What is NCLAT?
The National Company Law Appellate Tribunal (NCLAT) is like a higher court in India for company problems. When people don’t agree with decisions made by the National Company Law Tribunal (NCLT), they can appeal to NCLAT. It functions as a second appeal. NCLAT looks at the appeals and decides if the NCLT’s decision was fair or not. If someone is still not satisfied with the decision of NCLAT, they cannot appeal further since the decision of NCLAT will be final. Established under the Companies Act, 2013, NCLAT ensures there’s a way for people to challenge decisions and make sure everything is done correctly in company matters.
Section 410 of the Companies Act, 2013 defines NCLAT. It states that the Central Government, by way of notification shall constitute an appellate tribunal to be known as the National Company Law Appellate Tribunal comprising of chairperson, and judicial and technical members for hearing appeals against the order of the Tribunal.
Difference between NCLT and NCLAT
The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) are the legal entities in India that deal specifically with matters related to company law and corporate affairs. These institutions play a crucial role in the resolution of disputes and legal proceedings involving companies. Both tribunals were established as a part of reforms in India’s Company law. NCLT and NCLAT were established as per the powers granted to the Ministry of Corporate Affairs (MCA) under sections 408 and 410 of the Companies Act, 2013, respectively.
Geeky Takeaways:
- NCLT and NCLAT were established as a part of reforming Companies law.
- The Ministry of Corporate Affairs (MCA) published a notification regarding the constitution of NCLT and NCLAT with effect from June 01, 2016.
- Sections 408 and 410 of the Companies Act, 2013 give a clear explanation to both NCLT and NCLAT.
Table of Content
- What is NCLT?
- What is NCLAT?
- Difference between NCLT and NCLAT
- Background of NCLT
- Transition from CLB to NCLT and NCLAT
- Conclusion
- Frequently Asked Questions (FAQs)
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