What is National Company Law Appellate Tribunal (NCLAT)?

About National Company Law Appellate Tribunal (NCLAT):

• It is a quasi-judicial body constituted under Section 410 of the Companies Act, 2013for hearing appeals against the orders of the National Company Law Tribunal(s) (NCLT), with effect from 1st June 2016.
• It aims to expedite the resolution of corporate disputes and promote transparency and efficiency in the corporate governance and insolvency processes in India.
• Functions:
  • Hear appeals against the orders passed by the NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC).
  • Hear appeals against the orders passed by the Insolvency and Bankruptcy Board of India (IBBI) under Sections 202 and 211 of the IBC.
  • To hear and dispose of appeals against any direction issued, or decision made, or order passed by the Competition Commission of India (CCI).
  • It is also the Appellate Tribunal to hear and dispose of appeals against the orders of the National Financial Reporting Authority.
  • It also enjoys advisory jurisdiction when a legal issue has been referred to it by the President of India for opinions and advice.
• Headquarters: New Delhi.
• Composition:
  • It is composed of a chairperson and judicial and technical members.
  • These members are appointed by the Central Government based on their expertise and experience in relevant fields such as law, finance, accountancy, management, and administration.
• Disposing of cases:
  • On the receipt of an appeal from an aggrieved person, the NCLAT would pass such orders, after allowing being heard, as it considers fit, confirming, changing, or setting aside the order that is appealed against.
  • The Appellate Tribunal is required to dispose of the appeal within a period of six months from the date of the receipt of the appeal.
  • Its decisions can be appealed to the Supreme Court.
• Powers:
  • It has the authority to regulate its own procedures and has powers similar to those vested in a civil court under the Code of Civil Procedure, 1908. 
  • These powers include summoning and examining witnesses, requiring the production of documents, receiving evidence on affidavits, issuing commissions, and more.
  • Any order made by the NCLAT can be enforced in the same manner as a decree made by a court in a suit.
  • There shall be no jurisdiction of a civil court to hear any suit or proceeding to any matter which the NCLAT has been authorised to determine by or under the Companies Act, 2013, or any other law for the time being in force.
  • No injunction shall be granted by any Court or other authority in respect of any action that is taken or that ought to be taken by the NCLAT in pursuance of any power conferred on it by or under this Act or any other law for the time being in force.