Ricky Chopra International Counsels is a full service international law firm based in gurgaon
read more at https://rickychopra.co/
read about our services for General Corporate & Business Laws
at https://rickychopra.co/services/gen-corporate-and-business-laws/
National Company Law Tribunal By AAKASH TIWARIAAKASH TIWARI
NCLT introduction, its role, what are the previous tribunal and there powers, what are the new opportunity comes, notification of NCLT on 1st July, 2016, its sections, constitution etc.
arbitraje en el peru
es un tema sobre la carrera de derecho para que los estudiantes se guien con este nuevo tema y asi poder resolver todas sus dudas,in duda el arbitraje puede ser una herramienta muy óptima para solucionar una controversia porque nos evita tramontar todas las instancias judiciales, toda la duración que pueden tener estos y obtener una decisión un poco más rápida o tener una decisión que va a ser un poco más especializada, con la posibilidad de escoger a los árbitros.
MODELO DE DEMANDA CONTENCIOSA ADMINISTRATIVA CONTRA EL SAT. Se muestra como impugnar judicialmente papeletas confirmadas por el SAT de la Municipalidad Metropolitana de Lima (autor José María Pacori Cari)
National Company Law Tribunal By AAKASH TIWARIAAKASH TIWARI
NCLT introduction, its role, what are the previous tribunal and there powers, what are the new opportunity comes, notification of NCLT on 1st July, 2016, its sections, constitution etc.
arbitraje en el peru
es un tema sobre la carrera de derecho para que los estudiantes se guien con este nuevo tema y asi poder resolver todas sus dudas,in duda el arbitraje puede ser una herramienta muy óptima para solucionar una controversia porque nos evita tramontar todas las instancias judiciales, toda la duración que pueden tener estos y obtener una decisión un poco más rápida o tener una decisión que va a ser un poco más especializada, con la posibilidad de escoger a los árbitros.
MODELO DE DEMANDA CONTENCIOSA ADMINISTRATIVA CONTRA EL SAT. Se muestra como impugnar judicialmente papeletas confirmadas por el SAT de la Municipalidad Metropolitana de Lima (autor José María Pacori Cari)
MODELO DE RECURSO DE QUEJA POR DENEGATORIA DEL RECURSO DE CASACIÓN. El 26-10-2022 se publica la Ley 31591 que modifica el CPC sobre el recurso de queja para interponerlo ante la denegatoria del recurso de casación (Autor José María Pacori Cari).
RECURSO APELACIÓN PAS: Se muestra cómo hacer un recurso de apelación ante el Tribunal de Responsabilidades Administrativas de la Contraloría General de la República (Autor José María Pacori Cari)
A Handbook specifically dealing with Membership of Company as per The Companies Act,1956; includes comparison between member and shareholder of company, entitlement of membership, nomination, rights of members and related provisions
9.01 Meaning and Nature of Company
9.02 Kinds of Joint Stock Companies
9.03 Stages in the Formation of a Company
9.04 Share Capital of Company
9.05 Disclosure of Share Capital in the Company’s Balance Sheet
9.06 Type of Shares Issued by Limited Companies
MODELO DE RECURSO DE QUEJA POR DENEGATORIA DEL RECURSO DE CASACIÓN. El 26-10-2022 se publica la Ley 31591 que modifica el CPC sobre el recurso de queja para interponerlo ante la denegatoria del recurso de casación (Autor José María Pacori Cari).
RECURSO APELACIÓN PAS: Se muestra cómo hacer un recurso de apelación ante el Tribunal de Responsabilidades Administrativas de la Contraloría General de la República (Autor José María Pacori Cari)
A Handbook specifically dealing with Membership of Company as per The Companies Act,1956; includes comparison between member and shareholder of company, entitlement of membership, nomination, rights of members and related provisions
9.01 Meaning and Nature of Company
9.02 Kinds of Joint Stock Companies
9.03 Stages in the Formation of a Company
9.04 Share Capital of Company
9.05 Disclosure of Share Capital in the Company’s Balance Sheet
9.06 Type of Shares Issued by Limited Companies
National Company Law Tribunal and NCLAT Renu Bisht
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?
