What is National Company Law Tribunal (NCLT)?

What is National Company Law Tribunal (NCLT)?

The National Company Law Tribunal (NCLT) is like a special court in India that deals with problems related to companies. It was created under the Companies Act, 2013. NCLT handles various issues, such as conflicts between the companies, situations where a company can’t pay its debts, and the process of closing down a company. It has different benches in different places to make it easier for people to access it. NCLT plays a key role in resolving disputes and making decisions about company matters, making sure that things are done properly according to the laws that apply to companies in India....

Objectives of NCLT

1. Consolidation and Simplification of Dispute Resolution: One of the main objectives of instituting the NCLT was to provide a uniform framework that could consolidate and simplify the corporate dispute resolution process. There were multiple forums and tribunals before the NCLT’s establishment, which were responsible for adjudicating various company-related matters; however, these forums were still not able to manage and consolidate these processes, which led to delays and overlapping jurisdiction. NCLT has replaced all these other forums as a single, specialized body to overlook corporate disputes....

Major Functions of NCLT

1. Registration of Companies: The Companies Act 2013 has authorized questioning of the legitimacy of companies due to specific procedural errors that happened during the incorporation and registration processes. NCLT has been vested with the right to cancel the registration of a company or to dissolve any company if such errors are found during an investigation. The NCLT could even change the liability or charge for members from limited to unlimited. With the introduction of these powers under the Companies Act, the NCLT can de-register any company in specific situations when the NCLT thinks that the registration certificate has been obtained by wrongful or illegal means under Section 7(7) of the Companies Act, 2013....

Conclusion

A National Company Law Tribunal is established to streamline the corporate resolution process for company-related matters, insolvency proceedings, and other corporate disputes. The NCLT aims to provide a platform for resolving corporate disputes with better efficiency, within a time-bound manner, and clear clarity in the decision-making process. The NCLT has tackled the issue of red tape in corporate legal matters. NCLT has a principal bench in New Delhi and 16 total bench members handling different areas of jurisdiction throughout the country. NCLT is vested with several rights and powers by the Companies Act 2013 to empower NCLT as a quasi-judicial body to handle all company-related disputes....

National Company Law Tribunal- FAQs

What is NCLT?...