The Ministry of Corporate Affairs (MCA) has issued a notification for Constitution of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) with effect from June 01, 2016. Simultaneously a number of provisions of Companies Act 2013 relating to matters requiring approval of NCLT/NCLAT have been brought into force. The NCLT has been set up with eleven benches including one principal bench at New Delhi.
With the constitution of the NCLT, the Company Law Board constituted under the Companies Act, 1956 and the Board for Industrial and Financial Reconstruction stand dissolved. It is a part of the Government’s efforts of moving towards a regime of faster resolution of corporate disputes, thereby improving the ease of doing business in India. NCLT and NCLAT will also pave the way for the faster implementation of the bankruptcy code. The NCLT would also deal with various matters, which were earlier under the jurisdiction of High Court such as winding up, mergers and amalgamations but presently these sections have not been notified.
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