I carried out research on WINDING UP OF A COMPANY and how it differs from Corporate Receivership. I prepared and presented my research before the firm's Managing Partner and Lawyers. I also answered questions posed at me by the lawyers and the Firm's Managing Partner.
Supreme Court holds provisions of the National Tax Tribunal Act, 2005, as con...D Murali ☆
Supreme Court holds provisions of the National Tax Tribunal Act, 2005, as constitutionally invalid - T. N. Pandey - Article published in Business Advisor, dated - December 25, 2014 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The Ministry of Corporate Affairs (MCA) vide notification no. S.O. 1932(E) and S.O.1933(E)dated June 1, 2016 notified constitution of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT).
For more information visit here : http://www.nclt.in
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
“White collar crimes are a big global concern and is increasing at an alarming rate. Various studies have proved that the financial loss to the society from white collar crimes is much more than the other crimes. India is a developing country and white collar crimes are not only a detriment to the economic growth of the country but also spoils the image of our country.”
Created By:
Tejinder Singh
Counsel
Ricky Chopra International Counsels
website: rickychopra.co
Read here https://rickychopra.co/2018/02/21/white-paper-on-white-collar-crime/
White Paper On Place Of Effective Management Ricky Chopra
“Place of effective management” has been defined to mean a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance made.
Finance Act, 2015 (FA 2015) has brought about a paradigm shift by introducing the ‘Place of Effective Management’ (POEM) rule to determine residency of overseas companies, in India.
For any querries or to read more vist http://www.rickychopra.co/
Somewhere amidst the unending human rights violations, prolonged court proceedings and bleak hopes, the word ‘justice’ has lost its meaning. In Hans Kelsen’s words, longing for justice is a man’s eternal longing for happiness.
The Companies Act 2013 has introduced significant changes in the composition of the board of directors of a company. This White Paper contains the description of some provisions related to Independent Directors which have been modified in Companies Act 2013.
Instruments issued by registered foreign institutional investors (FII) to overseas investors, who wish to invest in the Indian stock markets without registering themselves with Securities and Exchange Board of India are called Participatory Notes or P-Notes.
White Paper on IPO This study includes the definition, types, procedures, regulatory aspects and various terms associated with issue of initial public offerings (IPOs) in Indian stock market.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
White Paper on National Company Law Tribunal and National Company Law Appellate Tribunal
1. A PRODUCT OF RICKY CHOPRA INTERNATIONAL COUNSELS
WHITE PAPER ON
NATIONAL COMPANY LAW TRIBUNAL (NCLT)
AND
NATIONAL COMPANY LAW APPELLATE TRIBUNAL (NCLAT)
1
2. NEW ERA OF CORPORATE
LITIGATION-
NCLT & NCLAT
2
3. BACKGROUND
It was started with the constitution of Eradi Committee , which was formed to
review law relating to insolvency and winding up of companies and laws like
The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).
The Committee made various recommendations, which were incorporated in
the Companies (Amendment) Bill, 2001.
The said Bill was subsequently passed and became the Companies
(Amendment) Act, 2002.
The Companies (Second Amendment) Act, 2002 paved way for setting up of
the NCLT and NCALT.
However, Madras High Court in R. Gandhi V. Union of India, held that NCLT
is against the basic structure of the constitution as it has been awarded with all
the powers which are conferred to the High Court except, Article 266.
Subsequently, Hon’ble Supreme Court in Union of India Vs. R. Gandhi/
Madras Bar Association upheld the Constitutional validity of NCLT. Hence
establishment of NCLT and NCLAT were considerably delayed.
4. Notification: 01st June 2016
The Central Government has constituted the National Company Law Tribunal
(NCLT) and the National Company Law Appellate Tribunal (NCLAT) on 1
June, 2016 and dissolve the Company Law Board (CLB) as constituted under
the Companies Act, 1956 from the same day.
The NCLT has started functioning with eleven Benches – two at New Delhi and
one each at Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai,
Guwahati, Hyderabad, Kolkata and Mumbai. The Principal Bench of the NCLT
will be at New Delhi.
