What is National Company Law Tribunal (NCLT)?

About National Company Law Tribunal (NCLT):

• It is a quasi-judicial body established under the Companies Act, 2013 and was constituted on June 1, 2016, by the Government of India.
• Committee: The NCLT was formed based on the recommendation of the Balakrishna Eradi committee on law relating to the insolvency and winding up of companies.
• Functions:
  • It was incorporated for resolving the civil corporate disputes arising under the Companies Act, 2013.
  • It is empowered to hear and decide on cases related to mergers and acquisitions, oppression and mismanagement, the winding up of companies, and other matters related to corporate law.
  • It is also an adjudicating authority for the Insolvency resolution process of companies and Limited Liability Partnerships under the Insolvency and Bankruptcy Code (IBC), 2016.
• The establishment of NCLT consolidates the corporate jurisdiction of the following authorities:
  • Company Law Board (CLB)
  • Board of Industrial and Financial Reconstruction (BIFR)
  • Appellate Authority for Industrial and Financial Reconstruction
  • All the powers relating to the winding up of a Company
  • All other provisions vested in High Courts.
• Composition: The NCLT shall consist of a President and such number of Judicial and Technical Members as may be required.
• Principal Bench: New Delhi
• Powers: 
  • It is not limited or bound by the rules laid down in the Code of Civil Procedure and is guided by the principles of natural justice, subject to the other provisions of this Act and any rules that are made by the Central Government. 
  • The NCLT can enforce any order that it gives in the same manner as a court would enforce it.
  • It has the power to scrutinize its own orders.
  • It has the power to regulate their own procedure.