NCLT (Syllabus: GS Paper 3 – Economy)

Context: The Supreme Court recently cautioned the National Company Law Tribunal (NCLT) against routinely ordering revaluation of a corporate debtor's assets.

• The bench ordered, while setting aside an order of revaluation, passed by the NCLT in September 2021 and affirmed by the National Company Law Appellate Tribunal (NCLAT) in January 2022.

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

• Initiated before the Company Law Board under the previous act (the Companies Act 1956);
• Pending before the Board for Industrial and Financial Reconstruction, including those pending under the Sick Industrial Companies (Special Provisions) Act, 1985;
• Pending before the Appellate Authority for Industrial and Financial Reconstruction; and
• Pertaining to claims of oppression and mismanagement of a company, winding up of companies and all other powers prescribed under the Companies Act.