Aegis Legal is one of the best NCLT Lawyer firm in Delhi India which has very extensive practice of Commercial & mercantile law, Companies Law, Insolvency & Bankruptcy IBC Laws related litigation practice across India. The founder partner of the firm Mr. Ashok K Singh advocate is known as noted Commercial litigation lawyer of India, who leads NCLT practice of the firm. Under his guidance the firm has been engaged in much high-profile NCLT Cases across India.
The National Company Law Tribunal is a quasi-judicial body established to adjudicate matters related to companies in India. It has been established under the Companies Act, 2013. NCLT acts as specialized tribunal to resolve corporate disputes. NCLT also has the authority to address various other matters, such as insolvency, mergers, and corporate governance issues. The introduction of NCLT ensures a separate forum for company-related cases, steps towards efficient disposal, and less burden on traditional courts.
The jurisdiction of NCLT is Original jurisdiction, which means it happens to be the first-ever forum for such proceedings in respect of company law matters like corporate insolvency, mergers and acquisitions, winding up of companies, and oppression/mismanagement.
Power and Function of NCLT:
1. Class Action:
An application under section 245 of the Companies Act, 2013 may be filed to the tribunal by either the member of the company or by the depositors or on the behalf of the members stating that affairs have been conducted in the manner which is prejudicial to the interest of the company and seeking all or any of the ground, the company may be retrained:
- From doing any act which is outside the scope of MOA and AOA.
- From committing any breach of this provision of MOA and AOA,
- And its directors from acting on such resolutions,
- Doing any act which is either contrary to this act other act which is in force foe time being,
- Declaring any resolution which in turn alters the MOA and AOA and becomes void if such resolution is passed.
2. Deregistration:
Section 7(7) of the Companies Act, 2013 states if the tribunal comes to the notice that the company at the time of incorporation of the company furnished false or incorrect information or by suppressing any material facts, information or any declaration is filed by the company the tribunal may pass any one of the orders as mentioned below:
- Pass such orders as it thinks fit.
- Pass orders for winding of the company.
- Direct the liability of members shall be unlimited.
3. Oppression and Mismanagement:
Section 241 of the Companies Act, 2013 states that any member of the company who has the right to tribunal as per the section 244 of the Act, 2013 shall file a complaint to the tribunal.
NCLT’s objective is to provide effective platform for the adjudication of the corporate dispute. NCLT was established by the government intending to create a specialized forum with expertise in company law matters, thereby ensuring that corporate disputes are resolved in a fair, timely and impartial manner.
The NCLT plays a crucial role in the insolvency resolution process, which is another important objective of the tribunal. With the advent of the insolvency and Bankruptcy Code, 2016 the NCLT has been entrusted with the responsibility of overseeing and facilitating the insolvency resolution process for both corporate entities and individuals. It acts as the adjudicating authority fir initiating insolvency proceedings, appointing insolvency professionals and monitoring the entire resolution process. The objective is to ensure a transparent, time-bound and efficient resolution of insolvency cases, benefiting both debtors and creditors.
The National Company Law Appellate Tribunal was also enacted under the Companies Act, 2013. Here again, its primary function is to act as an appellate authority over decisions made by NCLT. Appeals from parties who feel that their claim has not been vindicated, due to the orders passed by NCLT, come up before NCLAT. Such a system ensures that law standards are kept alive and also acts as a check on the decisions of the tribunal in corporate matters. NCLAT has its appellate jurisdiction, that is, to hear appeals of cases already decided by the NCLT. Parties, having not agreed with the decisions passed by NCLT, can approach the NCLAT within a specified time of forty- five days as stated under section 421 of the Companies Act, 2013; section 421 is produced herein under for the better understanding:
Appeal from orders of Tribunal.—
(1) Any person aggrieved by an order of the Tribunal may prefer an appeal to the Appellate Tribunal.
(2) No appeal shall lie to the Appellate Tribunal from an order made by the Tribunal with the consent of parties.
(3) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order of the Tribunal is made available to the person aggrieved and shall be in such form, and accompanied by such fees, as may be prescribed:
Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days from the date aforesaid, but within a further period not exceeding forty-five days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within that period.
(4) On the receipt of an appeal under sub-section (1), the Appellate Tribunal shall, after giving the parties to the appeal a reasonable opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against.
(5) The Appellate Tribunal shall send a copy of every order made by it to the Tribunal and the parties to appeal.”
The objective and purpose of the National Company Law Appellate Tribunal (NCLAT) is to act as an appellate authority for orders of the National Company Law Tribunal (NCLT) and other related bodies, ensuring a timely and transparent process for resolving corporate disputes and insolvency matters.
Functions:
It hears appeals against the orders of National Company Law Tribunal(s) (NCLT), with effect from 1st June, 2016.
It is the Appellate Tribunal for hearing appeals against the orders passed by NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC).
It is the Appellate Tribunal for hearing appeals against the orders passed by Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC.
It is the Appellate Tribunal to hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India (CCI).
