First Notes - 22 June 2016
The central government constitutes NCLT and NCLAT and notifies the related sections of the Companies Act, 2013
The Companies Act, 2013 (2013 Act) proposed the constitution of the National Company Law Tribunal (NCLT) to replace the erstwhile Company Law Board (CLB). The National Company Law Appellate Tribunal (NCLAT) was proposed under the 2013 Act as the appellate authority for appeals against the order of the NCLT, instead of the High Court. While the 2013 Act is already operational and became largely effective from 1 April 2014, the sections relating to NCLT and NCLAT and corresponding rules were not notified pending their constitution. Until the NCLT and the NCLAT were constituted, the CLB and the High Court continued to exercise their powers under the Companies Act, 1956 (1956 Act).
On 1 June 2016, the Ministry of Corporate Affairs (MCA) notified the following:
- The constitution of the NCLT and NCLAT to exercise and discharge the powers and functions as conferred on it under the 2013 Act. For this purpose, the central government constituted 11 benches of the NCLT consisting of a principal bench at New Delhi and one each at 10 different locations including New Delhi,
- Certain sections of the 2013 Act enabling the exercise of power by the NCLT and NCLAT have also been notified,
- With the constitution of the NCLT, the CLB constituted under the 1956 Act stands dissolved and all matters or proceedings pending before the CLB would be transferred to NCLT, which shall dispose such matters, or proceedings in accordance with the provisions of the 2013 Act or 1956 Act.
These notifications are effective from 1 June 2016 (being the date they are published in the official gazette).
This First Notes provides an overview of the MCA notifications.
To access the text of the MCA notification, please click here.
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