Constitution, Powers and Jurisdiction of National Company Law Tribunal

The National Company Law Tribunal (NCLT) is a quasi-judicial body established under the Companies Act, 2013, in India. It primarily deals with matters related to company law, corporate governance, insolvency, and liquidation.

Constitution of NCLT

1. Composition: The NCLT is composed of judicial and technical members who are appointed by the Indian government.
2. Jurisdiction: It is organized into multiple benches, with each bench consisting of at least one judicial member and one technical member. The number and location of benches can be determined by the Central Government.

Powers of the National Company Law Tribunal (NCLT)

1. Companies Act Matters:
   • Approving the incorporation of companies.
   • Adjudicating matters related to mergers, amalgamations, and demergers.
   • Resolving corporate governance and management disputes.
   • Adjudicating matters related to oppression and mismanagement of companies.
2. Insolvency and Bankruptcy Code (IBC):
   • Admitting or rejecting insolvency petitions.
   • Appointing interim resolution professionals.
   • Overseeing the resolution process for insolvent companies.
3. Winding Up:
   • Hearing and deciding on voluntary and involuntary winding-up petitions.
4. Class Action Suits:
   • Hearing class action suits filed by shareholders or depositors in cases of oppression and mismanagement.
5. Conversion of Companies:
   • Approving the conversion of one type of company into another (e.g., private to public).
6. Appeals:
   • NCLT decisions can be appealed to the National Company Law Appellate Tribunal (NCLAT) and, in certain cases, to the Supreme Court of India.
7. Mediation and Conciliation:
   • Referring cases for mediation and conciliation to promote settlements.
8. Compounding of Offenses:
   • Compounding certain offenses under the Companies Act, subject to conditions.
9. Other Matters:
   • Handling other matters related to company law and corporate disputes as specified by the Central Government.

Jurisdiction of the National Company Law Tribunal (NCLT)

1. Geographical Jurisdiction:
   • NCLT operates through various benches across the country, and the jurisdiction of each bench is defined by the Central Government. The number and location of benches can be determined based on the caseload and regional requirements.
2. Company Matters:
   • Jurisdiction over matters concerning the Companies Act, including company incorporation, corporate governance issues, mergers, and amalgamations.
3. Insolvency and Bankruptcy:
   • Authority to handle insolvency and liquidation proceedings under the Insolvency and Bankruptcy Code, 2016.
4. Winding Up:
   • The power to adjudicate and decide on voluntary and involuntary winding-up petitions for companies.
5. Class Action Suits:
   • Jurisdiction to hear and resolve class action suits filed by shareholders or depositors in cases of oppression and mismanagement of companies.
6. Conversion of Companies:
   • Authority to approve or reject applications for the conversion of one type of company into another.
7. Appeals:
   • Authority to adjudicate on appeals against NCLT decisions, with further appeal options available at the NCLAT and the Supreme Court levels.
8. Mediation and Conciliation:
   • The option to refer cases for mediation and conciliation to encourage settlements between parties.
9. Compounding of Offenses:
   • Power to compound certain offenses under the Companies Act.
10. Other Matters:
    • Handling any other matters related to company law and corporate disputes as designated by the Central Government.