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.
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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:
National Company Law Tribunal – Benches
|Name of NCLT Bench – Location||Jurisdiction of the NCLT Bench|
|NCLT Principal Bench & New Delhi Bench – New Delhi||Delhi|
|NCLT Ahmedabad Bench||
|NCLT Allahabad Bench||
|NCLT Amaravati Bench||Andhra Pradesh|
|NCLT Bengaluru Bench.||Karnataka|
|NCLT Chandigarh Bench||
|NCLT Chennai Bench||
|NCLT Cuttack Bench||
|NCLT Guwahati Bench||
|NCLT Telangana Bench||Telangana|
|NCLT Indore Bench||Madhya Pradesh|
|NCLT Jaipur Bench||Rajasthan|
|NCLT Kochi Bench||
|NCLT Kolkata Bench||
|NCLT Mumbai Bench||
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.
- 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.
Multiple Choice Question
Consider the following statements
- 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)
- A quasi-judicial body is a non-judicial body which can interpret 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.
- Tribunals were constituted with the objective of delivering speedy, inexpensive and decentralized adjudication of disputes in various matters. Tribunals are not originally a part of the Constitution of India. They were introduced in 1985.
- Income Tax Appellate Tribunal (ITAT) was established in 1941. The orders passed by this tribunal are final and an appeal lies to the High Court only if a substantial question of law arises for determination.
Choose the correct answer from the below-given options
- Only Statements 1 and 4 are true.
- Only Statements 1 and 3 are true
- Only statements 2,3 and 4 are true.
- All the above statements are true.