The National Company Law Tribunal (NCLT) is a quasi-judicial entity in India adjudicating matters concerning Indian corporations. Established under the Companies Act of 2013, the tribunal commenced operations on 1 June 2016, following the recommendations of the V. Balakrishna Eradi committee, which focused on insolvency and company winding-up procedures.
All cases under the Companies Act, including those involving arbitration, compromise, arrangements, reconstructions, and the winding up of companies, are adjudicated by the NCLT. The tribunal’s bench comprises a Judicial member, who is typically a retired or serving High Court Judge, and a Technical member from the Indian Corporate Law Service (ICLS) Cadre.
The NCLT serves as the adjudicating authority for insolvency resolution processes of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016. It possesses exclusive jurisdiction, preventing any criminal court from entertaining suits or proceedings on matters under its purview, as outlined by this Act or any other prevailing law. Furthermore, no injunctions shall be issued by any court or authority regarding actions executed or intended under the powers conferred by these laws, by the Tribunal or the Appellate Tribunal.
The tribunal operates sixteen benches: six in New Delhi (one principal bench), two in Ahmedabad, and one each in Prayagraj, Bengaluru, Chandigarh, Chennai (two), Cuttack, Guwahati, Hyderabad (three, including Amaravati), Jaipur, Kochi, Kolkata (two), and Mumbai (five). New benches in Indore and Amaravati have been approved, though the Indore bench awaits notification. Except for the bench in Amaravati, all are division benches. Justice R. Sudhakar, a retired Chief Justice of Manipur High Court, has presided as the tribunal’s president since 1 November 2021.
Under the Companies Act, the National Company Law Tribunal (NCLT) is empowered to adjudicate proceedings:
- Initiated before the Company Law Board under the previous Companies Act of 1956.
- Pending before the Board for Industrial and Financial Reconstruction, including cases under the Sick Industrial Companies (Special Provisions) Act, 1985.
- Pending before the Appellate Authority for Industrial and Financial Reconstruction.
- Concerning claims of oppression and mismanagement, company winding-up, and all other powers prescribed under the Companies Act.
Types of Cases Handled by National Company Law Tribunal (NCLT) in India
The National Company Law Tribunal (NCLT) specializes in corporate law and handles various types of cases, including:
- Company Law Cases: The NCLT oversees matters related to the incorporation, management, and dissolution of companies. This includes mergers, acquisitions, amalgamations, and restructuring.
- Insolvency Cases: The tribunal addresses insolvency and bankruptcy issues, managing resolution plans and liquidation processes.
- Shareholder and Management Disputes: Disputes between shareholders and company management, including cases of oppression and mismanagement, are adjudicated by the NCLT.
- Competition Law Cases: The tribunal also handles cases involving violations of competition law and antitrust practices by companies.
- Winding Up of Companies: Cases involving the voluntary or court-ordered winding up of companies are within the NCLT’s jurisdiction.
