiued;

(c) in Chapter VIII, for the Chapter heading, the

Chapter heading "APPEAI S" shall be substituted;

(d) sections 54 and 55 shall be omitted;

(e) in section 56,-

(i) for the word "Tribunal", wherever they occur,

the words "High Court" shall be substituted;

(ii) sub-section (3) shall be omiued;

(f) in section 57,-

High

High

660 ⁽¹²⁾

ud{Fcirinqd, frqim roqr zozr

(i) for the word "Tribunal", wherever it occurs, the

words "High Court" shall be subsjituted;

(ii) sub-section (5) shall be omitted;

(g) sections 58 and 59 shall be omitted;

(h) in section 89, the words "or the Tribunal" shall

be omitted

CHAPTER X

AMENDMENTS TO THE CONTROL OF

NATIONAL HIGHYLT JK#'

AND TRAFFIC)

11. In the Confiol of National Highways (Land and

Traffic) Act,2002,-

(a) in section 2,-

(i) clause (a) shall be omitted;

(ii) after clause (d), the following clause shall be

inserted, namely:-

'(da) "Court" means the principal Civil Court of

original ^jurisdiction in a district, and includes the

High Court in exercise of its ordinary original civil

jurisdiction;';

(iii) clause (l) shall be omitted;

(b) in Chapter II, in the Chapter heading, the

words "AND TRIBUNALS, ETC." shall be omitted;

(c) section 5 shall be omitted;

(d) for section 14, the following section shall be

substituted, namely:-

"14. An appeal from any order passed, or any

action taken, excluding issuance or serving of

notices, under sections 26, 27, 28, 36, 37 and 38 by

the Highway Administration or an officer authorised

on its behalf, as the case may be, shall lie to the

Amendment of

Act 13 of2003.

Appeals.

effiqrE{rqqa, frqiqi 16w 2021

660 ⁽¹³⁾

Amendment of

ActT of2017.

Qualifications,

appointment,

etc.,

of

Chairperson and

Members of

Tribunal.

Court.";

(e) sections 15 and 16 shall baomitted;

(f) in section 17, for the word "Tribunal", at both

the places where it occurs, the word "Court" shall be

substituted;

(g) section 18 shall be omitted;

(h) in section 19, for the word "Tribunal", at both

the places where it occurs, the word "Court" shall be

substituted;

(i) section 40 shall be omitted;

fi) ^{in section 41,} -

(i) the words "or every order passed or decision

made on appeal under this Act by the Tribunal"

shall be omitted;

(ii) the words "or Tribunal" shall be omitted;

(k) in section 50, in sub-section (2), clause (f) shall

be omitted.

CHAPTERXI

AMENDMENTS TO THE FINANCE ACT,2OI7

12.ln the Finance Act, 2017 (hereinafter referred to

as the Finance Act),-

(i) for section 184, the following section shall be

substituted, namely:-

"184. (1) The Central Government ffi?y, by

notification, make rules to provide for the qualifications,

appointment, salaries and allowances, resignation,

removal and the other conditions of service of the

Chairperson and Members of the Tribunal as specified in

the Eighth Schedule:

Provided that a person who has not completed the

age of fifty years shall not be eligible for appointment as

a Chairperson or Member:

660 ⁽¹⁴⁾

qffislrd trflqI, ftqio r o Er zoz r

Provided further that the allowances and benefits so

payable shall be to the extent as aJe admissible to a

Central Government officer holding the post carrying the

same pay:

Provided also that where the Chairperson or Member

takes a house on rent, he may be reimbursed a house rent

subject to such limits and conditions as may be provided

by rules.

(2) The Chairperson and Members of a Tribunal

shall be appointed by the Central Government on the

recommendation of a Search-cum-Selection Committee

(hereinafter referred to as the Committee) constituted

under sub-section (3), in such manner as the Central

Government may, by. rules, provide.

