What is the NCLT?

The NCLT is a statutory body that handles cases related to:

1. Corporate Disputes: Shareholder disputes, oppression, and mismanagement.

2. Insolvency and Bankruptcy: Corporate insolvency resolution and liquidation.

3. Mergers and Acquisitions: Approval of schemes of arrangement, amalgamation, and demerger.

4. Compliance and Governance: Non-compliance with the Companies Act, 2013, and related laws.

The NCLT replaced the Company Law Board (CLB) and certain powers of the High Courts to streamline corporate dispute resolution.

Key Areas of NCLT Matters

1. Insolvency and Bankruptcy Proceedings:

The NCLT adjudicates cases under the Insolvency and Bankruptcy Code (IBC), 2016.

It initiates the Corporate Insolvency Resolution Process (CIRP) and approves resolution plans.

It also handles liquidation proceedings for companies unable to resolve insolvency.

2. Oppression and Mismanagement:

The NCLT addresses complaints from shareholders regarding oppression or mismanagement by the company’s management.

Remedies include changes in management, buyback of shares, or winding up of the company.

3. Mergers, Amalgamations, and Demergers:

The NCLT approves schemes of arrangement, mergers, and demergers under Sections 230-232 of the Companies Act, 2013.

It ensures that such schemes are fair and in the interest of stakeholders.

4. Winding Up of Companies:

The NCLT orders the winding up of companies unable to pay debts or found to be operating against public interest.

5. Restoration of Struck-Off Companies:

The NCLT can restore companies that have been struck off from the Registrar of Companies (ROC) due to non-compliance.

6. Class Action Suits:

The NCLT handles class action suits filed by shareholders against the company or its directors for fraudulent or unlawful acts.

7. Compliance and Penalties:

The NCLT adjudicates cases of non-compliance with the Companies Act, such as failure to file annual returns or hold Annual General Meetings (AGMs).