NCLT
National Company Law Tribunal
In order to deal with the industrialization boom, the Indian government has created a number of regulations. The National Company Law Tribunal was established by the government on June 1st, 2016, on the advice of the Justice Eradi Committee, to adjudicate matters pertaining to company disputes of a civil character under The Companies Act, 2013. It was established in accordance with Companies Act of 2013 Section 408. According to the 2016 Insolvency and Bankruptcy Code, it serves as the deciding authority in cases involving the insolvency resolution of businesses and limited liability partnerships.
National Company Appellate Tribunal
The National Company Appellate Tribunal is the body responsible for hearing appeals related to NCLT rulings. In essence, it serves as a second level of appeals for the NCLT's mistakes. The Supreme Court may also hear an appeal of the Appellate Tribunal's ruling. Any party may appeal to the Appellate Tribunal if they are unhappy with the NCLT's decision. The Appellate Tribunal will consider the Tribunal's ruling once again and either set it aside, alter it, or uphold it.
The distinction between NCLT and NCLAT
Why was NCLT established?
The National Company Law Tribunal was established under The Companies Act of 2013's Section 408 for the following purposes-
- Disposing off the cases that are now being heard by the Company Law Board (CLB).
- To oversee the High Court's jurisdiction over proceedings relating to winding up, restructuring, compromise, etc. The NCLT's establishment has aided in meeting the demands of the corporate sector. Additionally, it helped to advance the interests of banks, financial sector entities, and other stakeholders.
The National Company Law Tribunal's purpose
The NCLT combines the High Court's winding up or restructuring authority with that of the Company Law Board, the Board for Industrial and Financial Reconstruction (BIFR), and the Appellate Authority for Industrial and Financial Reconstruction (AAIFR). The Tribunal will therefore have the authority to oversee all Indian firms founded in accordance with the 2013 Companies Act.
The National Company Law Tribunal's advantages
- As the only court in India with a focus on businesses, NCLT enjoys exclusive jurisdiction.
- It will lessen the early prevalence of several lawsuits.
- Its several branches make the case registration process simpler.
- The Tribunal is made up of both judicial and technical members. It supports the decision-making process.
- The time required to wind up a company has been shortened by the NCLT.
- The number of cases will decline with prompt case resolution.
Specific powers of NCLT
The government moved all of the Company Law Board's authority to the National Company Law Board through a notification dated June 1st, 2016. The NCLT is free to investigate any stage of cases that are currently before the CLB.
Powers of the NCLT
- Companies’ registration
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Concerning the transfer of shares
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The authority to inquire
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Authority to freeze company assets
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Corporate Debt Restructuring
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Conversion of Public Limited Company to Private Limited Company (CDR)
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Deposits
Preserving shareholders' interests
Combining of offenses
The National Company Law Tribunal's appeal filing process
- In 2016, the Ministry of Corporate Affairs released the NCLT Rules and NCLAT Rules, following the formation of the NCLT and the NCLAT. It outlines the steps for submitting an appeal to both Tribunals. The following criteria must be met in order to file an appeal with The National Company Law Tribunal-
- The filing paperwork must be in English. An English translation must be filed if the document is in another language.
- Legal- paper should be used for the typewritten and double-spaced papers, with top, right, and left margins of 4 cm, 2.5 cm, and 5 cm, respectively.
- In a paper book format, the document should be properly paginated and indexed.
- Every appeal must be submitted in three copies.
- An index detailing the information and the fee paid should be included in each document in three copies.
- The opposing party shall receive a copy of the appeal.
- Additionally, a certified true copy of the resolution granting permission to sign, verify, and implement on the company's behalf must be enclosed.
- The notification of admission in Form NCLT-2 must be submitted with an appeal in Form NCLT-1.
- The Proceeding Tile and Heading must be in Form No. NCLT-4.
- The petition or application must be verified by an affidavit in accordance with Form No. NCLT.6.
- The motion must be submitted using Form No. NCLT.3
- The opposite party must get notice in accordance with Form No. NCLT.5
- An advertising regarding the petition or application must be published in an English-language and regional newspaper using Form No. NCLT.3A. If the advertisement is run, it must be posted on the company’s website.
- An individual must file a vakalatnama (memorandum of appearance) in Form No. NCLT.12 in order to make an appearance, either in person or through a designated representative.
- Until and unless his name is entered in the Register of Interns, the authorized representative's interns lack the authority to appear before the Tribunal. The authorized representative must submit Form NCLT.10 with the application for intern registration.
- Rules 66 through 88 outline a unique process that must be followed when submitting an application under specific circumstances. These comprise the application's contents, annexure-list B's accompanying documents, and the application's advertisement.
- Within two years, the application for the final order's rectification must be submitted using Form No. NCLT.9.
- Within 30 days, the certified copy of the NCLT order must be filed with the ROC in Form No. INC-28 together with fees of Rs. 500.
Documentation needed to file an appeal with the Tribunal
- Documents necessary by Section 252 of the Companies Act to file an appeal before the NCLT are-
- Index of the petition or appeal
- Admission notice
- Brief summary
- Dates and Events of note
- Application or petition outlining the reasons
- Each Petition must be written on stamp paper costing Rs. 10 and be accompanied by an affidavit in Form No. NCLT 6.
- The authorized representative must appear by submitting Form No. NCLT 12 (Vakalatnama or Memorandum of Appearance).
- Certified copy of the resolution's extract in the author's or authorized representative's favour
- Power of Advocate
- Inventories of the business
- Financial statements that have been audited by the business filing the petition for the defaulted period
- Notices of ROC to relevant company,
- Certificate of Incorporation, Memorandum and Article of association Demand draft for the required fees
- Any additional document, such as an ITR, a VAT receipt, a bank statement, or other proof that the business was open
Appealing to the NCLT using Estabizz
- After you submit a question, a representative from our company will contact you and assign a lawyer to your case.
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Our advocate will get in touch with you, go over the entire process with you, and comprehend the specifics of your case.
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The advocate will write an appeal when the goals are stated.
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After being written, an appeal will be submitted to the NCLT.
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There will be an initiation of legal action.
Why should you choose Estabizz?
- Free advice or inquiries
- Renounced legal experts is available to you.
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Complete services
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Assistance with the National Company Law Tribunal appeal submission
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We will continue to support you and be at your disposal for the duration of the case.
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The distinction between NCLT and NCLAT
Why was NCLT established?
The National Company Law Tribunal’s purpose
The National Company Law Tribunal’s advantages
Specific powers of NCLT
Powers of the NCLT
The National Company Law Tribunal’s appeal filing process
Documentation needed to file an appeal with the Tribunal
Appealing to the NCLT using Estabizz
Why should you choose Estabizz?
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