Topic 54 Special Courts Section67A

Module Overview

The LLP (Amendment) Act, 2021 inserted Section 67A creating Special Courts to try LLP offences. Prior to this, LLP criminal matters went to ordinary criminal courts. This topic covers the establishment, composition, jurisdiction, summary trial power, the appeal mechanism to High Courts, and the critical distinction from NCLAT jurisdiction.

Section 67A(1) — Establishment

The Central Government may, for the purpose of providing speedy trial of offences under this Act, by notification, establish or designate as many Special Courts as may be necessary.

Section 67A(2) — Composition

A Special Court shall consist of a single judge who shall be appointed by the Central Government with the concurrence of the Chief Justice of the High Court within whose jurisdiction the Special Court is to function.

Single Judge

Composition

Metro Magistrate

Metro cities

JMFC

Elsewhere

CG + CJ concurrence

Appointment

Feature

Details

Jurisdiction

Offences under LLP Act that remain criminal after 2021 decriminalisation (Section 30(2), Section 36 false statements, obstruction)

Summary trial power

Section 67A(4): offences punishable with up to 2 years imprisonment may be tried summarily — faster disposal

Prospective application

Jurisdiction over offences committed after commencement of Section 67A (April 1, 2022)

Pre-2022 offences

Tried by ordinary Magistrate's court — prospective jurisdiction only

CRITICAL: Criminal Appeals go to HIGH COURT — NOT NCLAT

CIVIL matters (winding up, investigation, compromise — NCLT orders): Appeal → NCLAT within 60 + 60 days (Section 72).

CRIMINAL matters (Special Court orders for LLP Act offences): Appeal → HIGH COURT — NOT NCLAT. This is a critical distinction for examination answers.

Section 72 — Appeal to Appellate Tribunal (Post-2021 Amendment)

Any person aggrieved by an order of the Tribunal under this Act may prefer an appeal to the Appellate Tribunal within a period of sixty days from the date on which a copy of the order is made available to the person aggrieved. Provided that the Appellate Tribunal may, if satisfied that the appellant was prevented by sufficient cause, allow the appeal within a further period not exceeding sixty days. Provided also that no appeal shall lie against an order made by the Tribunal with the consent of the parties.

Order Type

Original Forum

First Appeal

Notes

Winding-up order

NCLT

NCLAT (60+60 days)

No appeal on consent orders

Investigation civil order

NCLT

NCLAT (60+60 days)

—

Civil penalty (non-filing)

Registrar/Adj. Officer

Regional Director (MCA)

Not NCLT/NCLAT

Criminal offence conviction

Special Court (S.67A)

HIGH COURT

NOT NCLAT

NCLT consent order

NCLT

NOT APPEALABLE

2021 Amendment exclusion

Strike-off by Registrar

Registrar

NCLT (restoration application)

Then NCLAT if needed

⚖ State of Maharashtra v. Rajiv Jain Bombay HC (2022)

Held: The High Court held that Section 67A's Special Courts have jurisdiction only over offences committed after April 1, 2022. Pre-April 2022 LLP Act offences remain triable by ordinary Magistrate courts. Prospective application of procedural jurisdiction is a well-established principle of criminal law.

Principle: Special Courts under Section 67A have prospective jurisdiction — offences before April 1, 2022 go to regular criminal courts.

📌 EXAM TIP: Special Courts — exam essentials: (1) Section 67A — inserted by 2021 Amendment; (2) Single judge — Metro Magistrate (cities) or JMFC; (3) CG appoints with concurrence of CJ of HC; (4) Criminal appeals from Special Court → HIGH COURT (NOT NCLAT); (5) Civil NCLT orders → NCLAT within 60+60 days; (6) Consent orders NOT appealable; (7) Prospective: offences after April 1, 2022 only.

Key Point

Core Content

Section 67A

Special Courts for LLP criminal offences — 2021 Amendment

Composition

Single judge: Metro Magistrate (cities) or JMFC (elsewhere)

Criminal appeal

Special Court → HIGH COURT (NOT NCLAT)

Civil appeal (NCLT)

NCLT → NCLAT within 60 + 60 days

Consent order

NCLT consent order NOT appealable — 2021 Amendment

Prospective

Jurisdiction from April 1, 2022 only