National Company Law Tribunal (NCLT) is the adjudicating authority under the admit of Insolvency and Bankruptcy Code whose appellate authority under Section 61 of IBC is known as National Company Law Appellate Tribunal (NCLAT) which was established on 1st June, 2016. NCLAT plays a very important role being the appellate authority against the decisions taken by the Competition Commission of India (CCI) as per Section 410 of Companies Act, 2013 which is an amendment brought in 26th May, 2017. They get their exercising authority under Section 408 and 410 of Companies Act, 2013 and more importantly it came into existence due to Justice Eradi Committee. Under Section 245 anyone can file their case in the NCLT with five thousand rupees as court fees.
These quasi-judicial authorities were brought into existence to share the burdens of High Courts in such corporate matters. The incorporation of Insolvency and Bankruptcy Code (IBC), 2016 was the wisest step taken by Indian Judiciary which not only added a remarkable page to Indian history but also brought a new boom in industrialization era in India. With the commencement of this act now corporate investors are saved. Indian judiciary handed over the power to the creditors. This gives more importance to the setting up of NCLT and NCLAT in India.
Since, 1947 India is still developing country. It is running faster and faster but is never coming in the track of developed country. This is because of certain scams like 2G Spectrum scam, Satyam Computers Scam, Harshad Mehta scam, Kingfisher’s scam etc which is shaking the economic stability of the country. Hence, incorporation of IBC was the wisest decision.
They help a lot in reducing multiplicity of proceedings in cases which is very common in India. They provide speediest justice because they have the time limit of three months within which they have to dispose of the cases or they can delay up to three months with sufficient amount of reasons. India lacks behind in doing speedy justice but NCLT and NCLAT has taken baby steps in creating different era in the legal system. The speedy disposal of cases usually saves a lot amount of time and energy and most importantly justice is provided utmost earlier. Justice delayed is justice denied concept is there but Indian courts usually don’t follow them in general. These quasi-judicial bodies work according to rules and regulations laid down in Civil Procedural code which is generally based upon the principles of natural justice but the civil courts cannot interfere with any of the business of them.
The greatest advantage behind establishment of these forums that it created a new opportunity for the practising company secretaries. They can directly appear before the tribunals regarding the matters of amalgamation, mergers, demergers, buy backs, compromise, arrangements of the company’s shares etc. Even they can appear before the NCLTs and NCLATs for the revival and rehabilitation of sick companies timely. They can even represent the winding cases of the companies. Even they can be appointed as a technical member of the NCLT because their opinion will act as an expert advice if they have 15years of prior experience.
It seems these tribunals are getting overburdened with the recent statistical study because only 11 tribunals are operative in India. Moreover, the practising company secretaries only know the practical and theoretical concept of the subject matter but they don’t know the exact methodology of the courts. So that’s again another tedious job for them to get accommodated into the system with such small amount of time. Even these tribunals take cases of public interest (PILs) in the corporate matters which is another hectic module. Therefore, these forums are still figuring their way out to get into the picture.