4
5. Introduction
NCLT is a quasi-judicial authority created under the Companies Act, 2013 to
handle corporate civil disputes arising under the Act. It has powers and
procedures like those vested in a court of law.
NCLT is obliged to objectively determine facts, decide cases in accordance with
the principles of natural justice and draw conclusions from them in the form of
orders. Such orders can remedy a situation, correct a wrong or impose legal
penalties/costs and may affect the legal rights, duties or privileges of the
specific parties. The Tribunal is not bound by the strict judicial rules of
evidence and procedure. It can decide cases by following the principles of
natural justice.
NCLAT or “Appellate Tribunal” is an authority provided for dealing with
appeals arising out of the decisions of the Tribunal. It is formed for correcting
the errors made by the Tribunal. It is an intermediate appellate forum where
the appeals lie after order of the Tribunal. The decisions of Appellate Tribunal
can further be challenged in the Supreme Court. Any party dissatisfied by any
order of the Tribunal may bring an appeal to contest that decision. The
Appellate Tribunal reviews the decisions of the Tribunal and has power to set
aside, modify or confirm it.
5
6. Procedure, Power and Natural Justice
The tribunal and appellate tribunal shall not be bound by the CPC but shall be
guided by the principles of natural justice
It shall have the powers to regulate its own procedure.
All proceeding before the tribunal and the appellate tribunal shall be deemed
to be judicial proceedings within the meaning of section 193 and 228of Cr.P.c.
However the tribunal and appellate tribunal will have the power of the civil
courts under CPC regarding summoning and evidence etc. (Section 424)
6
7. Corporate
Disputes
High Court
Mergers and
Demergers
/Amalgamations,
Winding up,
Reduction of capital
Appeal against CLB
order
Company Law
Board
Power of rectification of register,
rectification of register of
members,
Complaints relating to refusal to
transfer/ transmission of
securities,
Matters relating to oppression
and mismanagement
And other non-adversarial issues
Such as investigation and
compounding of offences.
BIFR/
AAIFR
Revival of
Sick
Industries
Old Regime
7
8. Company Law
Board
(CLB)
Appellate
Authority for
Industrial and
Financial
Reconstruction
(AAIFR)
High Court
power in
Company
Matters
Board for
Industrial and
Financial
Reconstruction
(BIFR)
National
Company
Law
Tribunal
(NCLT)
New Regime
8
9. Consolidation of Corporate Jurisdiction
NCLT has replaced CLB, BIFR, and Company Court in the Hon'ble High Courts, and
consolidate the jurisdiction of Judicial Courts and Quasi judicial tribunals.
Now NCLT has :
All the powers of BIFR for revival and rehabilitation of sick industrial companies.
Power of High Court in the matters of mergers, demergers, amalgamations,
winding up, Reduction of capital.
Most of the powers of the Company Law Board under the Companies Act, 1956.
Power to order repayment of deposits accepted by Non- Banking Financial
Companies as provided in section 45QA of the Reserve Bank of India Act, 1934.
Power to Review its own orders.
9
10. Opportunity under NCLT Regime
Inherit from High
Court & BIFR
•Merger &
Amalgamation
•De-Merger
•Reduction of Share
Capital
•Winding up
•BIFR
Inherit from CLB
•Mismanagement and
Oppression
•Rectification of
register
•Compounding
•To call AGM/EOGM
•Removal of Directors
and Auditors
•Others
New Concepts
•Class Action Suit
•Financial Year
Changing
•Cross Border Merger
•Issue and redemption
of Preference Shares
•Re-opening of
accounts
10
11. Transition from CLB to NCLT
Section 434 of The Act has set out in detail the procedure to deal with cases
which are pending in various forums .
The Government has notified 1st June 2016 for transfer of matters from CLB to
NCLT.
On that date, all the pending proceedings before CLB will be transferred to
NCLT and Tribunal will dispose of such matters in accordance with the
provisions of law. Tribunal has discretion to take up the pending CLB
proceeding from any stage. At its discretion, it can take up the matter at stage
where it was left by CLB or start the proceedings afresh or from any stage it
deems fit.
