National Company Law Appellate Tribunal

National Company Law Appellate Tribunal Latest News

Recently, the National Company Law Appellate Tribunal (NCLAT) upheld NCLT powers to direct defreezing of demat accounts in insolvency cases and dismissed Bombay Stock Exchange’s appeals. 

About National Company Law Appellate Tribunal

• It is a quasi-judicial body constituted under the Companies Act, 2013.
• It was established to hear appeals against the decisions of the National Company Law Tribunal (NCLT).
• Objectives: To promote timely corporate dispute resolution, ensure transparency, and improve efficiency in insolvency and corporate governance matters.

‹ ›

Functions of NCLAT

• Hearing appeals against orders of the Insolvency and Bankruptcy Board of India (IBBI). 
• Hearing appeals against orders of the Competition Commission of India (CCI).
• Hearing appeals related to the National Financial Reporting Authority (NFRA).
• Giving advisory opinions when legal issues are referred by the President of India
• Headquarters: New Delhi.
• Composition: It includes a Chairperson, along with Judicial and Technical Members, all appointed by the Central Government based on expertise in law, finance, accountancy, and administration.

Powers and Procedure

• NCLAT can regulate its own procedure and possess powers equivalent to a civil court under the Civil Procedure Code, 1908.
• It can summon witnesses, receive affidavits, enforce production of documents, and issue commissions.
• Orders passed by NCLAT are enforceable like civil court decrees.
• Appeals against NCLAT orders can be filed in the Supreme Court of India.
• Civil courts have no jurisdiction over matters within the purview of NCLAT.
• No court or authority can grant injunctions against any action taken by NCLAT under its legal authority.
• Timely disposal: NCLAT is required to dispose of appeals within six months from the date of receipt to ensure swift resolution.

Source: MC