NCLT National Company Law Tribunal Advocate Lawyers

NCLT National Company Law Tribunal Advocate Lawyers

The National Company Law Tribunal (NCLT) is a quasi-judicial body established under the Companies Act, 2013 to deal with matters related to companies in India. The NCLT was constituted on June 1, 2016, replacing the Company Law Board (CLB) and the Board for Industrial and Financial Reconstruction (BIFR). It is a specialized tribunal that has exclusive jurisdiction over company law matters and has been given extensive powers to deal with issues related to corporate governance and insolvency.

The NCLT has its principal bench in New Delhi and has 15 benches located in major cities across India. The tribunal is headed by a President and comprises judicial and technical members appointed by the central government. The President and Members of the NCLT are selected based on their experience and knowledge in the field of law, finance, economics, accountancy, management or administration.

The NCLT has been given a wide range of powers under the Companies Act, 2013. It has jurisdiction over several types of cases, including company law matters, mergers and acquisitions, insolvency and bankruptcy proceedings, and class action suits. The NCLT is also empowered to take disciplinary action against companies and their directors for non-compliance with the Companies Act, 2013 and other corporate laws.

One of the most important functions of the NCLT is to oversee the insolvency and bankruptcy process of companies. The NCLT plays a crucial role in resolving insolvency and bankruptcy cases by appointing an Insolvency Resolution Professional (IRP) who takes charge of the management of the company during the insolvency process. The IRP is responsible for preparing a resolution plan for the company, which is then approved by the NCLT. If the resolution plan is not successful, the NCLT may order the liquidation of the company.

The NCLT has also been given the power to initiate class action suits on behalf of shareholders or depositors of a company who have been affected by its actions. This power is particularly significant in cases where a large number of shareholders or depositors have been affected, as it enables them to seek redressal through a single legal action.

In addition to its powers under the Companies Act, 2013, the NCLT has also been given certain powers under other legislation such as the Insolvency and Bankruptcy Code, 2016, the Competition Act, 2002 and the Securities and Exchange Board of India Act, 1992.

In conclusion, the NCLT is a crucial institution in the Indian corporate governance system. Its jurisdiction over company law matters and insolvency proceedings has significantly improved the ease of doing business in India by providing an efficient and transparent dispute resolution mechanism for companies. The NCLT has been successful in resolving several high-profile insolvency cases and has played a key role in promoting investor confidence in the Indian corporate sector.