What is 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.
Section 408 of the Companies Act, 2013 defines NCLT and it specifies that the Central Government shall constitute a tribunal to be known as the National Company Law Tribunal. It consists of the President and other judicial and technical members, to exercise and discharge powers and functions as described by the act or any other power delegated to them by way of any other enactment or any notification by the Ministry of Corporate Affairs (MCA).
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)