NATIONAL COMPANY LAW TRIBUNAL (Syllabus: GS Paper 3 – Economy)

Context: The government planning to double the strength ‘national Company Law Tribunal (NCLT)

National Company Law Tribunal:

• About: It is a quasi-judicial body in India that adjudicates issues relating to Indian companies.
• Established: Under the Companies Act 2013 and was constituted on 1 June 2016 by the government of India and is based on the 
• Recommendation: V. Balakrishna Eradi committee on law relating to the insolvency and the winding up of companies.
• Composition: The NCLT bench is chaired by a Judicial member who is supposed to be a retired or a serving High Court Judge and a Technical member who must be from the Indian Corporate Law Service, ICLS Cadre.
• NCLT is the adjudicating authority for the insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.
• Power under the Companies Act:

oInitiated before the Company Law Board under the previous act (the Companies Act 1956).

oPending before the Board for Industrial and Financial Reconstruction, including those pending under the Sick Industrial Companies (Special Provisions) Act, 1985.

oPending before the Appellate Authority for Industrial and Financial Reconstruction.

oPertaining to claims of oppression and mismanagement of a company, winding up of companies and all other powers prescribed under the Companies Act.