NATIONAL COMPANY

LAW TRIBUNAL (NCLT)

GENESIS OF NCLT
 Section 407 : Definition
 Section 408 : Constitution of National Company Law Tribunal
 Section 409 : Qualification of President and Members of

Tribunal
 Section 410 : Constitution of Appellate Tribunal
 Section 411 : Qualification of Chairperson and Members of

Appellate Tribunal
 Section 412 : Selection of Members of Tribunal and Appellate

Tribunal
 Section 413 : Term of office of President, Chairperson and

other Members
 Section 414 : Salary, allowance and other terms and

conditions of service of Members

DEFINITIONS OF CERTAIN TERMS
(S. 407)

Member means a member

Judicial Member means a
Chairperson means whether Judicial or
member of Tribunal or
Chairperson of Appellate Technical of the Tribunal
Appellate Tribunal as the
Tribunal or Appellate Tribunal as
case may be
the case may be

Technical Member means

President means the a member of the Tribunal
President of the Tribunal or Appellate Tribunal as
the case may be
National Company Law Tribunal -
NCLT (S. 408)
 Shall consist of President and such Number of
Judicial & Technical Members as Central
Government deems fit to be appointed by
Notification
 Powers and Functions to be conferred shall

be decided by Central Government

PRESCRIBED QUALIFICATIONS FOR
APPOINTMENT IN NCLT
Judicial Member – (S. 409)
Sitting or Ex Judge of Technical Member -
High Court Member of Indian Corporate
Law Service for at least 15
OR years or Indian Legal
Service in the pay scale of
Sitting or Ex Judge of Joint Secretary or above
District Court for at OR
least 5 years Company Secretary/
OR Chartered Accountant /Cost
Accountant in practice for
Advocate of a Court at least 15 years
President – for at least 10 years OR
Sitting or Ex (including the Any Person of proven ability,
integrity and Standing
Judge of High period of member of having special knowledge
Judicial Office or
Court for at Office of Member of
and experience of at least
15 years in law, finance,
least 5 years a Tribunal or any industrial management or
administration, accountancy
post under State or etc.
Central Government OR
requiring special Person who is ex-presiding
knowledge of law Officer of a Labour Court,
after he became Tribunal or National
Tribunal under Industrial
Advocate ) Dispute Act
NATIONAL COMPNAY LAW APPELLATE
TRIBUNAL(NCLAT) - S. 410
 Maximum No. of Members : 11 including
Chairperson, Judicial & Technical Members

 Empowered to hear appeals against the

Orders of NCLT
 CRITERIA FOR APPOINTMENT OF CHAIRPERSON
& MEMBERS OF NCLAT(S. 411)

 CHAIRPERSON SHALL BE A PERSON WHO IS PRESENT OR EX

JUDGE OF SUPREME COURT OR CHIEF JUSTICE OF HIGH
COURT

 JUDICIAL MEMBER SHALL BE A PERSON WHO IS OR WHO

HAS BEEN A JUDGE OF HIGH COURT OR A JUDICIAL
MEMBER OF THE TRIBUNAL FOR FIVE YEARS

 TECHNICAL MEMBER SHALL BE A PERSON WITH PROVEN

ABILITY, GOOD INTEGRITY,STANDING AND EXPERIENCE
OF AT LEAST 25 YEARS HAVING SPECIAL KNOWLEDGE IN
LAW, FINANCE, MANAGEMENT, ACCOUTANCY, LABOUR
MATTERS ETC.
SELECTION OF MEMEBRS OF NCLT &
NCLAT (S. 412)
President of Tribunal, Chairperson
and Judicial Members of Appellate
Tribunal Chairperson to be
appointed in consultation with
Chief Justice of India
Members of Tribunal & Technical
Members of NCLAT to be appointed
on the basis of recommendation by
Selection Committee (consisting of
Chief Justice of India or his
Nominee, Senior Judge of SC or
Chief

Selection Committee shall consist

of :
Chief Justice of India or his
Nominee, Senior Judge of SC or
Chief Justice of HC, Secretary in
MCA, Secretary in Ministry of Law,
Ministry of Finance,
Terms of Office of President &
Members (s. 413)
 Initial Term of 5 years but can be renewed for
next 5 years
 Chairperson of Appellate Tribunal :
Till attainment of 70 years
 Age Limit :
President of Tribunal : Till attainment of 67 years
Other Members : Till attainment of 65 years
No person shall be appointed as a Member unless he
has completed 50 years
CONSTITUTION OF BENCHES OF NCLT
(S. 419)
 CENTRAL GOVT IS EMPOWERD TO DECIDE NO OF BENCHES
BY ISSUING NOTIFICATION
 PRINCIPAL BENCH AT NEW DELHI TO BE PRESIDED OVER BY
PRESIDNET
 EXERCISE OF POWERS BY BENCH CONSISTING OF 2
MEMBERS (JUDICIAL & TECHNICAL)
 EXERCISE OF POWERS BY SINGLE JUDICIAL MEMBER (IF
AUTHORISED BY PRESIDENT)
 CASES OF REHABILITATION, RESTRUCTURING, REVIVAL OR
WINDING UP TO BE HANDLED BY SPECIAL BENCH
CONSISTING OF 3 OR MORE MEMBERS(shall consist of
Majority Judicial Members)
RECTIFICATION & RIGHT TO APPEAL
TO NCLAT (S. 420 & 421)
 WITHIN 2 YEARS FROM THE DATE OF ORDER,
NCLT MAY RECTIFY MISTAKE APPARENT FROM
RECORD AFTER GIVING OPPORTUNITY OF BEING
HEARD TO BOTH PARTIES
 RECTIFICATION NOT TO BE DONE WHEN APPEAL
IS PREFERRED BY ANY OF THE PARTY
 RIGHT OF APPEAL WITHIN 45 DAYS FROM THE
DATE OF RECEIPT OF CERTIFIED COPY OF ORDER
BY THE AGGREIVED PARTY EXCLUDING CASES
WEHRE CONSENT ORDERS HAVE BEEN PASSED BY
NCLT TO NCLAT
CONTD.

