Friday, June 3, 2016

"NCLT constituted with e ect from 1-6-2016"

The Ministry of Corporate A airs (MCA) has issued notifications on 1st June, 2016, constituting the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) with e ect from 1st June, 2016 for the implementation of the provisions of Companies Act, 2013.

Hon’ble Justice S. J. Mukhopadhaya, Judge (Retd), Supreme Court of India has joined as the Chairperson of NCLAT while Hon’ble Justice M. M. Kumar, Judge (Retd), has joined as the President, NCLT.

Initially, the NCLT will have eleven branches – two in New Delhi and one each in Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata and Mumbai. Overall NCLT will have 21 benches and 63 members.

The NCLT will replace the Company Law Board (CLB). NCLT will handle of certain cases and matters that are currently being heard in the High Courts (such as Winding Up, Amalgamations, Reduction of Capital, etc) and Board for Industrial and Financial Reconstruction (BIFR) in matters relating to Sick Company. However, the provisions of the Companies Act, 2013, which grant it various powers and authority, have not yet been notified by the Central Government. The road map for the implementation of these sections, along with the procedures and conduct rules are yet to be provided by the Ministry.

With the constitution of the NCLT and the NCLAT, the Company Law Board shall stand dissolved. Under Bankruptcy Code NCLT and Debt Recovery Tribunal (DRT) are the adjudicating authorities. NCLT shall resolve insolvency cases of corporate body such as companies and LLPs, DRT will handle insolvency cases of individuals.

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