11
12. Advantage of Consolidation of Corporate
Jurisdiction
Appeals will be streamlined
Appeals against the order of the NCLT will go to NCLAT, exclusively dedicated for this
purpose.
Further appeal to the Hon’ble Supreme Court will only be on any question of law,
thereby reducing the delay in appeals (Section 423).
Earlier, the decisions of the Company Law Board were challenged before the High
Court and then in the Supreme Court.
Uniformity of Judgements
Instead of getting different decisions on the same matter by different High Courts,
consolidation of jurisdiction will help the Tribunal Members and Judges in delivering
uniform decisions and thereby removing any ambiguity and friction.
12
13. Advantage of Consolidation of Corporate
Jurisdiction
Reduces the burden on the Hon’ble High Courts
Avoid multiplicity of litigation before various Forums (High Courts, CLB, BIFR,
AAIFR).
Focused attention to company matters
Advantage of having a single body dealing in company matters is that attention is
focused to such matters only. High Court which was dealing in other matters took
a long time to dispose off Company related matters. This will Reduce time for
adjudication process.
At present, at the CLB, a matter takes six months to two years, while at the BIFR, it
takes five-six years. But at the NCLT, it may take just three to nine months.
13
15. Incorporation Of A Company
Section 7(7)
NCLT to pass orders such as--for regulation of management of the company, direct
that the liability of the members be unlimited or pass an order for winding up in
cases where a company has been incorporated by furnishing any false or incorrect
information or suppressing any material fact or information or by any fraudulent
action.
Sections 7(7)(c) and (d) of the 2013 Act which provide powers to NCLT to remove the
name of the company from the Register of Companies and order for winding up have still
not been notified.
Provided that before making any order under this sub-section,—
(i) the company shall be given a reasonable opportunity of being heard in the
matter; and
(ii) the Tribunal shall take into consideration the transactions entered into by
the company, including the obligations, if any, contracted or payment of any
liability.
15
16. Alteration Of Articles
Second proviso to Section 14(1) and Section 14(2)
If a company passes a special resolution to alter the articles that has the effect of
converting a public company into a private company, this would require approval
of the NCLT. A copy of the order approving the change shall be filed together with
a printed copy of the altered articles within a period of 15 days in the manner
prescribed.
16
17. Issue and redemption of preference shares
Section 55(3)
Where a company is not in a position to redeem any preference shares or to pay
dividend, if any, on such shares in accordance with the terms of issue (such shares
hereinafter referred to as unredeemed preference shares), it may, with the consent
of the holders of three-fourths in value of such preference shares and with the
approval of the Tribunal , on a petition made by it in this behalf, issue further
redeemable preference shares equal to the amount due, including the dividend
thereon, in respect of the unredeemed preference shares, and on the issue of such
further redeemable preference shares, the unredeemed preference shares shall be
deemed to have been redeemed.
17
18. Power of limited company to alter its
share capital
Proviso to Section 61(1)(b)
A limited company having a share capital may, if so authorised by its articles, alter
its memorandum in its general meeting to—
(a) increase its authorised share capital by such amount as it thinks expedient;
(b) consolidate and divide all or any of its share capital into shares of a larger
amount than its existing shares:
Provided that no consolidation and division which results in changes in the
voting percentage of shareholders shall take effect unless it is approved by the
Tribunal on an application made in the prescribed manner;
18
19. Further issue of share capital
Section 62(4) to(6)
Company to appeal to the NCLT in case of conversion of debentures issued or loan
obtained, from any government by a company, into shares of the company where
the terms and conditions of such conversion are not acceptable to the company.
19
20. Debentures
Section 71(9) to (11)
Debenture holders/trustees to file a petition to the NCLT in case a company fails
to redeem debentures or pay interest thereon, or in cases where the trustees feel
the company has insufficient funds and it is unlikely that the company would be
able to discharge the principal amount, when due. Further it grants power to the
NCLT to order the company to redeem the debentures forthwith on payment of
principal and interest due thereon or impose restrictions on the incurring of
further liability. If any default is made in complying with the order of the NCLT,
then the 2013 Act specifies penalties including imprisonment of officers of the
company.