 POWER TO CONDONE DELAY OF APPEAL

BEYOND 45 DAYS FOR SUFFICIENT GROUNDS
 DISPOSAL OF APPEAL WITHIN 3 MONTHS

FROM THE DATE OF PRESENTATION. (S. 422)

 RECORDING OF REASONS BY NCLAT FOR NOT

DISPOSING APPLICATION/APPEAL BEYOND 3

MONTHS
 CHAIRPERSON MAY EXTEND PERIOD OF
DISPOSAL UPTO 90 DAYS AFTER REVIEWING
RECORDED REASONS
CONTD.
 RIGHT TO APPEAL ON ANY QUSETION OF LAW
TO SUPREME COURT WITHIN A PERIOD OF 60
DAYS FROM THE DATE OF RECEIPT OF CERTIFIED
COPY OF ORDER FROM NCLAT
 SUPREME COURT MAY EXTEND PERIOD OF
APPEAL UPTO 60 DAYS ON SUFFICIENT GENUINE
GROUNDS
 NCLT & NCLAT ARE NOT BOUND BY CIVIL
PROCEDURE CODE BUT GUIDED BY PRINCIPLES
OF NATUTAL JUSTICE & HAVE POWER TO
REGULATE THEIR OWN PROCEDURE
VESTING OF SPECIAL POWERS TO
NCLT & NCLAT( S. 425 TO 427)
 NCLT & NCLAT ARE VESTED WITH POWERS OF
CONTEMPT AT PAR WITH HIGH COURT UNDER
CONTEMPT OF COURTS ACT, 1971 (S. 425)
 NCLT & NCALT MAY DIRECT BY GENERAL OR
SPECIAL ORDER TO ANY OF ITS’ OFFICERS OR
EMPLOYEES OR ANY OTHER PERSON TO ENQUIRE IN
ANY MATTER CONNECTED WITH PROCEEDINGS (S.
426)
 PRESIDENT, MEMBERS, OFFICERS & OTHER
EMPLOYEES OF NCLT & NCLAT ARE DEEMED AS
PUBLIC SERVANTS U/S 21 OF INDIAN PENAL CODE(S.
427)
EXCLUSIVE JURISDICTION TO NCLT &
NCLAT (S. 430)
 NO CIVIL COURT SHALL HAVE JURISDICTION TO
ENTERTAIN ANY MATTER IN RESPECT OF ANY MATTER
WHICH NCLT OR NCLAT ARE EMPOWERED TO
DETERMINE
 RIGHT OF AGGREIVED PARTY TO REPRESENT IN PERSON
OR THROUGH COMPANY SECRETARY, CHARTERED
ACCOUNTANT, LEGAL PRACTITIONERS OR ANY OTHER
PERSON TO PRESENT HIS CASE(S. 431)
 PROVISIONS OF LIMITATION ACT 1963 SHALL APPLY TO
PROCEEDINGS OR APPEALS BEFORE NCLT AND NCLAT
 PENDING MATTERS BEFORE CLB, DISTRICT COURT, HIGH
COURT SHALL BE TRANSFERRED TO NCLT
SINGLE WINDOW FOR CORPORATE
MATTERS

1
POWERS OF HIGH COURT RELATING TO WINDING UP, MERGER,
●

AMALGAMATION,COMPROMISE & ARRANGMENT U/S 391 TO 394

OF THE COMPANIES ACT, 1956 & APPEALS FROM CLB ORDERS

2
POWERS OF BIFR &APPELLATE AUTHORITY FOR INDUSTRICAL &
●

FINANCIAL RECONSTRUCTION (AAIFR) UNDER SICK INDUSTRIAL

COMPANIES ACT 1985 RELATING TO REHABILITATION OF SICK
COMPANIES

3 POWERS OF COMPAY LAW BOARD VESTED

●

UNDER THE COMPANIES ACT 1956/2013

STRIKING FEATURES OF NCLT v/s CLB
 CLB HAS NO POWER TO TAKE ACTION FOR
CONTMEPT AT PAR WITH HIGH COURT WHICH
WILL BE VESTED IN NCLT
 OBJECTIVE AND IMPROVED CRITERIA IS
PRESCRIBED FOR APPOINTMENT OF PERSONS
WITH JUDICIAL BACKGROUND ON NCLT
CONTRARY TO CLB
 STIPULATION OF TIME LIMIT FOR DISPOSAL

OF APPEALS BY NCLAT UNLIKE EXISTING

SYSTEM
THANK YOU

Prepared by : A.M.Antarkar & Co.

Company Secretaries