56. Consider the following statement about National Company Law Tribunal
1. It is a quasi-judicial body established under Companies act 2013 to adjudicate issues pertaining to companies in India
2. It was established on the recommendation of Eradi committee on law related to insolvency and winding up of companies
3. It has power to deal with cases related to revival of sick companies, mismanagement but has no power in regard to winding up of companies
Which of the above statement(s) is/are correct?
56. Consider the following statement about National Company Law Tribunal
1. It is a quasi-judicial body established under Companies act 2013 to adjudicate issues pertaining to companies in India
2. It was established on the recommendation of Eradi committee on law related to insolvency and winding up of companies
3. It has power to deal with cases related to revival of sick companies, mismanagement but has no power in regard to winding up of companies
Which of the above statement(s) is/are correct?
The correct option is A Only 1 and 2
NCLT has the same powers as assigned to the erstwhile Company Law Board (which are mostly related to dealing with operation and mismanagement), Board for Industrial and Financial Reconstruction (BIFR) (revival of sick companies) and powers related to winding up of companies (which was available only with the High Courts).The NCLT has the power under the Companies Act to adjudicate proceedings:
1. Initiated before the Company Law Board under the previous act (the Companies Act 1956);
2. Pending before the Board for Industrial and Financial Reconstruction (BIFR), including those pending under the Sick Industrial Companies (Special Provisions) Act, 1985;
3. Pending before the Appellate Authority for Industrial and Financial Reconstruction; and
4. Pertaining to claims of operation and mismanagement of a company, winding up of companies and all other powers prescribed under the Companies Act.
5. Decisions of the NCLT may be appealed to the National Company Law Appellate Tribunal. The decisions of NCLT may be appealed to the Supreme Court of India.
NCLT has the same powers as assigned to the erstwhile Company Law Board (which are mostly related to dealing with operation and mismanagement), Board for Industrial and Financial Reconstruction (BIFR) (revival of sick companies) and powers related to winding up of companies (which was available only with the High Courts).The NCLT has the power under the Companies Act to adjudicate proceedings:
1. Initiated before the Company Law Board under the previous act (the Companies Act 1956);
2. Pending before the Board for Industrial and Financial Reconstruction (BIFR), including those pending under the Sick Industrial Companies (Special Provisions) Act, 1985;
3. Pending before the Appellate Authority for Industrial and Financial Reconstruction; and
4. Pertaining to claims of operation and mismanagement of a company, winding up of companies and all other powers prescribed under the Companies Act.
5. Decisions of the NCLT may be appealed to the National Company Law Appellate Tribunal. The decisions of NCLT may be appealed to the Supreme Court of India.