20
21. Damages for fraud
Section 75
In case the company fails to repay the deposit or part thereof of any interest within
the specified time as per Section 74* of the 2013 Act (extension if any granted by
the NCLT) and it is proved that the deposit had been accepted to defraud the
depositor or for fraudulent purposes, Section 75 of the 2013 Act provides that
every officer of the company who was responsible for acceptance of such deposits
will be personally responsible without any limitation of liability for the
losses/damages incurred by the depositors.
*Section 74 of the 2013 Act is not yet notified.
21
22. Power of Tribunal to call annual general
meeting and meeting of members
Section 97, 98 and 99
NCLT has the Power to call Annual General Meeting (AGM) if default is made
in holding the AGM.
NCLT has the Power to call General Meeting other than AGM on the
application of Director or Member.
NCLT has the Power to provide Punishment for default in holding AGM and
General Meeting.
22
23. Inspection of minute-books of general
meeting
Section 119(4)
Under the 2013 Act, any member is entitled to request a copy of any minutes of
general meeting of a company. If any such request is refused by the company,
NCLT can, by order direct an immediate inspection of the minute-books of general
meeting or direct that the copy required should be sent to the person requiring it.
23
24. Re-opening of accounts or voluntary
revision of financial statements or Board’s
report
Section 130 and 131
Re-opening of accounts can be done based on order of court of competitive
jurisdiction or the NCLT on request of the statutory regulatory body or any person
in case the earlier accounts were prepared in a fraudulent manner or affairs of the
company were mismanaged during the relevant period, casting a doubt on the
reliability of financial statements.
Section 131 of the 2013 Act allows voluntary revision of financial statements or
Board’s report based on the NCLT order if directors of the company are of the
view that financial statements/Board’s report does not comply with the
requirements of the 2013 Act.
24
25. Removal, resignation of auditor and giving
of special notice
Second proviso to Section 140(4) and Section 140(5)
NCLT to order removal of an auditor of a company either through suo moto or an
application made by central government or any other person concerned, if he/she
had committed any fraud.
Such an auditor would not be eligible for appointment as an auditor of any
company for a period of five years against whom order has been passed by NCLT
for his/her removal from any company and he/she would also be liable for action
under Section 447.
25
26. Removal of Directors
Section 169(4)
A director who is removed from a company may make representation to the
company in the manner prescribed in this Section. The NCLT has been granted
powers to restrict such representations in cases where this option has been abused
by the director or for needless publicity for defamatory matters, etc.
26
27. Investigation into company’s affairs in
other cases
Section 213
NCLT can order an investigation into the affairs of company based on request by
shareholders or any other person in specified circumstances.
27
28. Investigation of ownership of company
Section 216(2)
NCLT to order investigation into the affairs of the company with regards to the
membership of the company and any other matters relating to the company.
28
29. Protection of employees during investigation
Section 218
An approval of the NCLT is required by the company for any action proposed
against an employee during the course of any investigation of the affairs/other
matters or during any proceedings under Section 210, 212, 213, 216, 219 and
Chapter XVI of the 2013 Act.
29
30. Freezing of assets of company on inquiry
and investigation and imposition of
restriction upon securities
Section 221 and 222
NCLT to pass orders for freezing of assets of a company or to order investigation
and imposition of restriction upon certain securities.
30
31. Actions to be taken in pursuance of
inspector’s report
Section 224 (5)
In case a fraud has taken place in the company and any director, key managerial
personnel, other officer of the company or any other person of the company or
entity has taken advantage due to such fraud, then the central government may
file an application to the NCLT for passing appropriate orders with regard to
disgorgement of such asset, property, or cash, as the case may be.
31
32. Prevention of oppression and
mismanagement
Section 241 to 244 [except Section 242(1)(b) and 242(2)(c) and (g)]
NCLT to pass orders for prevention of oppression and mismanagement by a
company.
