The National Company Law Tribunal (NCLT) is a quasi-judicial authority in India that deals with legal matters related to companies. It was established under the Companies Act, 2013 and became operational on 1 June 2016. The Government formed the NCLT based on the recommendations of the V. Balakrishna Eradi Committee, which studied India’s company law, insolvency, and winding-up system.
NCLT functions under the Ministry of Corporate Affairs and has jurisdiction across India. Its official website is: https://nclt.gov.in
Purpose and Jurisdiction of NCLT
NCLT has been created to handle all legal matters related to companies, replacing various older bodies such as the Company Law Board and BIFR. All proceedings under the Companies Act, including:
- Arbitration related to company matters
- Compromise and settlement schemes
- Mergers, demergers, and reconstruction
- Oppression and mismanagement cases
- Winding up of companies
must be filed before the NCLT.
NCLT functions with two types of members:
- Judicial Member – Serving or retired High Court Judge
- Technical Member – Usually from the Indian Corporate Law Service (ICLS)
This combination ensures legal expertise and corporate expertise.
Role of NCLT under Insolvency and Bankruptcy Code (IBC), 2016
NCLT is the main judicial authority for corporate insolvency cases. Under the IBC:
- NCLT handles insolvency resolution of companies and LLPs
- Only NCLT can start or approve the Corporate Insolvency Resolution Process (CIRP)
- Ordinary civil or criminal courts cannot interfere in matters assigned to NCLT or NCLAT
The law also prevents courts from stopping (injunctioning) actions taken by NCLT under its legal powers.
Benches of NCLT Across India
NCLT has 16 benches in different cities. These include:
- New Delhi – 6 benches (including the Principal Bench)
- Ahmedabad – 2 benches
- Prayagraj – 1
- Bengaluru – 1
- Chandigarh – 1
- Chennai – 2
- Cuttack – 1
- Guwahati – 1
- Hyderabad – 3 (one located at Amaravati)
- Jaipur – 1
- Kochi – 1
- Kolkata – 2
- Mumbai – 5
Two new benches were approved at Indore and Amaravati. Amaravati is functional, but Indore is yet to be notified.
Since 1 November 2021, Justice R. Sudhakar (Retired Chief Justice of Manipur High Court) has been serving as the President of NCLT.
Powers and Functions of NCLT
NCLT is empowered to take up cases that were earlier handled by multiple older bodies. These include:
- Cases pending before the Company Law Board (under the Companies Act, 1956)
- Cases pending before BIFR and AAIFR (under the Sick Industrial Companies Act, 1985)
- Cases of company oppression and mismanagement
- Winding-up petitions
- Any matter assigned to NCLT under the Companies Act or IBC
NCLT acts as the specialized court for all corporate disputes.
Appeals Against NCLT Decisions
If someone is not satisfied with an NCLT order, they can appeal to the:
- National Company Law Appellate Tribunal (NCLAT)
- Further appeal can be made to the Supreme Court of India, but only on a question of law
The Supreme Court has also upheld the constitutional validity of the Insolvency and Bankruptcy Code (IBC), strengthening the authority of NCLT and NCLAT.