We as human beings are becoming more and more overzealous in our day to day lives. With the development of technology and the so-called sophistication of the life. To meet their self-requirements, they are indulging in cheating, malpractice and are following shortcuts in life to make more money. To check the mismanagement in the functioning of a company, the Central government of India has set up a tribunal called the National Company Law Tribunal.
What is National Company Law Tribunal?
The National Company Law Tribunal or NCLT is a quasi-judiciary body established in India, that makes a formal judgment on a disputed matter, relating to the companies issues in India. It was set up to govern the companies registered in India. It is a successor to the Company Law Board. The government has appointed 11 benches for NCLT. Selection of members is done by a selection committee headed by the Secretary of the Corporate Affairs Ministry (MCA).
When was the National Company Law Tribunal Established?
The National Company Law Tribunal was established by the Central Government in 2016 under Section 408 of the Companies Act of 2013, and it was constituted on June 1, 2016.
Scope of National Company Law Tribunal
The National Company Law Tribunal consolidates the corporate jurisdiction of the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), the Company Law Board, Board of Industrial and Financial Reconstruction (BIFR) and the powers relating to the winding up of the company and other provisions vested in High Courts.
The Company Law Board which was set up under the Companies Act, 1956 stands dissolved with the establishment of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).
Advantages of National Company Law Tribunal
The following are the advantages of National Company Law Tribunal:
• It reduces the multiplicity of litigation before different forums and courts.
• It is a specialized court, meant only for corporates - for the companies registered in India.
• It consists of both the judiciary members as well as technical members while deciding on the matters.
• It has many branches spread across India.
• It will be able to provide justice at a close range.
• The time consumed for the winding up of a company is reduced.
• It disposes of cases speedily which will further help to reduce the total number of cases
• Both NCLT and NCLAT have exclusive jurisdiction.
Jurisdiction of National Company Law Tribunal
|NCLT, Principal Bench and NCLT, New Delhi Bench||Union Territory of Delhi|
|State of Rajasthan|
|State of Haryana|
|NCLT, Ahmedabad Bench||State of Gujarat|
|State of Madhya Pradesh|
|Union Territory of Dadra and Nagar Haveli|
|Union Territory of Diu & Daman|
|NCLT, Allahabad Bench||State of Uttar Pradesh|
|State of Uttrakhand|
|NCLT, Bengaluru Bench||State of Karnataka|
|NCLT, Chandigarh Bench||State of Himachal Pradesh|
|State of Jammu & Kashmir|
|State of Punjab|
|Union Territory of Chandigarh|
|NCLT, Chennai Bench||State of Kerala|
|State of Tamil Nadu|
|Union Territory of Lakshadweep|
|Union Territory of Puducherry|
|NCLT, Guwahati Bench||State of Arunachal Pradesh|
|State of Assam|
|State of Manipur|
|State of Mizoram|
|State of Meghalaya|
|State of Nagaland|
|State of Sikkim|
|State of Tripura|
|NCLT, Hyderabad Bench||State of Andhra Pradesh|
|State of Telangana|
|NCLT, Kolkata Bench||State of Bihar|
|State of Jharkhand|
|State of Odisha|
|State of West Bengal|
|Union Territory of Andaman & Nicobar Island|
|NCLT, Mumbai Bench||State of Chhattisgarh|
|State of Maharashtra|
|State of Goa|
Powers of National Company Law Tribunal
• To declare the liability of members unlimited.
• De-registration of companies
• To seek assistance of Chief Metropolitan Magistrate
• Remedy for oppression and mismanagement
• To freeze assets of the company
• To investigate the ownership of the company
• To restrict any securities related to the company
• Conversion of Public Limited Company into Private Limited Company
• To alter the financial year of a company, registered in India
• To investigate or for initiating investigation proceedings
Procedure for Appeals
The Tribunal and Appellate Tribunal follows the rules laid down in the Code of Civil procedure, and it is also guided by the principles of the natural justice, subject to the other provisions of the Act and any different rules made by the Central Government. Both Tribunal and Appellate Tribunal has the power to control its procedure. No other civil court has the jurisdiction to consider any case concerning any matter which the Tribunal and Appellate Tribunal is empowered to decide.
Any appeal on the order of Tribunal can be raised at the National Company Law Appellate Tribunal. Appeals can be made within 45 days from the date of the decision of the Tribunal. Any person or party aggrieved by the Tribunal order can appeal to the Appellate Tribunal. The Appellate Tribunal has to dispose the appeal within six months from the date of the receipt of the appeal.
Recently the National Company Law Tribunal (NCLT) has allowed the Corporate Affairs Ministry (MCA) to freeze assets of 64 respondents relating to the Nirav Modi case.