NCLAT and NCLT
NCLAT and NCLT Lawyer in Delhi
The National Company Law Tribunal (NCLT) is a quasi-court for company-related cases. The NCLT hears cases from any person who is a creditor to any company registered under the Companies Act, 2013.
NCLT is now the main tribunal in India that makes legal decisions regarding the bankruptcy of a company. It looks into cases where Limited Liability Partnerships (LLPs), companies and corporations may be considered insolvent. The NCLT’s jurisdiction extends not only to Insolvency and Bankruptcy matters, but also to any other disputes arising between or within a Company registered under the Companies Act, 2013.
Examples of cases that can be brought forward to the NCLT are:
- A company or LLPs that defaults and winding up proceedings are needed to be initiated against them.
- A person who wants to recover money under the Insolvency and Bankruptcy Code (IBC)
- A company which wants to go into a voluntary winding up.
For the time being, the NCLT, does not include individual bankruptcy or income tax related enquiries.
What is NCLT or the National Company Law Tribunal?
Over the years, major changes in how business and corporations work have taken place. A new Companies Act of 2013 was set up to replace the old Companies Act of 1956. This led to several changes for law and judicial processes for corporates in India.
First, Company Law Board was abolished, and in its place, the National Company Law Tribunal was set up. The National Company Law Appellate Tribunal (NCLAT) was set up to hear appeals from NCLT cases, which now also has jurisdiction over appeals from the Competition Commission of India (CCI).
High Courts now no longer have jurisdiction over matters related to companies incorporated under the Companies Act, 2013 for many cases of corporate civil disputes. The NCLT has been vested with judicial powers similar to those of a Court of Law. This, in turn, has provided clarity to individuals looking for legal remedies from the Insolvency and Bankruptcy Code. It has also taken pressure off of Indian courts and aims at providing resolutions within a span of 180 to 270 days..
In an effort to streamline company law, the NCLT has absorbed the role of 4 different tribunals.
These are the Board for Industrial and Financial Reconstruction (BIFR), Appellate Authority for Industrial and Financial Reconstruction (AAIFR), Official Liquidator (OL), and as previously mentioned, the Company Law Board (CLB).
Geographically, there are 14 benches of the NCLT across India. New Delhi has six benches, one of which is the Principal Bench.
Other NCLTs are in Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai, Jaipur, Cuttack and Amaravati.
The National Company Law Appellate Tribunal that oversees appeals related to NCLTs is also based in Delhi, India.
Powers of NCLT
The National Company Law Tribunal is a government initiative to make business in India smoother and more efficient. The NCLT, therefore, has a large scope of legal power. Here are some examples of what the NCLT can do:
- Decide if an executive management or director-level position in any company is being .
- Designated to the right candidate.
- Take action against complaints about shares, equity, and securities being abused, such as them.
- Being incorrectly issued or transferred
- Investigate the true ownership of a company and vested interests in Board of Directors.
- Direct a company to pay out its creditors when the company has failed to do so.
What are some cases that the NCLT handles?
The NCLT has recently been in the news with high-profile cases. The range and scope of NCLT cases is vast. Here are a few examples of cases being presented by NCLT lawyers in Delhi:
- The company refuses to furnish a copy of their trust deed. A company member is entitled to approach the NCLT.
- The company refuses to register the transmission of securities or interest of a company member. The member can approach the NCLT for a rectification of the Register of Members on these grounds, among others.
- The company hasn’t repaid its matured deposit. The member of the company can apply for the NCLT to direct the company to do so.
- A company member has grounds to believe that the company does not have enough assets to pay out the principal amount when it becomes due. The company member approaches the NCLT to file a petition.
In addition, the NCLT handles documentation-related company law application as well. These applications may be made by persons seeking transparency into a company’s operations. They will be able to get copies of documents such as the following:
- A company’s returns
- Minute Books
- Balance sheets
- Auditor’s reports
Persons making an application with the NCLT can also request an inspection and action against defaulting companies.
Who can file cases at the NCLT?
The National Company Law Tribunal allows a few classes of professionals to appear. These include Advocates and Lawyers, Company Secretaries and Chartered Accountants.
While there are other professionals available, hiring a lawyer in Delhi is the most popular option for clients who want to file their case at the NCLT. The best NCLT advocates in Delhi with a successful law practice have corporate law experience. They also have a good criminal law practice record in Courts, all the way from district courts of Delhi to the Delhi High Court. Civil litigation lawyers are well versed with legal issues and petitions.
Additionally, the best lawyers for NCLT in Delhi work with transparent retainerships. You will get expert legal advice by having someone from the legal profession to help your NCLT petition.
You may have questions about whether your matter comes under the NCLT’s jurisdiction. Our law firm will be happy to provide that information to you for free, and will enable you to make an informed decision. You may reach us on XXX or contact us here.
Relevant Sections under NCLT
These sections of the Companies Act, 2013, may be relevant to you.
- section 2(41) change in financial year
- section 7(7) company has been incorporated by furnishing false or incorrect information or fraud
- section 14(1) conversion of public company into a private company
- section 55(3) issue of further redeemable preference shares
- section 58(3) refusal of registration of shares
- section 59 rectification of register of members
- section 64(4) fixing terms and conditions for conversions of debentures and shares
- section 71(9) debenture-trustees
- section 71(10) failure of redeeming of debentures
- section 73(4) repayment of deposit or interest
- section 74(2) further time to the company to repay deposits
- section 97(1) calling of Annual General meeting
- section 98(1) calling of general meeting of company other than Annual General meeting
- section 119(4) pass an order directing immediate inspection of minute’s books or directing a copy thereof be sent forthwith to person requiring it
- section 130(1) re-opening of books of accounts, if made by any person other than Central Government, Income Tax authorities, SEBI or any other statutory regulatory body or authority
- section 131(1) by company for voluntary revision of financial statement on Board’s report
- section 140(4) not sending the copy of representation of auditor to the members
- section 140(5) change of auditors
- section 169(4) not sending copies of representation
- section 213 investigation into company affairs
- section 218(1) action proposed against employee
- section 222(1) imposition of restriction on securities
- section 241(1) cases of oppression and mismanagement
- section 242(4) regulating the conduct of the company
- section 243(1)(b) appointment of Managing Director
- section 245 Class action suits
- section 441 compounding of certain offences
Other applications are allowable by NCLT. We will be happy to tell you if your petition comes under NCLT’s jurisdiction. You may reach us on XXX or contact us here.