32
33. Conducting a class action suit
Section 245
The 2013 Act has introduced the concept of class action to be instituted against the
company through which shareholders and depositors can seek to restrain the
company from committing an act which is ultra vires the articles or memorandum.
The NCLT Rules provide that while considering the admissibility of an application
made under this provision, the Tribunal can take into account additional grounds
such as:
Whether the class has so many members that joining them individually
would be impractical, making a class action desirable
Whether there are questions of law or fact common to the class
Whether the claims or defences of the representative parties are typical of
the claims or defences of the class
Whether the representative parties will fairly and adequately protect the
interests of the class.
33
34. NCLT and NCLAT
Section 415 to 433
These sections contains :
Provisions relating to operations, functioning and constitution of members of the
NCLT/NCLAT.
34
35. Transfer of certain pending proceedings
Section 434(1)(a) and (b) and 434(2)
Transition provisions for transfer of proceedings from CLB to NCLT.
Appeal against the order of CLB to High Court within 60 days of receipt of CLB
order.
Power of CG to make rules for transfer of such pending matters.
The CLB stands dissolved and proceedings/cases pending before the CLB will
stand transferred to the NCLT from the appointed date (1 June 2016).
35
36. Compounding of Offences
Section 441
The Companies 2013 Act provides powers to the NCLT relating to compounding
of various offences.
36
37. Dissolution of CLB and consequential
provisions
Section 466
Constitution of National Company Law Tribunal (NCLT)/National Company Law
Appellate Tribunal (NCLAT).
Transfer of employees of Company Law Board (CLB) to the National Company
Law Tribunal (NCLT)/National Company Law Appellate Tribunal (NCLAT).
37
38. Constitution of NCLT
Government has constituted 11 Benches of NCLT, out of which 1 will be the Principal
Bench, which shall preside at New Delhi. Benches constituted and their respective
territorial jurisdiction is as under:-
38
39. S.No Location Jurisdictional State / Union Territory
1. New Delhi Haryana, Rajasthan and Delhi
2. Ahmedabad Gujarat, Madhya Pradesh, Dadra and Nagar Haveli,
Daman & Diu
3. Allahabad Uttar Pradesh and Uttarakhand
4. Bengaluru Karnataka
5. Chandigarh Himachal Pradesh, Jammu and Kashmir, Punjab
and Chandigarh
6. Chennai Kerala, Tamil Nadu, Lakshadweep and Puducherry
7. Guwahati Arunachal Pradesh, Assam, Manipur, Mizoram,
Meghalaya, Nagaland, Sikkim and Tripura
8. Hyderabad Andhra Pradesh and Telangana
9. Kolkata Bihar, Jharkhand, Odisha, West Bengal, Andaman
and Nicobar Islands
10. Mumbai Chhattisgarh, Goa and Maharashtra
39
40. CONSTITUTION OF NCLT
National Company Law
Tribunal
Principal
Judge of a High Court for
5 Years
Judicial Member
: a present or Retired Judge of a High Court
or
: a District Judge for at least 5 years or
: Advocate with 10 years of practice
Technical Member
: Indian Corporate Law Service or Indian Legal
Service having 15 years of experience or
: PCS/PCA/PCWA having a present or
Retired Judge of a High Court or
: is a person of proven ability, integrity and
standing having special knowledge and
experience of not less than 15 years or
: a presiding officer of a Labour Court for
atleast 5 years
40
41. CONSTITUTION OF NCLAT
National Company Law
Appellate Tribunal
Chairperson
Judge of the Supreme Court OR the Chief Justice of
a High Court
Judicial Member
A present or Retired Judge of a
High Court or is a Judicial
Member of the Tribunal for 5
years.
Technical Member
A person of proven ability, integrity
and standing having special
knowledge and experience of not
less than 25 years.
41
42. Conclusion
The constitution of NCLT/NCLAT is a stair in the right direction and signifies the
inauguration of a new phase for corporate litigation in the country.
This step towards streamlining the corporate litigation reduced the burden of
courts and simplify efforts for a faster resolution of corporate disputes. This can
help improve the ease of doing business in India.
42