National Company Law Tribunal (NCLT) - Powers, Functions and Mandate [UPSC Notes]

The National Company Law Tribunal or NCLT is a quasi-judicial body in India adjudicating issues concerning companies in the country. It was formed on June 1, 2016, as per the provisions of the Companies Act 2013 (Section 408) by the Indian government. In this article, you can read a brief about the National Company Law Tribunal for IAS Exam. This is an important topic in the UPSC Syllabus.

Know about important tribunals in India from the articles linked below:

What is National Company Law Tribunal?

NCLT was formed based on the recommendations of the Justice Eradi Committee that was related to insolvency and winding up of companies in India.

As of now, the Ministry of Corporate Affairs has 15 NCLT benches. Check the list of NCLT benches below:

Each Bench is headed by a President, 16 judicial members, and 9 technical members. The current and the first President of the NCLT is Justice MM Kumar.

Aspirants should also know that the National Company Law Appellate Tribunal (NCLAT) is a tribunal which was formed by the government under Section 410 of the Companies Act, 2013. NCLAT is responsible for hearing appeals from the orders of the National Company Law Tribunal.

Decisions taken by the NCLT can be appealed to the National Company Law Appellate Tribunal (NCLAT). The decisions of the NCLAT can be appealed to the Supreme Court on a point of law.

NCLT Functions

• All proceedings under the Companies Act such as arbitration, arrangements, compromise, reconstruction, and winding up of the company will be disposed of by the Tribunal.
• The NCLT is also the Adjudicating Authority for insolvency proceedings under the Insolvency and Bankruptcy Code, 2016.
• In the above-mentioned subjects, no civil court will have jurisdiction.
• The NCLT has the authority to dispose of cases pending before the Board for Industrial and Financial Reconstruction (BIFR), as well as, those pending under the Sick Industrial Companies (Special Provisions) Act, 1985.
• Also to take up those cases pending before the Appellate Authority for Industrial and Financial Reconstruction.
• It can also take up cases relating to the oppression and mismanagement of a company.

The topic, NCLT, is a part of the GS-II syllabus of the UPSC Exam. Candidates can find the complete GS 2 Structure, Strategy, and Syllabus in the linked article.

National Company Law Tribunal – UPSC Notes:- Download PDF Here

Multiple Choice Question

Consider the following statements

1. The National Company Law Tribunal or NCLT is a quasi-judicial body in India adjudicating issues concerning companies in the country. It was formed on June 1, 2016, as per the provisions of the Companies Act 2013 (Section 408)
2. A quasi-judicial body is a non-judicial body that can interpret the law. It is an entity such as an arbitrator or tribunal board, generally of a public administrative agency, which has powers and procedures resembling those of a court of law or judge, and which is obliged to objectively determine facts and draw conclusions from them so as to provide the basis of official action.
3. NCLT was formed based on the recommendations of the Justice Eradi Committee.
4. In the first phase, the Ministry of Corporate Affairs had set up eleven Benches, one Principal Bench in New Delhi and ten other Benches. These Benches were headed by the President and 16 Judicial Members and 09 Technical Members at different locations.

Choose the correct answer from the below-given options

1. Only Statements 1 and 4 are true.
2. Only Statements 1 and 3 are true
3. Only statements 2,3 and 4 are true.
4. All the above statements are true.

Answer: D

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