(3) The Search-cum-Selection Committee shall

consist of--

(a) the Chief Justice of India or a Judge of

Supreme Court nominated by him- Chairperson.of

the Committee;

(b) two Secretaries nominated by the Government

of India- Members;

(c) one Member, who-

(i) in case of appointment of a Chairperson

of a Tribunal, shall be the outgoing

'Chairperson of the Tribunal; or

(ii) in case of appointment of a Member of a

Tribunal, shall be the sitting Chairperson of the

Tribunal; or

(iii) in case of the Chairperson of the

Tribunal seeking re-appointnent, shall be a

retired Judge of the Supreme Court or a retired

Chief Justice of a High Court nominated by the

Chief Justice of lndia:

Provided that, in the following cases, such

Member shall always be a retired Judge of the

Supreme Court or a retired Chief Justice of a

ddsrE{qr*, frqis ro

High Court nominated by the Chief Justice of

India, namely:-

(i) Industrial Tribunal constituted by the

Central Govemment under the Industrial

Disputes Act,7947;

14 of 194t.

(ii) Tribunals and Appellate Tribunals

constituted under the Recovery of Debts Due to

Banks and Financial Institutions Act, 1993;

51 of 1993.

(iii) Tribunals where the Chairperson or the

outgoing Chairperson, as the case ,may be, of

the Tribunal is not a retired Judge of the

Supreme Court or a retired Chief Justice or

Judge of a High Courti and

(iv) such other Tribunals as may be notified

by the Central Government in consultation with

the Chairperson of the Search-cum-Selection

Committee of that Tribunal; and

(d) the Secretary to the Government of India in

the Ministry or Department under which the

Tribunal is constituted or established -

Member-

Secretary.

(4) The Chairperson of the Committee shall have

the casting vote.

(5) The Member-Secretary of the Committee

shall not have any vote.

(6) The Committee shall determine its procedure

for making its recommendations.

(7) Notwithstanding anything contained in any

judgment, order or decree of any court or in any law

for the time being in force, the Committee shall

recommend a panel of two names for appointment to

the post of Chairperson or Member, as the case may

be, and the Central Government shall take a decision

on the recommendations of the Commiffee preferably

within three months from the date on which the

Committee makes its recommendations to the

Government.

660 ⁽¹⁶⁾

Rffislcttqq*, fr4i6 16 q1 2621

(8) No appointment shall be invalid merely by

reasoq of any vacancy or absence in the Comrnittee.

(9) The Chairperson and Member of a Tribunal

shall be eligible for re-appointment in accordance with

the provisions of this section:

Provided that in making such re-appointment,

preference shall be given to the service rendered by

such person.

(10) The Central Government shall, on the

recommendation of the Committee, remove from

office, in such manner as may be provided by rules,

any Member, who-

(a) has been adjudged as an insolvent; or

(b) has been convicted of an offence which

involves moral turpitude; or

(c) has become physically or mentally

incapable of acting as such a Member; or

(d) has acquired such financial or other

interest as is likely to affect prejudicially his

functions as a Member; or

(e) has so abused his position as to render his

continuance in offrce prejudicial to the public

interest:

Provided that where a Member is proposed to

be removed on any ground specified in clauses

(b) to (e), he shall be informed of the charges

against him and given an opportunity of being

heard in respect of those charges.

Explanation.- For the purposes of this section, the

expressions -

(i) "Tribunal" means a Tribunal, Appellate Tribunal

or Authmity as specified in column (2) of the Eighth

Schedule;

660 ⁽¹⁷⁾

Amendment

section 186.

(ii) "Chairpe sorr" includes Chairperson, Chairman,

President and Presiding Officer of a Tribunal;

(iii) "Member" includes Vice-Chairman, Vice-

Chairperson, Vice-President, Account Member,

Administrative Member, Judicial Member, Expert

Member, Law Member, Revenue Member and

Technical Member, as the case may be, of a

Tribunal.";

(ii) in section 184 as so substituted, after sub:section

(10) and before the Explanation, the following sub-

section shall be inserted and shall be deemed to have

been inserted with effect from the 26'h May, 2017,

namely:-

"(11) Notwithstanding anything contained in any

judgment, order, or decree of any court or any law for the

time being in force, -

(i) the Chairperson of a Tribunal shall hold office

for a term of four years or till he attains the age of

seventy years, whichever is earlier;

(ii) the Member of a Tribunal shall hold office for

a term of four years or till he attains the age of sixty-

seven years, whichever is earlier:

