National Company Law Tribunal (NCLT)
The National Company Law Tribunal (NCLT) is a quasi-judicial body in India that was
established under the Companies Act of 2013 to handle matters related to corporate disputes
and insolvency proceedings. NCLT plays a crucial role in the country's legal and corporate
governance framework by providing a specialized forum for resolving issues concerning
companies and their stakeholders. Here are some key aspects of NCLT:
1. Jurisdiction and Functions :
• NCLT has jurisdiction over a wide range of matters, including company law cases,
mergers and acquisitions, insolvency and bankruptcy proceedings, and class-action
suits.
• It also deals with cases related to the oppression and mismanagement of companies, as
well as cases involving compromises and arrangements between companies and their
creditors or shareholders.
2. Bench Structure :
• NCLT is organized into multiple benches across India, with each bench typically having
judicial members and technical members. These members, who are typically retired
judges and experts in fields like finance, law, and accounting, preside over cases.
3. Corporate Insolvency Resolution Process (CIRP) :
• One of the significant functions of NCLT is to oversee the Corporate Insolvency
Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) of 2016.
It is the forum where insolvency cases are filed, and resolution or liquidation
proceedings are initiated.
• During CIRP, NCLT plays a pivotal role in approving or rejecting resolution plans
submitted by potential buyers or creditors. It ensures that the process is carried out
transparently and in the best interests of all stakeholders involved.
4. Appeals :
• Decisions made by NCLT can be appealed to the National Company Law Appellate
Tribunal (NCLAT), which is the appellate authority for matters arising from NCLT's
decisions.
5. Mediation and Conciliation :
• NCLT encourages mediation and conciliation as alternative dispute resolution methods
to expedite the resolution of corporate disputes.
6. Speedy Disposal :
• One of the primary objectives of NCLT is to expedite the disposal of corporate cases
and insolvency proceedings, thereby reducing the burden on traditional courts and
ensuring quicker resolution.
7. Transparency and Accountability :
• NCLT operates with a focus on transparency, fairness, and accountability, ensuring that
the interests of all stakeholders, including creditors, shareholders, and employees, are
considered in its decisions.
8. Evolution and Amendments :
• The NCLT and its procedures have evolved over time, with amendments and changes
in response to evolving corporate and legal landscapes.
NCLT has become a vital institution for resolving complex corporate disputes, promoting
corporate governance, and facilitating the revival of financially distressed companies. Its role
in handling insolvency cases has been particularly significant in addressing the issue of nonperforming assets (NPAs) in India's banking and financial sectors. Overall, NCLT plays a
critical role in maintaining the stability and integrity of India's corporate sector