National Company Law Tribunal (NCLT)
Polity > Institutions/Bodies > Tribunals
Why in news?
- The government has appointed eight judicial and 10 technical members at the National Company Law Tribunal (NCLT), amid the Supreme Court flagging concerns about vacancies in various tribunals.
About National Company Law Tribunal (NCLT):
- The National Company Law Tribunal (NCLT) is a quasi-judicial body that adjudicates issues relating to Indian companies.
- The NCLT was established under the Companies Act 2013.
- It was constituted on 1 June 2016 based on the recommendation of the Justice Eradi committee on law relating to insolvency and winding up of companies.
- NCLT comes under Ministry of Corporate Affairs.
- Decisions of the NCLT may be appealed to the National Company Law Appellate Tribunal (NCLAT).
- The tribunal is responsible for hearing appeals from the orders of National Company Law Tribunal (NCLT), starting on 1 June 2016.
- The tribunal also hears appeals from orders issued by the Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC. It also hears appeals from any direction issued, decision made, or order passed by the Competition Commission of India (CCI).
- The decisions of NCLAT may be appealed to the Supreme Court of India.
Role of NCLT under Insolvency and Bankruptcy Code:
- The National Company Law Tribunal is the Adjudicating Authority for Insolvency resolution process of Companies and Limited Liability Partnerships under the Insolvency and Bankruptcy Code, 2016.
- A plea for insolvency is submitted to the NCLT (in case of corporate debtors) by financial or operation creditors or the corporate debtor itself.
- If the plea is accepted, the tribunal has to appoint an Insolvency Resolution Professional (IRP) to draft a resolution plan within 180 days (extendable by 90 days).
- Following which the Corporate Insolvency Resolution process is initiated by the court
- IBC has designated the Debt Recovery Tribunal (DRT) as the Adjudicating Authorities for individuals, for insolvency resolution process of individuals under the Insolvency and Bankruptcy Code, 2016.
Consider the following statements regarding National Company Law Tribunal (NCLT):
1. It functions under the Ministry of Corporate Affairs.
2. It is the Adjudicating Authority for insolvency resolution process of individuals under the Insolvency and Bankruptcy Code, 2016.
3. Decisions of the NCLT can be appealed to Supreme Court only
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3