NCLT
& NCLAT PROVIDING HUGE OPPORTUNITIES
TO COMPANY SECRETARIES
We are glad that NCLT has come due to which plethora
of opportunities have been arose for professionals like Company Secretaries.
·
PCS (Practicing Company Secretary) can
now appear before the tribunals and handle the cases on their own for their
clients rather outsourcing their work to some advocate.
·
PCS (Practicing Company Secretary) can
now appear for matters relating to compromise, arrangements, amalgamations and
winding up.
·
Since all the powers of BIFR have been
transferred to National Company Law Tribunal and all matters before BIFR and
AAIFR would also be dealt by NCLT and NCLAT respectively. Accordingly, Company
Secretaries could play a role in this area.
·
The new Bankruptcy and Insolvency Code
also gave the NCLT the role of adjudicating bankruptcy cases for companies.
Accordingly, Company Secretaries in practice could play a role in this area.
·
Also, a company secretary in practice
can be appointed as a Technical Member of National Company Law Tribunal subject
to working experience of fifteen years (15 Yrs) as Company Secretary in
Practice.
Areas
for practice after NCLT;
-
Matters
related to Arbitration, Compromise, Arrangements and Reconstruction
-
Winding
up
o
On
the ground of inability to pay debts
o
Or
other than grounds of inability to pay debts
o
Voluntary
Winding up
Meaning
of NCLT AND NCLAT?
Ø The National Company Law
Tribunal (NCLT) is a quasi-judicial body in India that adjudicates
issues relating to companies in India.
Ø
The
NCLT has eleven benches, two at New Delhi (one being the principal bench) and one
each at Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati,
Hyderabad, Kolkata and Mumbai.
Ø
Appeal against the
orders of the Tribunal shall be heard by the Appellate Tribunal (NCLAT) at New
Delhi.
Ø
With the establishment of the NCLT and
NCLAT, the Company Law Board under
the Companies Act, 1956 will stand dissolved.
Rules related to NCLT
NCLT Website
CONSTITUTION OF THE TRIBUNAL
The National
Company Law Tribunal consists of a President and such number of judicial and
Technical Members as the Central Government may deem necessary. The President
of the Tribunal is a person who is or has been a Judge of the High Court for
five (5) years.
LEGAL JURISDICTION
Ø
On June 01, 2016, the
Ministry of Corporate Affairs (MCA) published a notification regarding the
constitution of the National Company Law
Tribunal (NCLT) & National
Company Law Appellate Tribunal (NCLAT) with effect from the June 01, 2016.
Ø
The constitution of
the aforesaid Tribunals is in exercise of the powers conferred by Sections 408 and 410 respectively of the
new Companies Act, 2013.
Ø
The Companies (Second Amendment) Act, 2002 provides for the setting up of a National Company Law Tribunal and Appellate
Tribunal to replace the existing Company Law Board (CLB) and Board for
Industrial and Financial Reconstruction (BIFR).
Ø
The setting up of the NCLT and NCLAT
are part of the efforts to move to a regime of faster resolution of corporate
disputes, thus improving the ease of doing business in India.
Ø
NCLT and NCLAT will also pave the way
for the faster implementation of the bankruptcy code.
Ø
Their setting up is expected to reduce
the burden on courts.
Ø
The establishment of the National
Company Law Tribunal (NCLT) consolidates the corporate jurisdiction of the
following authorities:
1. Company Law Board
2. Board for Industrial and Financial
Reconstruction.
3. The Appellate Authority for
Industrial and Financial Reconstruction
4. Jurisdiction and powers relating to
winding up restructuring and other such provisions, vested in the High Courts.
ADVANTAGES OF NCLT & NCLAT
The constitution
of NCLT and NCLAT was a step towards to improving the ease of doing business by
bringing all aspects of Company Law matters under one roof. Some of the most
important advantages are as under:-
·
Single window: The most important benefit that the
tribunal will act as a single window for settlement of all Company law related
disputes effectively. It shall avoid unnecessary multiplicity of proceedings
before various authorities or courts.
·
Speedy Process: The NCLT and the NCLAT are under a
mandate to dispose of cases before them as expeditiously as possible. In this
context, a time limit of three (3) months has been provided to dispose of
cases, with an extension of ninety (90) days for sufficient reasons to be
recorded by the president or the Chairperson, as the case may be.
·
Reduction of work of High Court: The number of pending cases with
High Court is too high and now the matters in respect to compromise,
arrangement, amalgamations and winding up transferred to NCLT.
·
The speedy disposal of cases will save time, energy and money of
the parties.
For more details, contact CS Neha Seth at
9871903449 or email us at csnehaseth@gmail.com
