National Company Law Tribunal (NCLT)

About National Company Law Tribunal:

• It is a quasi-judicial authority incorporated for dealing with corporate disputes that are of civil nature arising under the Companies Act,2013.
• It was constituted on 1 June 2016 under the Companies Act, 2013.
• It was established based on the recommendation of the Balakrishna Eradi committee on law relating to the insolvency and the winding up of companies.
• Composition: It shall consist of a President and such number of Judicial and Technical Members as may be required.
• What are the Powers of NCLT?
  • It is not limited or bound by the rules laid down in the Code of Civil Procedure and is guided by the principles of natural justice, subject to the other provisions of this Act and of any rules that are made by the Central Government.
  • It can enforce any order that it gives in the same manner as a court would enforce it.
  • It has the power to scrutinize its own orders.
  • It has the power to regulate their own procedure.
  • It is the adjudicating authority for the insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.

Q1: What is Insolvency in Business?

Insolvency is a state of financial distress in which a person or business is unable to pay their debts. Insolvency in a company can arise from various situations that lead to poor cash flow. When faced with insolvency, a business or individual can contact creditors directly and restructure debts to pay them off.

Source :SC ruling brings NCLT under-staffing to the fore