Provided that where a Chairperson or Member is

appointed between the 26th day of May, 2017 and the

notified date and the term of his office or the age of

retirement specified in the order of appointment issued by

the Central Government is greater than that which is

specified in this section, then, notwithstanding anything

contained in this section, the term of office or age of

retirement or both, as the case may be, of the Chairperson

or Member shall be as specified in his order of

appointment subject to a maximum term of office of five

years.".

of

13. Section 186 of the Finance Act shall be

renumbered as sub-section (1) thereof, and after sub-

section (l) as so renumbered, the following sub-section

shall be inserted, namely:-

"(2) Subject to the provisions of sections 184 and

185, neither the salary and allowances nor the other terms

and conditions of service of Chairperson, Vice-

660 ⁽¹⁸⁾

Rc#{Fr6 {cfla, fraia 16 qq ron

Chairperson, Chairman, Vice-Chairman, President, Vice-

President, Presiding Officer or Member of the Tribunal,

Appellate Tribunal or, as the case may be, other

Authority may be varied to his disadvantage after his

appointment.".

14.lnthe Finance Act, in the Eighth Schedule, -

(i)items lA,12,14, and 15 shall be omiued;

(ii) for item 16, the following item shall be

substituted, namely:-

(1)

(2\

(3)

16.

National Consumer-

Disputes Redressal

Commissiori

The

Consumer

Protection Act, 2019

(35 of2019)

f5. (1) Notwithstanding anything contained in any

law for the time being in force, any person appointed as

the Chairperson or Chairman or President or Presiding

Officer or Vice-Chairperson or Vice-Chairman or Vice-

President or Member of the Tribunal, Appellate Tribunal,

or, as the case may be, other Authorities specified in the

Schedule and holding office as such immediately before

the notified date, shall, on and from the notified date,

cease to hold such office, and he shall be entitled to claim

compensation not exceeding three months' pay and

allowances for the premature termination of term of his

office or ofany contract ofservice.

(2) The officers and other employees of the

Tribunals, Appellate Tribunals and other Authorities

specified in the Schedule appointed on deputation, before

the notified date, shall, on and from the notified date,

stand reverted to their parent cadre, Ministry or

Department.

(3) Any appeal, application or proceeding pending

before the Tribunal, Appellate Tribunal or other

Authorities specified in the Schedule, other than those

pending before the Authority for Advance Rulings under

the Income-tax Act, 1961, before the notified date, shall

stand transferred to the Court before which it would have

been filed had this Ordinance been in force on the date of

filing of such appeal or application or initiation of the

Amendrnent

Eighth

Schedule.

Transitional

provisions.

43 of 1961.

uffisrErtqrd, fuim ro

Power

remove

diffrculties.

proceeding, and the Court may proceed to deal with such

cases from the stage at which it stood before such

transfer, _or from any earlier stage, or de novo, as the

Court may deem fit.

(4) The balance of all monies received by, or

advanced to, the Tribunal, Appellate Tribunal or other

Authorities specified in the Schedule and not spent by it

before the notified date, shall, on and from the notified

date, stand transferred to the Central Govemment.

(5) All property of whatever kind owned by, or

vested in, the Tribunal, Appellate Tribunal or other

Authorities specified in the Schedule before the notified

date, shall stand transferred to, on and from the notified

date, and shall vest in the Central Government.

16. (1) If any difficulty arises in giving effect to the

provisions of this Ordinance, the Central Government

may, by general or special order published in the Official

Gazette, make such provisions, not inconsistent with the

provisions of this Ordinance, as appear to it to be

necessary or expedient for removing the difficulty.

(2) Every order made under this section shall, as

soon as may be after it is made, be laid before each

Houses of Parliament.

660 ⁽²⁰⁾ .

, ^{ft<im roqr} zotr

THE SCHEDULE

(See section l5)

l. Appellate Tribunal under Cinematograph Act, Jg52 (37 of 1952).

