It is a short and effective presentation covering all the major & important information of NCLT & NCLAT

1. NATIONAL COMPANY LAW TRIBUNAL
&
NATIONAL COMPANY LAW APPELLATE
TRIBUNAL
- ANKUR SHARMA
- CS, LL.B, M.com

2. TOPICS TO BE COVERED
 Constitution of NCLT & NCLAT.
 Members of NCLT & NCLAT.
 Selection Committee of NCLT.
 Advantages of NCLT & NCLAT.
 Powers of NCLT.
 Remedies for aggrieved persons.
 Areas opened up for PCS.
 CLB v/s NCLT.

3.  The NCLT was established under the companies Act 2013 and was
constituted on 1st June 2016.
 Company (Amendment) Act 2002 was passed to provide for their
establishment.
 Quasi judicial body to address the concerns of corporate litigations in
India.
 Dealing with question of law and also thrashing out the factual
disputes / aspects as well.
 NCLAT is body where decisions of the NCLT may be appealed.
INTRODUCTION

4. CONSTIUTIONAL VALIDITY OF NCLT & NCLAT
 Was put to rest by Supreme Court in 2010 in Union of India v/s R.
Gandhi, President, Madras Bar Association.
 Their provisions were included in the Companies Act, 2013 and were
again challenged by Madras Bar Association.
 By its order dated 14th May 2015, Supreme Court upheld the
constitutional validity of the NCLT / NCLAT provisions. This order
includes:
(1) Analysis of the SC Ruling; and
(2) Opportunities for practicing professionals, post-formation of NCLT
& NCLAT.
 Mr. Justice A.K.Sikri gave judgment on constitution of NCLT
considering :-
(1) Judicial Discipline
(2) To have one window for everything.

5. CONSTITUTION OF NCLT
On June 01 , 2016
MCA published a notification w.r.t constitution of NCLT & NCLAT.
Central Government also constituted 11 benches of NCLT.
and
in
New Delhi
(2)
Ahmedabad
Allahabad
Bangalore
Chandigarh
Chennai
Guwahati
Hyderaba
d
Kolkata
Mumbai

6. ECONOMIC TIMES JUNE 2016

7. NCLT – A NEW ERA TO CORPORATE ADJUDICATION
CLB
Cases w.r.t rectification of
register of members ,
oppression & mis-management
, compounding of offences.
BIFR Detection and revival of sick
companies.
State High
Court(s)
Winding up , Merger &
Amalgamation , reduction of
capital , restoration of name of
company.
Upon NCLT’s constitution , powers of following agencies shall vest with NCLT :-

8. MEMBERS OF NCLT
Judicial Members Technical Members
• High Court Judge.
• District Judge (5 years
or more).
• Advocate (10 years or
more).
• PCA (15 years or more).
• PCS (15 years or more).
• PCWA (15 years or
more).
• Joint Secretary level
legal officer in govt. (15
years or more).
• Person with special
knowledge (15 years or
more).
• Presiding officer of
labour court (5 years or
more).
• Tribunal under
Industrial Disputes Act
(5 years or more).
• Who is / has been
High Court Judge for
5 years or more.
• Appointed after
consultation with
Chief Justice of
India.
President

9. MEMBERS OF NCLAT
Chairperson
• Who is or has been Judge of the Supreme Court / Chief
Justice of a High Court.
Judicial
Member
• Who is or has been Judge of a High Court / is a Judicial
Member of Tribunal for 5 years or more.
Technical
Member
• Who is having special knowledge & experience of 25 years
or more in law , industrial finance & administration ,
investment , accountancy etc.

