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The National Company Tribunal Law was set up by the Central Government of India. This was established to check the malpractices and mismanagement that are occurring in the Indian companies. In our day-to-day lives, people are becoming selfish in such a way that is to fulfil their self-requirement, they do not think twice about any kind of malpractices like cheating, or thieving and are following up some shortcuts and wrong ways to make more money easily.
National Company Law Tribunal – Illustration
The National Company Law Tribunal is a quasi-judiciary body that was set up in India by the Central Government for the protection of the Indian companies that are registered and deals with the companies’ issues, established in the year 2016 under the Section 408 of the Companies Act of 2013 and on 1st June 2016, this law was constituted. The establishment of the law is based on the recommendation or advice of the V. Balakrishna Eradi Committee on the law relating to insolvency. Benches in 16 states under different jurisdictions are appointed by the central government for National Company Law Tribunal. The selection committee guided by the Secretary of Corporate Affairs Ministry selects the members for this quasi-judiciary body. All the activities under the Companies Act that involves activities relating to the arrangements, shutting down of companies, compromise, and arbitration must be thrown away by the NCLT (National Company Law Tribunal). The benches of the National Company Law Tribunal are headed by a retired judicial member or a High Court judge who is already serving and a Technical member from the ICLS (Indian Corporate Law Service) Cadre.
Jurisdiction under National Company Law Tribunal
National Company Law Tribunal (NCLT) Benches | Jurisdiction |
National Company Law Tribunal, Bengaluru Bench | State – Karnataka |
National Company Law Tribunal, Allahabad Bench | State – Uttar Pradesh |
National Company Law Tribunal, Guwahati Bench | State – Arunachal Pradesh State – Mizoram State – Sikkim State – Assam State – Nagaland State – Tripura State – Meghalaya |
National Company Law Tribunal, Principal Bench National Company Law Tribunal, Delhi Bench | Union territories of Delhi |
National Company Law Tribunal, Kolkata Branch | State – West Bengal State – Sikkim State – Bihar State – Jharkhand Union Territory of Nicobar and Andaman Islands |
National Company Law Tribunal, Chennai Bench | State – Tamil Nadu Union Territory of Pondicherry Union Territory of Lakshadweep |
National Company Law Tribunal, Hyderabad Bench | State – Andhra Pradesh |
National Company Law Tribunal, Chandigarh Bench | State – Haryana State- Punjab State – Jammu, and Kashmir State – Himachal Pradesh Union Territory of Chandigarh |
National Company Law Tribunal, Ahmedabad Bench | State – Gujarat Union Territory of Daman and Diu Union Territory of Dadra and Nagar Haveli |
National Company Law Tribunal, Cuttack Bench | State – Orissa |
National Company Law Tribunal, Amaravati Bench | State – Andhra Pradesh |
National Company Law Tribunal, Indore Bench | State – Madhya Pradesh |
National Company Law Tribunal, Mumbai Bench | State – Goa State – Maharashtra |
National Company Law Tribunal, Kochi Bench | State – Kerala Union Territory of Laksha |
Functions of National Company Law Tribunal
The NCLT has power under the Companies Act to protect and solve the issues of Indian companies to adjudicate proceedings:
- Under the previous Act i.e. Companies Act 1956, the National Company Law Tribunal was initiated before the (CBL) Company Law Board,
- Pending before the Appellate Authority for Financial Reconstruction and Industrial Reconstruction,
- Pending before the board for financial and industrial reconstruction, (consisting of those that are pending under the Sick Industrial Companies (SIC) Act, 1985,
- To perform all the powers listed under the Companies Act of 2013 consisting of the mismanagement of the Indian companies, claims of oppression, winding up of companies, etc.
Conclusion
It is to conclude that National Company Tribunal Law is a quasi-judiciary body that was established to look after the issues that are created in the Indian companies. There are several advantages of the National Company Law Tribunal which has different appealing processes.
