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News: The National Company Law Tribunal (NCLT) formed a five-member Bench to decide on Subhash Chandra’s repayment plan in a personal insolvency case involving claims of more than ₹22,000 crore after a Division Bench failed to reach a majority verdict.
About National Company Law Tribunal (NCLT)
- It is a quasi-judicial body established to handle civil corporate disputes.
- It was established on 1st June 2016 under the Companies Act, 2013.
- Objective: The main goal of NCLT is to offer a specialized forum for resolving disputes related to company law and the Insolvency and Bankruptcy Code, 2016 (IBC).
- Genesis: It was established based on the Balakrishna Eradi Committee’s recommendations on insolvency and company winding-up laws.
- Composition:
- It shall consist of a President and such number of Judicial and Technical Members as may be required.
- The Central Government appoints these members based on their expertise in fields like law, finance, accountancy, management, and administration.
- Structure: The NCLT has a principal bench in New Delhi and other benches in cities such as Ahmedabad, Bengaluru, Chennai, and Kolkata.
- Powers:
- It is not bound by the Code of Civil Procedure (CPC) and follows principles of natural justice, and the rules set by the Act and the Central Government.
- It can enforce orders with the same authority as a court.
- It can review its own decisions.
- It can regulate its own procedures.
- It handles insolvency resolution for companies and LLPs under the Insolvency and Bankruptcy Code, 2016.
- Appeal: Decisions of the NCLT may be appealed to the National Company Law Appellate Tribunal (NCLAT), the decisions of which may further be appealed to the Supreme Court of India.
