Sec 417 (1) The Central Government may, after consultation with the Chief Justice of India, remove

from office the President, Chairperson or any Member, who(a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (c) has become physically or mentally incapable of acting as such President, the Chairperson, or Member; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such President, the Chairperson or Member; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest: Provided that the President, the Chairperson or the Member shall not be removed on any of the ground specified in clause (b) to (e) without giving him a reasonable opportunity of being heard. (2) Without prejudice to the provision of sub-section (1). The President, the Chairperson or the Member shall not be removed from his office except by an order made by the Central Government on the ground of proved misbehavior or incapacity after an inquiry made by a judge of the Supreme Court nominated by the Chief justice of India on a reference made to him by the Central Government in which such President, the Chairperson or Member had been informed of the charge against him and given a reasonable opportunity of being heard. (3) The Central Government may, with the concurrence of the Chief Justice of India, suspend from office, the President, the Chairperson or Member in respect of whom reference has been made to the judge of the Supreme Court under sub-section (2) until the Central Government has passed orders on receipt of the report of the Judge of the Supreme Court on such reference. (4) The Central Government shall, after consultation with the Supreme Court, make rules to regulate the procedure for the inquiry on the ground of proved misbehavior or incapacity referred to in sub-section (2). Companies (Second Amendment) Act, 2002- Section 10FJ, inserted by the Companies (Amendment) Act, 2002 deals with the removal and suspension of the President of Member. Commentary on Clauses- The Central Government may, in consultation with the Chief Justice of India, remove from office the President or any Member of the Tribunal who has been adjudged an insolvent, convicted of an offence, become physically or mentally incapable, has acquired financial or other interest prejudicial to his functions as President or Member. The Central Government shall also have power to remove the President or a Member on the ground of proved misbehavior or incapacity after an inquiry made in this behalf. (Clause 6 of the Companies (Amendment) Bill 2001).

Scope of the Section- The President or any member of the Tribunal can be removed by the Central Government with the consultation of the Chief Justice of India. Reasons for Removal- The President or any member may be removed for any, of the below mentioned reasons, i.e. when he i. ii. iii. iv. v. has been adjudged an insolvent; or has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or has become physically or mentally incapable of acting as such President or Member of the Tribunal; or has acquired such financial or other interest as is likely to affect prejudicially his functions as such President or Member of the Tribunal; or has so abused his position as to render his continuance in office prejudicial to the public interest:

However, in all cases, except the first he will be given reasonable opportunity of being heard. Investigation of Charge- The President or any Member can be removed by the Central Government on the charges of misbehavior or incapacity only after an inquiry by a Supreme Court Judge who will intimate the charges and also give reasonable opportunity of being heard. Central Government, may notify rules to regulate the procedure for investigation. Suspension- The President or any member against whom a reference has been made to the Judge may be suspended by the Central Government pending receipt of report on reference and further orders of the Central Government. Staff of Tribunal and Appellate Tribunal 418. (1.) The Central Government shall, in consultation with the Tribunal and the Appellate Tribunal, provide the Tribunal and the Appellate Tribunal, as the case may be, with such officers and other employees as may necessary for the exercise of the powers and discharge of the functions of the Tribunal and the Appellate Tribunal. (2) The officer and other employee of the Tribunal and the Appellate Tribunal shall discharge their function under the general superintendence and control of the President, or as the case may be, the Chairperson, or any other Member to whom powers for exercising such superintendence and control are delegated by him. (3) The Salaries and allowance and other condition of service of the officers and other employees of the Tribunal and the Appellate Tribunal shall be such as may be prescribed. Companies (Second Amendment) Act, 2002- Section 10 FK, inserted by the Companies (Second Amendment) Act, 2002 provides for the officer and employees of the Tribunal.

Commentary on Clauses- The Salaries and allowance and other conditions of service of office and other employees of the Tribunal shall be such as may be prescribed by the Central Government, (Clause 6 of the Companies (Amendment) Bill, 2001) Scope of the Section- Section 10FK of the Companies Act, 1956 empowers the Central Government to appoint officer and employees of the tribunal. Such officer and employees will work under the general superintendence of Member Administration, designated under Section 10FF. Salaries and Allowance will be prescribed by the Central Government.