⚖️ NCLT – National Company Law Tribunal
NCLT stands for National Company Law Tribunal, a quasi-judicial body in India that handles corporate law matters, especially those related to companies, insolvency, and oppression/mismanagement.
🏛️ Purpose of NCLT
The NCLT is the adjudicating authority for matters related to:
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Company law (under the Companies Act, 2013)
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Insolvency and bankruptcy (under the IBC, 2016)
It consolidates the powers previously exercised by multiple forums like the Company Law Board (CLB), Board for Industrial and Financial Reconstruction (BIFR), and High Courts (in company matters).
📜 Governing Laws
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Companies Act, 2013
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Insolvency and Bankruptcy Code, 2016 (IBC)
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Allied Rules and Regulations
👨⚖️ Key Powers and Jurisdiction of NCLT
| Area | Jurisdiction |
|---|---|
| Insolvency Resolution | Corporate Insolvency Resolution Process (CIRP) for companies and LLPs |
| Oppression and Mismanagement | Shareholders can file under Sections 241–244 of Companies Act |
| Winding Up | NCLT can order winding up of a company |
| Restoration | Restoration of struck-off companies |
| Merger & Amalgamation | Approves schemes under Companies Act |
| Conversion of Public to Private | Approves such applications |
| Reduction of Share Capital | Approves capital reduction applications |
🧾 Who Can File Cases in NCLT?
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Creditors (financial & operational) – under IBC
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Corporate debtors – voluntarily initiating insolvency
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Shareholders or members – for oppression/mismanagement
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Companies – for mergers, reconstructions, etc.
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MCA/ROC – regulatory matters
📌 Key Sections and Processes
| Section / Code | Purpose |
|---|---|
| IBC Sec 7 | Application by financial creditor |
| IBC Sec 9 | Application by operational creditor |
| IBC Sec 10 | Application by corporate debtor |
| Sec 241-244 (Companies Act) | Oppression & mismanagement |
| Sec 230-232 (Companies Act) | Schemes of compromise, arrangement, merger |
🧭 Appeal from NCLT
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Appeals from NCLT go to the National Company Law Appellate Tribunal (NCLAT)
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Further appeal lies to Supreme Court of India on a question of law
🧠 Difference Between NCLT and DRT
| Feature | NCLT | DRT |
|---|---|---|
| Governing Law | Companies Act, IBC | RDB Act, SARFAESI |
| Main Function | Corporate law & insolvency | Debt recovery for banks |
| Who files | Creditors, debtors, shareholders | Banks/financial institutions |
| Appeal lies to | NCLAT | DRAT |
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