NCLT – National Company Law Tribunal

 

⚖️ 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.

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🏛️ Purpose of NCLT

The NCLT is the adjudicating authority for matters related to:

1. Company law (under the Companies Act, 2013)

2. 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).

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📜 Governing Laws

• Companies Act, 2013

• Insolvency and Bankruptcy Code, 2016 (IBC)

• Allied Rules and Regulations

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👨‍⚖️ 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

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🧾 Who Can File Cases in NCLT?

• Creditors (financial & operational) – under IBC

• Corporate debtors – voluntarily initiating insolvency

• Shareholders or members – for oppression/mismanagement

• Companies – for mergers, reconstructions, etc.

• MCA/ROC – regulatory matters

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📌 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

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🧭 Appeal from NCLT

• Appeals from NCLT go to the National Company Law Appellate Tribunal (NCLAT)

• Further appeal lies to Supreme Court of India on a question of law

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🧠 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

DRT – Debt Recovery Tribunal

 

⚖️ DRT – Debt Recovery Tribunal

DRT stands for Debt Recovery Tribunal, a specialized tribunal in India that deals with cases related to recovery of debts due to banks and financial institutions.

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🏛️ Purpose of DRT

The primary objective of DRT is to expedite the recovery of debts of ₹10 lakhs or more by banks and financial institutions under a streamlined process.

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📜 Governing Law

• The Recovery of Debts and Bankruptcy Act, 1993 (RDB Act)
  (formerly known as RDDBFI Act)

• Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

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👨‍⚖️ Who Can File in DRT?

• Only banks and financial institutions can initiate proceedings in DRT.

• Borrowers/guarantors can also approach DRT to challenge bank actions (e.g., under Section 17 of the SARFAESI Act).

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🧾 Key Features

Feature	Details
Jurisdiction	For debts of ₹10 lakh or more
Who can file?	Banks, Financial Institutions
Reliefs sought	Recovery of loan, possession of secured assets, etc.
Right to appeal	Appeal lies to DRAT (Debt Recovery Appellate Tribunal)
Time-bound process	Tribunals aim to dispose of cases in 6 months
Execution	DRT can execute its own orders like a civil court

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🧑‍💼 Common Proceedings

1. Original Application (OA) – Filed by banks for recovery

2. Appeals against SARFAESI measures – Filed by borrowers under Section 17

3. Interim applications – For stay or injunction

4. Appeal to DRAT – Within 30 days of DRT's order (subject to deposit)

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📌 Important Sections under DRT Law

Section	Description
Sec 19	Filing of Original Application (OA) by bank/FI
Sec 17 of SARFAESI	Remedy for borrower to challenge possession/action of bank
Sec 20	Appeal to DRAT (Debt Recovery Appellate Tribunal)

Meaning of "Suit" in Law

 

⚖️ Meaning of "Suit" in Law

A "suit" is a formal legal proceeding initiated by one party (the plaintiff) against another (the defendant) in a civil court for the enforcement or protection of a legal right or to obtain a legal remedy.

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📚 Definition (General)

A suit is a civil action brought before a court of law in which a plaintiff seeks a remedy for an injury or enforcement of a right against a defendant.

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🧾 Examples of Civil Suits

• Suit for recovery of money

• Suit for possession of property

• Suit for injunction (to stop someone from doing something)

• Suit for specific performance of a contract

• Suit for declaration (e.g., declaring a sale deed void)

• Suit for partition of ancestral property

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🚫 Civil Suit vs. Criminal Case

Aspect	Civil Suit	Criminal Case
Purpose	Enforcement of private rights	Punishment for an offense
Filed by	Plaintiff (private party)	State/prosecution
Examples	Property disputes, breach of contract	Theft, assault, murder
Result	Decree or compensation	Conviction or acquittal

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📜 Legal Reference

In India, civil suits are primarily governed by the Code of Civil Procedure, 1908 (CPC).

the suit valuation clause and determine jurisdiction and court fees

 the suit valuation clause and determine jurisdiction and court fees

Nature of the suit
(e.g., recovery of money, possession, specific performance, declaration, injunction, partition, etc.)

Value involved in the dispute
(e.g., Rs. 5,00,000, or value of the property)

Reliefs claimed
(e.g., money decree, injunction, cancellation of document, etc.)

Location of the property/transaction/defendant
(for territorial jurisdiction)

State where the suit will be filed
(for applicable Court Fees Act, as they vary by state)

Suit Valuation in Civil Cases

 

🧾 Suit Valuation in Civil Cases

Suit valuation refers to the process of assigning a monetary value to the subject matter of a civil suit for two purposes:

1. Jurisdictional Value – to determine which court (Civil Judge Jr./Sr./District Judge) has the authority to hear the case.

2. Pecuniary Value for Court Fee – to calculate the proper court fee payable under the Court Fees Act (varies from state to state).

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📌 How to Write the Suit Valuation Clause in a Plaint

Here’s a standard clause you can adapt:

Suit Valuation:

That the value of the subject matter of the present suit for the purpose of jurisdiction and court fee is fixed at Rs. [amount], on which appropriate court fee of Rs. [amount] is paid as per the provisions of the Court Fees Act, [State Amendment, if applicable]. The Hon’ble Court has pecuniary and territorial jurisdiction to try and decide the present suit.