2. Authority for Advance Rulings under Income-tax Act, 1961 (43 of 1961).

3 Airport Appellate Tribunal under Airports Authority of India Act,1994 (Act 55 of 1994).

4. Intellectual Property Appellate Board under Trade Marks Act, I ^ggg (47 of 1999).

5. Plant Varieties Protection Appellate Tribunal under Protection of Plant Varieties and

Farmers' Rights Act, 2001 (53 of 2001).

RAM NATH KOVIND,

President.

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.

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MrNrsrny oF LAw AND JUSTTcE

(Legislative Department)

New Delhi, the 4th April, 202UChaitrat4, tg43 (Saka)

THE INSOLVENCY AND BANKRUPTCY CODE

(AMENDMENT) ORDINANCE, 2021

No. 3 0F 2021

Promulgated by the ^president in the Seventy-second year

of the Republic of India.

An Ordinance further to amend the Insolvency and

Banlcruptcy Code, 20 I 6.

WHEREAS COVID-19 pandemic has impacted

businesses, financial markets and economies all over the

world, including India, and has impacted the business

operations of micro, small and medium enterprises and

.

exposed many of them to financial distress;

AND WHEREAS the Government has taken several

measures to mitigatethe distress caused by the pandemic,

including increasing the minimum amount of default for

initiation of corporate insolvency resolution process to

one crore rupees, and suspending filing of applications

for initiation of corporate insorvency resolution process

in respect of the defaults arising during the period of one

year beginning from 25th March 2020 ;

660 ⁽²¹⁾

660 ⁽²²¹

Ei*flrrdttq[d, frqio' ro Er zozr

Short title and

commenceme[t.

Amendment of

section 4.

4ND ^{WHEREAS such suspension for filing of}

applications for initiation of corporate insolvency

resolution process has ended on 24th March 2021 ;

AND wHEREAS rhe country has shown remarkable

resilience, be it tackling the pandemic or ensuring

economic recovery;

AND WHEREAS micro, small and medium enterprises

are critical for India's economy as they contribute

significantly to its gross domestic product and provide

employment to a sizeable population;

AND wHEREAS it is considered necessary to urgently

address the specific requirements of micro, small and

medium enterprises relating to the resolution of their

insolvency, due to the unique nature of their businesses

and simpler corporate structures;

AND wHEREAS it is considered expedient to provide

an efficient alternative insolvency resolution process for

corporate persons classified as micro,'small and medium

enterprises under the Insolvency and Bankruptcy Code,

2016, ensuring quicker, cost-effective and value

maximising outcomes for all the stakeholders, in a

manner which is least disruptive to the continuity of their

businesses and which preserves jobs;

AND wHEREAS in order to achieve these objectives,

it is considered expedient to introduce a pre-packaged

insolvency resolution process for corporate persons

classified as micro, small and medium enterprises;

ANp wgBREas Parliament is not in session and the

President is satisfied that circumstances exist which

render it necessary for him to take immediate action;

Now, THEREFoRE, in exercise of the powers

conferred by clause (l) of article 123 of the Constitution,

the President is pleased to promulgate the following

Ordinance: ^*

1. (l) This Ordinance may be called the Insolvency

and Bankruptcy Code (Amendment) Ordinanc e, 2021.

(2) It shall come into force at once.

2. In the Insolvency and Bankruptcy Code, 2016 3l of 2016.

(hereinafter referred to as the principal Act), in section 4,

after the proviso, the fbllowing proviso shall be inserted,

namely:-

ffimrjrd{ElrFl, EFTRi 16EIiI 2021

660 ⁽²³⁾

"Provided further that the Central Government

may, by notification, specify such minimum amount

of default of higher value, which-shall not be more

than one crore rupees, for matters relating to the pre-

packaged insolvency resolution process of corporate

debtors under Chapter III-A.".

