Section 224(5) of the Companies Act, 2013 does not gives the power to NCLT/ Tribunal to appoint a Nominee Director – Union of India Vs. Carnoustie Management (I) Pvt. Ltd. and Ors. – NCLT Principal Bench
December 16, 2024
Hon’ble NCLT Principal Bench held that it is amply clear the Section 224(5) of the Companies Act, 2013 does not gives the power to this Tribunal to appoint a nominee director as prayed by the Applicant in this application. It only speaks about passing of appropriate orders with regard to disgorgement of such asset, property, or cash, as the case may be, and also for holding such director, key managerial personnel, officer or other person liable personally without any limitation of liability. It is also well settled that Sec 224(5) of the Companies Act does not whisper about the appointment of Nominee Director. It is only under Sec 241 and 242 and under the statutory provisions i.e. Sec 161 of the Act, under which the said appointment can be done.