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📚 Examples Based on Type of Suit

Type of Suit	Basis of Valuation	Court Fee
Money recovery	Amount claimed (e.g., Rs. 5,00,000)	Ad valorem
Specific performance	Sale consideration or market value, whichever is higher	Ad valorem
Possession of immovable property	Market value of the property	As per law
Injunction	Plaintiff's discretion, subject to court's approval	Fixed fee
Declaration without consequential relief	Nominal amount (e.g., Rs. 1,000)	Fixed fee
Declaration with consequential relief (e.g., cancellation of a deed)	Market value or value of the transaction	Ad valorem

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⚠️ Important Tips

• Always refer to your State-specific Court Fees Act/Rules (e.g., Maharashtra Court Fees Act, Tamil Nadu Court Fees and Suits Valuation Act, etc.)

• Courts can question improper valuation or underpayment of court fees.

• If you're unsure of the exact market value (like in property suits), it’s advised to attach a valuation report or circle rate evidence.

Writing a plaint

 

Writing a plaint (a formal written complaint or statement of claim filed in a civil court) involves a structured format that complies with the Civil Procedure Code, 1908 (CPC), particularly Order VII. Here's a step-by-step guide on how to draft a plaint in India:

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🧾 Standard Format of a Plaint

1. Title/Cause Title

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IN THE COURT OF THE CIVIL JUDGE AT [Location]

Civil Suit No. ___ of 20__

[Name of Plaintiff],  
S/o / D/o / W/o _______,  
Residing at ___________,  
...Plaintiff

VERSUS

[Name of Defendant],  
S/o / D/o / W/o _______,  
Residing at ___________,  
...Defendant

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2. Introductory Paragraph

Mention the capacity of the plaintiff and the defendant, and jurisdictional facts:

The Plaintiff respectfully submits as under:

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3. Body of the Plaint (Facts of the Case)

Break this into numbered paragraphs:

1. Details of Plaintiff and Defendant
   (Names, addresses, relationships if relevant)

2. Cause of Action
   Clearly explain what happened, when and how the cause of action arose.

3. Jurisdiction
   Show why the court has jurisdiction (subject matter and territorial).

4. Relief Sought
   State what the plaintiff is asking the court to do (e.g., compensation, injunction, specific performance, etc.)

5. Valuation & Court Fees
   State the valuation of the suit and the court fees paid.

6. Limitation
   State that the suit is filed within the period of limitation.

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4. Prayer Clause

PRAYER

In view of the above, the Plaintiff prays that this Hon’ble Court may be pleased to:

a) Pass a decree in favour of the Plaintiff and against the Defendant for [mention relief sought];

b) Grant any other relief(s) as this Hon’ble Court deems fit and proper in the interest of justice;

c) Award costs of the suit.

Place: __________  
Date: ___________  

[Signature]  
Plaintiff

Through Counsel:  
[Advocate’s Name]  
[Enrollment No.]  
[Address & Contact]

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5. Verification

VERIFICATION

I, [Plaintiff’s Name], the Plaintiff above named, do hereby verify that the contents of paragraphs __ to __ are true to my knowledge and belief, and the rest are believed to be true based on legal advice.

Verified at [Place] on this ___ day of _______ 20__.

[Signature]  
Plaintiff

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✅ Checklist Before Filing

• Proper court jurisdiction chosen

• Limitation period adhered to

• Court fees affixed

• Relevant documents attached as annexures

• Vakalatnama filed if represented by an advocate

• Verification properly signed

written statement

 

A "written statement" is a formal response submitted by the defendant in a civil suit in reply to the plaint/petition filed by the plaintiff/complainant. It contains the defendant’s version of facts, denials, and any legal defenses they wish to raise. It is governed under Order VIII of the Code of Civil Procedure, 1908 (CPC) in India.

Here is a general format/template of a written statement in civil proceedings:

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IN THE COURT OF [Name of the Judge] AT [Location]
Civil Suit No. [XXXX] of [Year]

IN THE MATTER OF:
[Plaintiff’s Name],
...Plaintiff

VERSUS

[Defendant’s Name],
...Defendant

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WRITTEN STATEMENT ON BEHALF OF THE DEFENDANT

MOST RESPECTFULLY SHOWETH:

1. That the defendant denies each and every allegation made in the plaint unless specifically admitted herein.

2. That paragraph-wise reply to the plaint is as under:

Preliminary Objections (if any):

a. That the suit is not maintainable in its present form.
b. That the plaintiff has not approached this Hon’ble Court with clean hands.
c. That the suit is barred by limitation (if applicable).
d. [Any other legal objection]

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PARA-WISE REPLY:

Para 1: The contents of para 1 of the plaint are wrong and denied. It is submitted that... [Insert rebuttal].

Para 2: The contents of para 2 are partly correct to the extent that... [Admit/deny/explain].

Para 3: [Repeat as needed for all paragraphs in the plaint]

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DEFENSES:

3. That the plaintiff has suppressed material facts.

4. That the defendant acted in good faith and in accordance with law.

5. That the plaintiff is not entitled to any relief as claimed.

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PRAYER

In view of the foregoing, the Defendant most respectfully prays that this Hon’ble Court may be pleased to:

a. Dismiss the suit of the Plaintiff with costs;
b. Pass such other and further orders as this Hon’ble Court may deem fit and proper in the interest of justice.

AND FOR THIS ACT OF KINDNESS, THE DEFENDANT AS IN DUTY BOUND SHALL EVER PRAY.

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[Place]
[Date]

[Signature of Defendant]
[Name of Advocate, if any]
Counsel for the Defendant