3. In section 5 of the principal Act,-

(i) after clause (2), the following clause shall be

inserted, namely: -

'(24) "base resolution plan" means a

resolution plan provided by the corporate debtor

under clause (c) of sub-section (a) of section

544;',;

(ii) in clause (5), in sub-clause (b), after the words

"corporate insdivency resolution process", the words

"or the pre-packaged insolvency resolution process, as

the case may be," shall be inserted;

(iii) in clause (11), after the words "corporate

insolvency resolution process", the words "or pre-

packaged insolvency resolution process, as the case

may be" shall be inserted;

(iv) inclause (15), after the words, 'oprocess

period", the words "or by the corporate debtor during

the pre-packaged insolvency resolution process

period, as the case may be," shall be inserted;

(v) in clause (19), after the words "for the

purposes of', the words and frgures "Chapter VI and"

shall be inserted;

(vi) after clause (23), the following clauses shall

be inserted, namely:-

'(23A)"preliminary information" means a

memorandum submitted by the corporate debtor

under clause (b) of sub-section (1) of section 54G;

(23B)"pre-packaged insolvency date" means

the date of admission of an application for

initiating the pre-packaged insolvency resolution

process by the Adjudicating Authority under

clause (a) of sub-section (4) of section54C;

Amendment

section 5.

660 ^(,4)

,frqifi ^{roqr zozr}

Amendment

section 11.

of

(23C) "pre-packaged insolvency resolution

process costs" means-

-

(a) the amount of any inferim finance and the

costs incurred in raising such finance;

(b) the fees payable to any person acting as a

resolution professional and any expenses

incurred by him for conducting the pre-packaged

insolvency resolution process during the pre-

packaged insolvency resolution process period,

subject to sub-section (6) ofsection 54F;

(c) any costs incurred by the resolution

professional in running the business of the

corporate debtor as a going concern pursuant to

an orderunder sub-section (2) ofsection54I;

(d) any costs incurred at the expense of the

Governmbnt to facilitate the pre-packaged

insolvency resolution process; and

(e) anyother costs as may be specified;

(23D) "pre-packaged insolvency'resolution

process period" means the period beginning from

the pre-packaged insolvency commencement date

and ending on the date on which.an order under

sub-section (1) of section 54L, or sub-section (1)

of section 54N, or sub-section (2) of section 54-O,

as the case may be, is passed by the Adjudicating

Authority;';

(vii) in clause (25), after the words, brackets and

figures "of sub-section (2) of section 25", the words,

figures and letter "or pursuant to section 54K, as the

case may be" shall be inserted;

(viii) in clause (27), after the words "corporate

insolvency resolution process", the words "or the pre-

packaged insolvency resolution process, as the case

may be," shall be inserted.

4. In section l1 of the principal Act,-

(i) in clause (a), after the words "corporate

insolvency resolution process", the words 1'or a pre-

packaged insolvency resolution process" shall be

inserted;

ufrsrrd {rqqd, fu-* r o Er zozr

660 ^(2s)

(ii) after clause (a), the following ciause shall be

inserted, namely:-

-

"(aa) a financial creditoi or an operational

creditor of a corporate debtor undergoing a pre-

packaged insolvency resolution process; or";

(iii) after clause (b), the following clause shall be

inserted, namely:-

"(ba) a corporate debtor in respect of whom a

resolution plan has been approved under Chapter

III-A, twelve months preceding the date of making

of the application; or".

5. After section 11 of the principal Act, the

following section shall be inseried, namely:-

"11A. (1) Where an application filed under section

54C is pending, the Adjudicating Authority shall pass

an order to admit or reject such application, before

considering any application filed under section 7 or

section 9 or section 10 during the pendency of such

application under section 54C, in respect of the same

corporate debtor.

(2) Where an application under section 54C is

filed within fourteen days of frling of any application

under section 7 or section 9 or section 10, which is

pending, in respect of the same corporate debtor,then,

notwithstanding anything contained in sections 7, 9

and 10, the Adjudicating Authority shall first dispose

of the application under section 54C.

(3) Where an application under section 54C is

filed after fourteen days of the filing of any

application under section 7 or section 9 or section

10, in respect of the same corporate debtor, the

Adjudicating Authority shall first dispose of the

application under sections 7,9 ot 70.

(4) The provisions of this section shall not apply

where an application under section 7 or section 9 or

section l0 is frled and pending as on the date of the

commencement of the Insolvency and Bankruptcy Code

(Amendment) Ordinanc e, 2021." .

6. In section 33 of the principal Act, in sub-section

(3), after the words, "approved by the Adjudicating

Authority", the words, figures, brackets and letter "under

Insertion of new

section I lA.

