The NCLT, which stands for National Company Law Tribunal is a non-judicial Government body established to address and resolve issues related to companies in India. The NCLT solves company related disputes through a panel of judges set up in different cities in India.
The National Company Law Tribunal (full form NCLT) was formed in order to address the corporate issues regarding Indian companies. The Central Government of India set up a committee of judges in various regions all over India to resolve the disputes over misconduct in the functioning of a company.
NCLT is a quasi-judicial body, which means a non-judicial body which can interpret the law. It is credited with the responsibility of providing formal judgments on a matter of conflict.
NCLT is a successor of the Company Law Board. There are total 13 NCLT benches established in India, with two in Delhi and one each in Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Kochi, Kolkata, and Mumbai. The members of these benches are selected by a committee led by the Secretary of the Ministry of Corporate Affairs.
The National Company Law Tribunal was formed under Section 408 of the Companies Act, 2013 and the tribunals have been effective from 1 June 2016. The NCLT was set up on the recommendations of the Justice Eradi Committee. Originally, was to be introduced in the Indian constitutional system in 2002 under the Companies Act of 1956.
However, the litigation filed against the constitutional validity of NCLT lasted more than 10 years, forcing it to be registered in 2016, under the Companies Act of 2013.
While the functions of National Company Law Tribunal aren't limited to the below mentioned, these are the most important ones of all.
NCLT can question the legitimacy of companies which indulge in malpractices or are an accused party in mismanagement. It is powered with the right to cancel the registration of a company or even dissolve a company in extreme cases.
National Company Law Tribunal has the authority to regulate the rejection of companies in transferring shares and securities.
Depositors troubled by the unrighteous behaviour of companies can also file a complaint to the NCLT panel which will then be evaluated in a session by the NCLT bench.
NCLT can also investigate a company's transactions and operations. In case, a person not related to the concerned company is able to provide legally acceptable proofs regarding mismanagement or malfunctioning in a company can also be considered as a basis for starting an investigation.
The National Company Law Tribunal has the rights to freeze the assets of a company or even use them at a later point of time when the concerned organization is under scrutiny, such investigation could also be ordered on the request of other parties in specialized conditions.
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The tribunal has also directed the company, its erstwhile director, promoters or any other person associated with the Emaar MGF Land to extend every assistance and cooperation to the interim resolution professional".
NCLT rejects Essar promoter's bid in Essar Steel as NCLT Ahmedabad bench will hear ArcelorMittal's resolution plan in the case today.
The Mumbai NCLT bench headed by Bhaskara Pantula Mohan and V Nallasenapathy said CFM ARC CEO S V Shah can deposit the balance EMD of Rs 3 crore while submitting the resolution plan in two weeks.
FM Jaitley accusing Congress of leaving behind a legacy of an "anachronic system" of resolving commercial insolvency, says the NDA govt acted swiftly to recover the non-performing loans and legislated the insolvency and bankruptcy code.
State-run gas utility GAIL India and GETCO have moved the National Company Law Tribunal seeking rejection of ArcelorMittal's Rs 42,000-crore takeover plan for Essar Steel, saying operational creditors have been left out in the proposal.
Indian Bank hopes to recover about Rs 850 crore over the next two quarters out of loan accounts referred to National Company Law Tribunal (NCLT), said a top bank official here.
State-owned Indian Bank reported a 66.7 per cent dip in its net profit at Rs 150.1 crore for the second quarter ended September on account of increase in bad loans.
The government is mulling the sale of crisis-hit Infrastructure Leasing and Financial Services (IL&FS) as one of the options to resolve issues facing it, Corporate Affairs Secretary Injeti Srinivas said.
Debt-ridden Infrastructure Leasing & Financial Services (IL&FS) said GN Bajpai has resigned from the company's newly-appointed board, citing personal reasons. His resignation will be effective October 30.
Textile and apparel player Arvind Ltd on Thursday reported a 16.38 per cent increase in its consolidated net profit to Rs 75.08 crore for the second quarter ended September 2018.