10. SELECTION COMMITTEE OF NCLT
POSITIO
N
QUALIFICATION
Convener Secretary, Ministry of Corporate Affairs (MCA).
Chairperson Chief Justice of India / his nominee.
Member Senior Judge of Supreme Court / Chief Justice of
High Court.
Member Secretary in Ministry of Corporate Affairs (MCA).
Member Secretary in Ministry of Law & Justice.
Member Secretary in Department of Financial Services in

11. PRESENT PRESIDENT, CHAIRPERSON OF NCLT & NCLAT
 Justice M.M. Kumar , a retired judge of the Punjab & Haryana high
court is president of the NCLT.
 Former retired judge of Supreme Court Of India Hon’ble Mr. Justice
S.J. Mukhopadhya is chairperson of the NCLAT.
 u/s 466 of Companies Act , 2013 , existing members and staff would
be members and staff of the NCLT. Rules for the same are yet to be
notified.
Hon’ble Mr. Justice S.J.
MukhopadhyaJustice M.M. Kumar

12. ADVANTAGES OF NCLT & NCLAT
 Avoids multiplicity of litigation before various Forums (High Courts,
CLB, BIFR) , thereby leading to consolidation of Corporate
Jurisdiction.
 Comprises of technical experts who provide more concrete and
precise decision.
 Mixture of judicial and equitable jurisdiction while deciding matters.
 Reduction in period of winding up from 20-25 years to 2 years.
 Reduction in pendency of cases leading to effective disposal of cases.

13. POWERS OF NCLT
Revival of Sick Industrial Companies.
Matters of merger , demerger , amalgamation
To order re-payment of deposits accepted by
NBFCs
Winding up of companies.
To review it’s own orders.

14. REMEDIES FOR AGGRIEVED PERSONS
NCLT
NCLAT
SUPREME
COURT
Appeal against order
of NCLT on Question
of law & facts to
NCLAT within 45 days.
Appeal against order
of NCLAT on Question
of law to Supreme
Court within 60 days.

15. AREAS OPENED UP FOR PCS
Appearance Before NCLAT
Authorized to appear before national company law
appellate tribunal (NCLAT).
PCS As Member Of NCLT
Technical member of NCLT, provided he has 15 years
working experience as secretary in whole-time practice.

16. • Advising and Assisting corporate sector on merger,
amalgamation, demerger, reverse merger,
compromise and other arrangements.
• Preparing schemes, Appearing before NCLT/NCLAT
for approval of schemes and
• Post merger formalities.
Compromise
And
Arrangement
• Identification of sickness of the company & place the
matter before the board of directors of the company
under the act.
• Assistance and Advise the sick company in making
reference to the tribunal.
• Preparation of scheme of rehabilitation.
• Seeking various approvals from the tribunal as may
be required.
Sick
Companies

17. • NCLT has also been empowered to pass an order
for winding up of a company.
• Representation of case of winding up case before
the tribunal.
• Permitted to act as liquidator in case of winding up
by the tribunal.
Winding Up
• Representation of cases of reduction of
capital before the tribunal.
Reduction Of
Capital

18. ESSENTIALS FOR PROFESSIONALS
Good
drafting
skills.
Practice of
writing
excellent
codes.
Practical
exposure.
Subject
Knowledge.
Effective
communica
tion skills.

19. CLB v/s NCLT
Basis CLB NCLT
No. of Benches It was functioning with only 5 benches. It will commence action with 11 benches.
Representative
Professionals
 CA.
 CS.
 CWA.
 Aggrieved Person.
 Authorized CA / CS / CWA.
 Authorized legal practitioners.
Class action suits Shareholders were allowed to protest
against the wrong doings of the
management.
Shareholders and creditors can file class
action suits against company for breaching
the provisions of the Act.
Dedicated online
portal
No such Facility. The Draft Rules introduce a ‘dedicated online
portal’ through which all the parties or central
/ state government agencies and local
government bodies may electronically send
and receive documents to or from NCLT and
make required payments.
E-filing No such provision. E-filing shall be mandatory except as
provided otherwise, with effect from the date
to be notified in the official gazette.
Members of the
Selection
Committee
It did not have a selection committee. Its selection committee comprises of 4
members including the Chief Justice of India,
who will have a casting vote.
Appeals Appeal to the High Court Appeals from the NCLT will go the NCLAT,
and thereafter with the Supreme Court.

20. CONCLUSION
• NCLT – Boon in dynamic corporate governance
environment.
• It’s constitution streamline efforts for faster resolution of
corporate disputes.
• Improves the ease of doing business in India.
• NCLT – Mega Tribunal.
• Enhances the due diligence of professionals while
performing their duties.