In this article, you can read a brief about the National Company Law Tribunal for UPSC exam. This is an important topic in the UPSC Syllabus.
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.
It 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 established 11 Benches of the tribunal with the Principal Bench at New Delhi. The other 12 Benches are at Delhi, Bangalore, Ahmedabad, Allahabad, Guwahati, Chennai, Chandigarh, Kolkata, Mumbai, Jaipur, Kochi and Hyderabad. There are two more proposed Benches to be established at Indore and Amaravathi.
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.
- All proceedings under the Companies Act such as arbitration, arrangements, compromise, reconstruction and winding up of the company will be disposed off 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.
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.