National Company Law Tribunal (NCLT)

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.

What is NCLT?

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.

When was NCLT Formed?

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.

What Does NCLT Do?

While the functions of National Company Law Tribunal aren't limited to the below mentioned, these are the most important ones of all.

Deregistration or Dissolving of Companies

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.

Issues Regarding Rejection of Transmission or Transfer of Shares

National Company Law Tribunal has the authority to regulate the rejection of companies in transferring shares and securities.

Depositor Claims Against Companies

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.

Investigative Authorization Against Company Affairs

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.

Freezing and/or Investigation of Company Assets

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.

Get the latest NCLT news and videos on NCLT cause list, orders, and court case discussions on BTVI.

NCLT Latest News
NCLT to initiate insolvency proceedings against Emaar MGF after home buyers file pleas
PTI | Jan 31 2019

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".

Here Are The News And Views That Will Prepare You For Today's Trading Day
BTVI WEBDESK | Jan 30 2019

NCLT rejects Essar promoter's bid in Essar Steel as NCLT Ahmedabad bench will hear ArcelorMittal's resolution plan in the case today.

NCLT accepts Rs 2 cr as EMD from CFM ARC in Reid & Taylor case
PTI | Jan 17 2019

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 Arun Jaitley says NCLT helped creditors recover Rs 800 billion by resolving 66 cases
PTI | Jan 03 2019

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.

GAIL, GETCO move NCLT seeking rejection of ArcelorMittal bid for Essar Steel
PTI | Nov 19 2018

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 net down, hopes to recover Rs 850 crore from NCLT accounts
IANS | Nov 09 2018

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.

Indian Q2 profit slips 67 percent at Rs 150 crore
PTI | Nov 09 2018

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.

Multiple options explored; selling IL&FS as going concern best case scenario: Srinivas
PTI | Nov 05 2018

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.

GN Bajpai resigns from IL&FS board
PTI | Nov 01 2018

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.

Arvind Ltd Q2 net up 16.4 per cent to Rs 75.08 cr
PTI | Nov 01 2018

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.