NCLT and NCLAT — Role, Jurisdiction and Cases They Handle Under Companies Act and IBC

The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) are specialised quasi-judicial bodies that handle corporate and insolvency matters in India. Established under the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016, these tribunals have transformed how corporate disputes, mergers and insolvency proceedings are handled in India.

What is NCLT?

The National Company Law Tribunal (NCLT) is a quasi-judicial body established under Section 408 of the Companies Act, 2013. It assumed the jurisdiction of the Company Law Board (CLB), the Board for Industrial and Financial Reconstruction (BIFR), the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), and the winding-up jurisdiction of High Courts relating to companies.

NCLT Benches in India

NCLT has its Principal Bench in New Delhi and additional benches in: Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Cuttack, Guwahati, Hyderabad, Jaipur, Kochi (covers Kerala), Kolkata, Mumbai, and Amravati. For companies registered in Kerala (under Kerala ROC), cases are heard at the Kochi Bench of NCLT.

Jurisdiction of NCLT — What Cases It Handles

• Corporate Insolvency Resolution Process (CIRP): Admitting applications for insolvency under IBC 2016 — filed by financial creditors, operational creditors or corporate debtors
• Winding Up of Companies: Compulsory winding up under Section 271 of Companies Act
• Oppression and Mismanagement: Petitions under Sections 241-244 against oppression of minority shareholders or mismanagement of company affairs
• Mergers and Amalgamations: Approval of schemes of arrangement, mergers, demergers and reconstructions under Sections 230-232
• Class Action Suits: By members and depositors under Section 245
• Revival and Rehabilitation: Approval of resolution plans under IBC
• Reduction of Share Capital: Under Section 66
• Conversion of company: Public limited to private limited and vice versa

What is NCLAT?

The National Company Law Appellate Tribunal (NCLAT) hears appeals from orders passed by NCLT. Any person aggrieved by an NCLT order can appeal to NCLAT within 45 days of the order (or within 45 days of knowledge, with condonation for delay). NCLAT is located in New Delhi. Appeals from NCLAT lie to the Supreme Court of India.

NCLT in IBC Proceedings

NCLT is the "Adjudicating Authority" under the Insolvency and Bankruptcy Code. Key IBC roles include: admitting CIRP applications (Section 7, 9, 10), appointing Insolvency Resolution Professionals (IRPs), approving Resolution Plans submitted by bidders, ordering liquidation if no plan is approved, and overseeing Personal Insolvency proceedings (Section 95-187).

Conclusion

NCLT and NCLAT form the backbone of corporate dispute resolution and insolvency proceedings in India. Understanding their jurisdiction helps companies, creditors and shareholders navigate complex legal situations. SPOTON provides advisory and documentation support for corporate law proceedings affecting Kerala businesses. Contact us for expert company law guidance.