NATIONAL COMPANY LAW

TRIBUNAL
AND
NATIONAL COMPANY LAW
APPELLANT TRIBUNAL

SEJAL CHAUDHARY
MU20BALLB004
7TH SEMESTER
Introduction
 The National Company Law Tribunal (NCLT) is a specialized quasi-judicial body in
India.
Under the Companies Act 2013, it was established to handle matters related to
corporate disputes and insolvency proceedings.
NCLT has jurisdiction over cases involving companies, limited liability partnerships,
and other entities specified under the Companies Act.
It has benches located in various cities across India to facilitate accessibility.
NCLT is responsible for resolving disputes related to company law, mergers,
amalgamations, and company winding up.
It plays a crucial role in promoting efficient and timely resolution of corporate
disputes and insolvency matters in the country.
• On June 1, 2016, the National Company Law Appellate Tribunal (NCLAT) was
established.
• It was established by Section 410 of the Companies Act of 2013. Its purpose is to
consider appeals from the National Company Law Tribunal(s) (NCLT) decisions.
• NCLAT also serves as the Appellate Tribunal for appeals against NCLT(s) decisions.
As of December 1, 2016, it was created under Section 61 of the Insolvency and
Bankruptcy Code, 2016. (IBC).
• Section 410 of the Companies Act of 2013 established the NCLAT. Its mission is to
consider appeals from the National Company Law Tribunal (NCLT) decisions.
• Any individual who is dissatisfied with an NCLAT order may seek an appeal with
the Supreme Court.
Functions of the National Company Law Tribunal (NCLT)

 The function of NCLT entails jurisdiction over cases previously handled by the Board for
Industrial and Financial Reconstruction (BIFR) and cases under the Sick Industrial
Companies(Special Provisions) Act of 1985.
 It can relieve investors affected by unlawful conduct committed by corporate management or
affiliated consultants and advisers.
 Depositors who have harmed their rights can seek recourse through class lawsuits against the
company.
 NCLT can instruct the company to reopen or modify its financial statements, but reopening
accounts is not permitted.
 The company's director can apply to the Tribunal to modify financial statements.
 NCLT has the authority to conduct investigations worldwide and assist foreign investigation
agencies and courts.
 Provisions are in place to support the inquiry processes of investigation agencies and courts from
other countries.
Powers of National Company Law Tribunal
•It can take over the cases pending before the Appellate Authority for Industrial and Financial
Reconstruction.
•It can also take on cases of corporate persecutors and mismanagement.
•It has the authority to request the aid of the Chief Metropolitan Magistrate.
•It can deregister companies.
•It can order de-registration of businesses in specific instances where company registration is obtained
illegally or incorrectly.
•It has the power to hear complaints against businesses’ refusals to transfer securities and to correct the
register of members.
•It gives protection to diverse stakeholders’ interests, particularly non-promoter shareholders and
depositors.
Benefits of the National Company Law Tribunal

•The NCLT is a specialist court that hears cases involving Corporates or Indian-registered
businesses.
•This will be a Tribunal for Corporate Members.
•The NCLT will minimize the number of lawsuits filed in various forums and courts.
•NCLT has various branches and may offer justice at a distance.
•When making decisions, the NCLT includes both judicial and technical experts.
•The time it takes to dissolve a corporation is decreased.
•Cases that are resolved quickly will assist in the number of cases.
•The NCLT and NCLAT have exclusive jurisdiction.
NCLAT Recent Developments

•The NCLAT decided 2016 that Cyrus Pallonji Mistry’s removal as Executive Chairman of Tata Sons was
illegal.
•The Tribunal has overturned a July 2017 judgment of the Mumbai bench of the National Company Law
Tribunal (NCLT) that supported Mistry’s dismissal.
•The NCLAT also ruled that the Registrar of Companies’ change of ‘Tata Sons Limited’ from ‘Public
Company’ to ‘Private Company’ was unlawful.
•It stated that the decision to go private was ‘prejudicial’ and ‘oppressive’ to the minority shareholders.
•The NCLAT ruling will empower minority shareholders, and Independent Directors will be forced to take
their concerns more seriously.
CONCLUSION:
The judicial system is long and a lengthy process and for a suit to get its order it
takes years whereas the tribunals follow a very quick process and gives its decision
for the dispute. Hence the tribunal may be better at facts finding, using flexible
standards and implementing discretionary powers as compared to the traditional
courts. At last it not only reduces the burden of the high court it also helps in
providing quicker justice.
Thank you

SEJAL CHAUDHARY

MU20BALLB004
7 TH SEMESTER