Disposal of

applications

under section

54C and under

section 7 or

section 9 or

section 10.

Amendment of

section 33.

660 126)

EdqrE ttqqr, frqifi ro qr zozr

Amendmenl of

section,34.

Insertion of new

Chapter III-A.

Corporate

debtors eligible

for pre-packaged

insolvency

resolution

process.

section 3 1 or under sub-section ( 1) of section 54L," slrall

be inserted.

7. In section 34 of the principal Act, in sub-section

(1), after the words and figures, "under Chapter II", the

words, figures and letter "or for the pre-packaged

insolvency resolution process under Chapter III-A" shall

be inserted.

8. After Chapter III of the principal Act, the

following Chapter shall be inserted, namely:-

.CHAPTER III-A

PRE-PACKAGED INSOLVENCY RESOLUTION

PROCESS

54A.(1) An application-for initiating pre-packaged

insolvency resolution process may be made in respect of

a corporate debtor classified as a micro, small or

medium enterprise under sub-section (l) of section 7 of

the Micro, Small and Medium Enterprises Development

fuct,2006.

(2) Without prejudice to sub-section (1), an

application for initiating pre-packaged insolvency

resolution process may be made in respect of a

corporate debtor, who commits a default referred to in

section 4, subject to the following conditions, that-

(a) it has not undergone pre-packaged

insolvency resolution process or completed

corporate insolvency resolution process, as the case

may be, during the period of three years preceding

the initiation date;

(b) it is not undergoing a corporate insolvency

resolution process;

(c) no order requiring it to be liquidated is

passed under section 33;

(d) it is eligible to submit a resolution plan under

section 29A;

'

(e) the financial creditors of the corporate

debtor, not being its related parties, representing

such number and such manner as may be specified,

have proposed the name of the insolvency

professional to be appointed as resolution

professional for conducting the pre-packaged

27 of2OO6.

fu{qrd,ftqioro

insolvency resolution process of the corporate

debtor, and the financial creditors of the corporate

debtol, not being its related pafties, representing not

less than sixty-six per cent. in value of the financial

debt due to such creditors, have approved such

proposal in such form as may be specified:

Provided that where a corporate debtor does

not have any financial creditors, not being its

related parties, the proposal and approval under

this clause shall be provided by such persons as

may be specified;

(f) the majority of the directors or partners of the

corporate debtor, as the case may be, have made a

declaration, in such form as may be specified,

stating, inter alia, -

(i) that the corporate debtor shall file an

application for initiating pre-packaged

insolvency resolution process within a definite

time period not exceeding ninety days;

(ii) that the pre-packaged insolvency

resolution process is not being initiated to

defraud any person; and

(iii) the name of the insolvency professional

proposed and approved to be appointed as

resolution professional under clause (e);

(g) the members of the corporate debtor have

passed a special rqsolution, or at least three-fourth of

the total number of parbrers, as the case may be, of

the corporate debtor have passed a resolution,

approving the filing of an application for initiating

pre-packaged insolvency resolution process.

(3) The corporate debtor shall obtain an approval

from its financial creditors, not being its related parties,

representing not less than sixty-six per cent. in value of

the financial debt due to such creditors, for the filing of

an application for initiating pre-packaged insolvency

resolution process, in such form as may be specified:

Provided that where a corporate debtor does not

have any financial creditors, not being its related

parties, the approval under this sub-section shall be

provided by such persons as may be specified.

660 (28)

Bdrqrrq {rqq-d, fum t o qt zozt

Duties

of

resolution

professional

before initiation

of pre-packaged

insolvency

resolution

process.

(4) Prior to seeking apploval frorn financial

creditors under sub-section (3), the corporate debtor

shall provide such financial creditor-s with -

(a) the declaration referred to inclause (f) ofsub-

section (2);

(b) the special resolution or resolution referred

to in clause (g) ofsub-section (2);

(c) a base resolution plan which conforms to the

requirements referred to in section 54K, and such

other conditions as may be specified; and

(d) such other information and documents as

may be specified.

