The document discusses the establishment of the National Company Law Tribunal (NCLT) and its appellate body, the National Company Law Appellate Tribunal (NCLAT), which will consolidate the jurisdiction over corporate legal issues from multiple existing bodies. The NCLT and NCLAT are intended to provide a single window for corporate legal matters, expedite case resolutions, and include both judicial and technical members to make well-informed decisions. They will assume powers currently held by the Company Law Board, Board for Industrial and Financial Reconstruction, and appellate authorities under related laws.

1. NATIONAL COMPANY LAW TRIBUNAL
A SINGLE WINDOW INSTITUTION FOR CORPORATE
JUSTICE
CREATED BY TEAM PGC

2. CREATED BY TEAM PGC

3. Introduction
MCA is going to set up the National Company Law
Tribunal NCLT
AND
NCLAT which will replace Company Law Board,
BIFR and Appellate Authority for Industrial and
Financial Reconstruction and Comprising Judicial and
Technical members to be authorised by (CG) who will
exercise and discharge powers and functions conferred
Therewith including approval of merger, corporate
reorganization, capital reduction, extension of financial
year etc
CREATED BY TEAM PGC

4. CREATED BY TEAM PGC

5. Need For NCLT
 Considering the laws on corporate insolvency and
other such provisions with regards to company law
prevailing in industrially advanced countries, a High
Level Committee set up by the Union of India (The
Eradi Committee) recommended various
amendments.
 National Company Law Tribunal and its Appellate
Tribunal was recommended which will have the
powers of the:
• CLB under the Companies Act, 1956,
• BIFR and AAIFR under the Sick Industrial
Companies (Special Provisions) Act, 1985, and
• Jurisdiction and Powers relating to winding-up,
restructuring and other such provisions, vested
in the High Courts.
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6. Benefits of NCLT As Quasi Judicial Body
 It shall avoid multiplicity of litigation before various
Forums (High Courts, CLB, BIFR, AAIFR). Thus
there will be a consolidation of Corporate
Jurisdiction.
 There shall be at least 16 benches of the NCLT,
thereby providing justice almost at one’s doorstep.
 This tribunal shall comprise of technical experts who
will provide more concrete and precise decisions.
 There will be a mixture of judicial and equitable
jurisdiction while deciding matters.
 There shall be a reduction in period of winding-up
from 20-25 years to 2 years.
 Reduction in pendency of cases, expeditious
disposal of cases
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8. Composition Of Board & Members
 President of NCLT – Judge of High court for 5 years.
 Judicial Member of NCLT – 10 years service in Indian Legal or Corporate
Law Services,
Or equivalent post in central or state government, at a pay scale of not less
than a joint secretary to the Government of India,
Or held a judicial office for 10 years,
Or Advocate of the High Court for 10 years.
 Technical Member of NCLT – 10 years service in Indian Legal or
Corporate Law Services,
Or equivalent post in central or state government, at a pay scale of not less
than a joint secretary to the Government of India,
Or is or has been a Joint Secretary under the Central Staffing Scheme,
Or has been a Chartered Accountant for at least 20 years,
Or has been a Cost Accountant for at least 20 years,
Or has been a Company Secretary for at least 20 years,
Or 20 years experience in law, finance, management, banking etc. relating to
management, conduct of affairs, revival, rehabilitation and winding up of
companies.
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9.  Chairman of NCLAT – former judge of the Supreme
Court or Chief Justice of a High Court.
 Judicial Member of NCLAT – Judge of a High Court or
Judicial Member of NCLT for 5 years.
 Technical Member of NCLAT – 25 years of experience
in law, finance, banking, management etc. relating to
management, conduct of affairs, revival, rehabilitation
and winding up of companies
CREATED BY TEAM PGC

10. The establishment of NCLT/NCLAT shall offer various
opportunities to Practicing Company Secretaries as they
have been authorized to appear be fore the Tribunal/
Appellate Tribunal. Areas opened up for company
secretaries in practice under NCLT are stated
hereunder:
Compromise and Arrangement
Sick Companies
Winding up
Reduction of Capital
PCS as Member of NCLT
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11. CONCLUSION
 In view of the vast opportunities emerging with the
establishment of National Company Law Tribunal,
 the Practicing Company Secretaries should standardize
 their competencies with the global benchmarks to provide
value added services in assisting the Tribunal in
 dispensation of justice
 and speedier disposal of matters
 like merger, amalgamation,
 restructuring, revival and
 rehabilitation of sick companies
 and winding up of companies.
CREATED BY TEAM PGC