National Company Law Tribunal (NCLT)
News: NCLT approves Tata Steel takeover of Bhushan Energy.
Source: The Hindu
The National Company Law Tribunal (NCLT) is a quasi-judicial body in India that adjudicates issues relating to companies in India.
The Central Government has constituted National Company Law Tribunal (NCLT) under section 408 of the Companies Act, 2013 (18 of 2013) w.e.f. 01st June 2016.In the first phase the Ministry of Corporate Affairs have set up eleven Benches, one Principal Bench at New Delhi and one each Regional Benches at New Delhi, Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Cuttack, Guwahati,Jaipur, Hyderabad, Kolkata and Mumbai.
Powers of the National Company Law Tribunal
The NCLT has been given wide powers under the Companies Act, 2013 to adjudicate:
Cases initiated before the Company Law Board under the previous act (Companies Act, 1956).
All proceedings pending before any District court or High Court under the Old Act.
Cases pending before the Board for Industrial and Financial Reconstruction (BIFR), including those pending under the Sick Industrial Companies (Special Provisions) Act, 1985.
Appeals or any other proceedings pending before the Appellate Authority for Industrial and Financial Reconstruction (AAIFR).
Fresh proceedings pertaining to claims of oppression and mismanagement of a company, winding up of companies and all other powers prescribed under the Companies Act.
In addition, the recently enacted Insolvency and Bankruptcy Code, 2016 (Bankruptcy Code), also provides wide powers to the NCLT to adjudicate upon the ‘insolvency resolution process’ and liquidation of corporate debtors.
Benefits of NCLT and NCLAT
The formation of the NCLT and the NCLAT is a significant step towards attaining fast and efficient resolution of disputes relating to affairs of the Indian corporates.
It is expected that once all relevant provisions under the Companies Act and the Bankruptcy Code are made effective, these tribunals would provide holistic solutions to issues being faced by companies, including those of winding up, oppression/mismanagement and insolvency.
Being the sole forum dealing with company related disputes, these tribunals would also eliminate any scope for overlapping or conflicting rulings and minimize delays in resolution of disputes, thus, proving to be a boon for litigants.