54B. (1) The insolvency professional, proposed to

be appointed as the resolution professional, shall have

the following duties commencing from the date of the

approval under clause (e) of sub-section (2) of section

54A, namely:-

(a) prepare a report in such form as may be

specified, confirming whether the corporate debtor

meets the requirements of section 54A, and the base

resolution plan conforms to the requirements

referred to in clause (c) ofsub-section ( ) ofsection

544;

(b) file such reports and other documents, with

the Board, as may be specified; and

(c) perform such other duties as may be

specified.

(2) The duties of the insolvency professional under

sub-section (l) shall cease, if, -

(a) the corporate debtor fails to file aL

application for initiating pre-packaged insolvency

resolution process within the time period as stated

under the declaration referred to in clause (f) of sub-

section (2) of section 54A; or

(b) the application for initiating pre-packaged

insolvency resolution process is admitted or rejected

by the Adjudicating Authority,

as the case may be.

udsllaqqqr,frqim lo

(3) The fees payable to the insolvency professional

in relation to the duties performed under sub-section (1)

shall be determined and bome in such manner as may be

specified and such fees shall form part of the pre-

packaged insolvency resolution process costs, if the

application for initiation of pre-packaged insolvency

resolution process is admitted.

54C. (1) Where a corporate debtor meets the

requirements of section 54A, a corporate applicant

thereof may file an application with the Adjudicating

Authority for initiating pre-packaged insolvency

resolution process.

(2) The application under sub-section (1) shall be

filed in such form, containing such particulars, in such

manner and accompanied -with such fee as may be

prescribed.

(3) The corporate applicant shall, along with the

application, furnish-

(a) the declaration, special resolution or

resolution, as the case may be, and the approval of

financial creditors for initiating pre-packaged

insolvency resolution process in terms of section

54A;

(b) the name and written consent, in such form

as may be specified, of the insolvency professional

proposed to be appointed as resolution professional,

as approved under clause (e) of sub-section (2) of

section 54A, and his report as referred to in clause

(a) of sub-section (l) of section 54B;

(c) a declaration regarding the existence of any

transactions of the corporate debtor that may be

within the scope of provisions in respect of

avoidance of transactions under Chapter III or

fraudulent or wrongful trading under Chapter VI, in

such form as may be specified;

(d) information relating to books of account of

the corporate debtor and such other documents

relating to such period as may be specified.

(4) The Adjudicating Authority shall, within a

period of fourteen days of the receipt of the application,

by an order,-

(a) admit the application, if it is complete; or

Appli

initiat

packa

insolv

resol

proces

660 (30)

Ei*grrd ttErrn, fttiq rr qr zoz t

Time-limit

completion

pre-packaged

insolvency

resolution

process.

Declaration

moratorium

public

announcement

during

pre-

packaged

insolvency

resolution

process.

lor

of

(b) reject the application, if it is incomplete:

Provided that the Adjudicating Authority

_ ^{shall, before rejecting} an apjilication, give notice

to the ^'applicant to rectift the defect in the

application within seven days from the date of

receipt of such notice fi.om the Adjudicating

Authority.

- ^{_(5) The pre-packaged insolvency resolution process}

shall commence from the date of admission of the

application under clause (a) ofsub-section (4).

54D. (1) The pre-packaged insolvency resolution

process shall be completed within a period of one

hundred and twenty days from the pre_packaged

insolvency commencement date.

(2). Without prejudice ro sub-section (l), the

resolution professional shall submit the resolution plan,

as approved by the committee of creditors, to- the

Adjudicating Authority under sub-section (4) or sub_

section (12), as the case may be, of section 54K, within

a period of ninety days from the pre_packaged

insolvency commencement date.

(3) Where no resolution plan is approved by the

committee of creditors within the time period referred to

in sub-section (2), the resolution professional shall, on

the day after the expiry of such time period, file an

application with the Adjudicating Authority for

termination of the pre-packaged insolvency resolution

process in such form and manner as may be specified.

54E. (l) The Adjudicating Authority shall, on the

pre-packaged insolvency commencement date, along

with the order of admission under section 54C _

of

and

(a) declare a moratorium for the purposes

referred to in sub-section (1) read with sub-seition

(3) of section 14, which shall, mutatis mutandis

apply, to the proceedings under this Chapter;

(b) appoint a resolution professional -