National Company Law Tribunal is a legal body that is responsible for managing disputes in a company or a firm. Set by the central government of India, the National Company Law tribunal governs the functions and keeps an eye on all the malfunctions of a Company.
Lex Solutions is a top-notch boutique law firm with the best corporate lawyers Chandigarh. With the best legal consultants in Chandigarh, Lex solutions provide appropriate knowledge of the National Company Law Tribunal. This legal consultant firm also advises clients in corporate law and company law. To get the best advisory on National Company Law Tribunal, one can reach a lawyer in Chandigarh through Lex solutions.
Read on to know in-depth about the National Company Law Tribunal.
What Is National Company Law Tribunal?
Established by the government of India, the National Company Law Tribunal is a quasi-judiciary body to handle disputes related to a company or a firm. This legal authority is set up to govern the companies registered in India.
National Company Law Tribunal or NCLT renders a formal ruling on a contentious subject involving business difficulties in India. Under Section 408 of the Companies Act of 2013, the Central Government established the National Company Law Tribunal in 2016.
The management of conflicts and business dysfunction in India is greatly influenced by this tribunal. All businesses with Indian corporate registrations are required to follow the National Company Law Tribunal’s guidelines and rulings. This law is the successor of the Company Law Board and till today, the Government of India has appointed over 11 benches of NCLT.
Powers of National Company Law Tribunal
The NCLT is bound by the laws of the Code of Civil Procedure. Any litigation or procedure involving an issue that the Tribunal or the Appellate Tribunal has the authority to decide cannot be considered by a civil court.
There are many powers that National Company Law Tribunal enjoys. Here are some of the major powers that NLTC practices.
- NCLT has the authority to change an Indian company’s financial year.
- NCLT can freeze the assets of a company.
- The tribunal can hear complaints about corporations’ refusals to transfer securities and the correction of member records.
- Companies may be deregistered by the NCLT under certain conditions if their registration was obtained improperly or illegally.
- The authority has the power to look into who owns the business.
- The authority has powers to place restrictions on any of the company’s securities.
- NCLT can declare the liability of members unlimited.
- NCLT safeguards the interests of all parties involved, particularly depositors and shareholders who are not promoters.
- NCLT has the authority to protect investors against a broad range of wrongdoings carried out by the firm management or any connected consultants and advisors.
- With the help of NCLT, depositors who are displeased with the company’s conduct or inactions that impair their depositor rights may seek remedies through class lawsuits.
National Company Law Tribunal benches
According to the government of India, there are 11 benches of the National Company Law Tribunal all over India. The list given below shows the benches with their respective jurisdiction.
- NCLT, Principal Bench, New Delhi
Jurisdiction: Delhi, State of Rajasthan, State of Haryana
- NCLT, Ahmedabad
Jurisdiction: Gujarat, Madhya Pradesh, the Union Territory of Dadra and Nagar Haveli, and the Union Territory of Daman and Diu
- NCLT, Allahabad
Jurisdiction: State of Uttar Pradesh and Uttarakhand
- NCLT, Bengaluru
Jurisdiction: Karnataka
- NCLT, Chandigarh
Jurisdiction: Himachal Pradesh, Jammu & Kashmir, Punjab, and the Union Territory of Chandigarh
- NCLT Chennai
Jurisdiction: Kerala State, Tamil Nadu State, Lakshadweep Union Territory, Puducherry Union Territory
- NCLT, Guwahati
Jurisdiction: Arunachal Pradesh, Assam, Manipur, Mizoram, Meghalaya, Nagaland, Sikkim, and Tripura are the states of Arunachal Pradesh, Assam, and Manipur
- NCLT, Hyderabad
Jurisdiction: State of Andhra Pradesh, State of Telangana
- NCLT, Kolkata
Jurisdiction: Bihar, Jharkhand, Odisha, West Bengal, and the Union Territory of Andaman and Nicobar Island
- NCLT, Mumbai
Jurisdiction: Chhattisgarh, Maharashtra, and Goa
Advantages of the National Company Law Tribunal
There are various advantages of NCLT in Indian society. It helps in governing the functions of a company by keeping a check on its corporate law and company law as well. Here are some of the advantages of NCLT.
- NCLT is a special Court; only for the companies registered in India.
- NCLT helps in dissolving disputes in a much easier way.
- Lesser time is taken to resolve the matter related to any company dispute.
- National Company Law Tribunal also keeps a check on the function of the company.
- The NCLT can provide justice up close thanks to its many branches.
- When making decisions, NCLT has members who are both judicial and technical.
- The number of lawsuits filed in numerous forums and courts will decline.
- The NCLT makes sure that the employees and the depositors who are displeased with the company’s conduct or inactions that impair their depositor rights may seek remedies through class lawsuits.
Scope of National Company Law Tribunal
The National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal have replaced the Company Law Board, which was established under the Companies Act of 1956. (NCLAT).
The Company Law Board, the Board for Industrial and Financial Reconstruction (BIFR), the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), and the powers relating to winding up or restructuring and other provisions, vested in High Courts, all fall under the corporate jurisdiction of the National Company Law Tribunal (NCLT).
The National Company Law Tribunal is the need of the hour as it is important to govern the companies operating in India. The 11 benches of the NCLT provide a better solution in case of disputes and malfunctions.
Conclusion
It is quite important to govern a company so that it follows all the guidelines and rules set by the higher authorities. National Company Law Tribunal has the authority to maintain the proper functioning of a company or a firm. You can visit Lex Solutions which is one of the best law firms in Chandigarh with many renowned corporate lawyers and legal counselors. For more information about NCLT, read the complete post.
