National Company Law Tribunal and Its Proceedings (Download PDF)

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The National Company Law Tribunal is a quasi-judicial body established under the Companies Act 2013 being constituted on 1 June 2016 by the Indian Government. This tribunal is based on the recommendations of the Justice Eradi Committee and looks into the issues relating to the Indian Companies. The tribunal looks into law relating to insolvency and winding up of companies. NCLT disposes all such proceedings like arbitration, compromise, arrangements and reconstruction that fall under the Companies Act.

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This is Image Show in Bankruptcy Grip Tightens

This is image show in bankruptcy grip tightens

Proceedings

  • The National Company Law Tribunal is the adjudicating authority for insolvency resolution process of companies.

  • The limited liability partnerships under the Insolvency and Bankruptcy Code, 2016 falls under the National Company Law Tribunal.

  • The NCLT has power under the Companies Act to adjudicate the following proceedings:

    • Any such case that is initiated before the Company Law Board under the previous act (the Companies Act 1956);

    • Any such case that is pending before the Board for Industrial and Financial Reconstruction, including those pending under the Sick Industrial Companies (Special Provisions) Act, 1985

  • Cases pending before the Appellate Authority for Industrial and Financial Reconstruction also fall under the proceedings of NCLT.

  • Claims of oppression and mismanagement of a company including winding up of companies and all other powers prescribed under the Companies Act.

Significant Cases

  • In Leela-Brookfield deal the Securities and Exchange Board of India (SEBI) has informed the NCLT that it will take another 3 months or so to complete its probe into the deal between Canadian investor Brookfield and Hotel Leela venture.

  • The JM Financial ARC under the insolvency resolution has filed a case against the Leela Hotel because of not being able to repay the dues.

  • ITC is seeking a waiver on equity-ownership threshold to be eligible to file a case against the embattled provider of luxury leisure accommodation.

  • The Cuttack Bench of NCLT on 8th July 2019 passed order for liquidation of Adhunik Metaliks Ltd and Group Company Zion Steel after the UK based Liberty House Group failed to implement its resolution plan.

  • The National Company Law Appellate Tribunal (NCLAT) has directed the Mumbai bench of the NCLT to pass an order over the insolvency plea against 15 Videocon (NSE -3.23 %) group companies within next three weeks.

  • The NCLAT order came over the plea filed by the lenders, led by SBI and the Resolution Professional of the company.

  • The lenders had pleaded that the NCLT was yet to pronounce its judgement even as it reserved an order after the completion of arguments in January 2019.

- Published/Last Modified on: August 12, 2019

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