NCLT Introduction of NCLT What is NCLAT Composition of NCLT composition of NCLAT Powers of NCLT The old system of bankruptcy The present system of bankruptcy The new concept of the law Advantages of the new system Appeals of bankruptcy Challenges how the new law is better than old laws?

1. NATIONAL
COMPANY
LAW TRIBUNAL

2. Introduction
NCLT is a separate quasi- judicial authority for company law matters established
under the CompaniesAct, 2013 to handle corporate civil disputes arising under the
Act and was constituted on June 01, 2016.
It is an entity that has powers and procedures like those vested in a court of law or
judge.

3. What is
National Law
Appellate
Tribunal
(NCLAT)?
NCLAT is an appellate authority established for dealing with appeals
arising out of the decisions of NCLT.
NCLAT is new Forum of Quasi-Judicial and Have Following Powers:-
 Issue of Direction(s), orders, Summons,Warrants, or other
mandatory Process
 Power to extend time
 Power to exempt.

4. Composition
of NCLT

5. Composition
of NCLAT

6. NCLT have the powers of
Winding Up

7. NCLT
have the
powers of
Compromise and
Arrangements

8. NCLT have the
powers of
 Revival and rehabilitation of sick
companies

9. NCLT
have the
powers of
Rectification of Register(s)

10. NCLT
have the
powers of
Complaints relating to
refusal to transfer/of
transmission of shares

11. NCLT have
the powers
of
Investigation & Compounding

12. NCLT have
the powers
of
Oppression &
Mismanagement

13. NCLT have
the powers
of
Powers in terms of LLP Act,
2008

14. OldSystem
Courts
• Scheme of
compromise/
arrangements
• Winding up
• Reduction of
Share/Capital
• Restoration of
defunct companies
• Variation of rights
• Appeal againstCLB
orders
• Amalgamation and
restructuring
C0mpany Law Board
• Matters relating to
oppression and
mismanagement
• Cause an
investigation into the
affairs of the
company
• Compounding of
offenses
• Directs inspection of
minutes of general
meeting book.
• Call for annual
general meeting and
meeting of members
BIFR/AAIFR
• Revival of sick
companies
Corporate Dispute

15. PresentSystem

16. NewConcepts
Class Action suits
FinancialYear Changing
Cross Border Merger
Issue & Redemption of Preference Shares
Re-operating of Account
Power to Appoint Amicus Curiae

17. Advantage
 It is specialized court only for corporates, i.e., companies
registered in India
 There is no other tribunal/ forum for corporate disputes.
 It will reduce the multiplicity of litigation before different forums
an courts.
 It has multiple branches and is able to provide justice at a close
range.
 It consists of both judicial and technical members while deciding
on matters.
 The tie taken to windup a company is reduced.
 Speedy disposal of cases will help reduce the number of cases.
 NCLT & NCLAT have exclusive jurisdiction.

18. Appeals
1
NCLT
2
NCLAT (45 days under
Act & 30 days under
code)
3
SUPREMECOURT(60
days and only
question of law)

19. The Insolvencyand
BankruptcyCode,2016 &
NCLT
NCLT is an adjudicating authority for
insolvency resolution process and
liquidation of corporate debtors.
(Section 60 of code)
Crucial role: Right from accepting/
rejecting application filed for initiating
the corporate insolvency resolution
process till passing of dissolution order.
NCLAT-Appellate authority

20. Challenges
 Overburden of appeals on NCLAT.
 With right to appeal to supreme Court on any question
of law, a large number of cases may be delayed due to
pendency of appeal before overburdened Supreme
Court.