What is the National Company Law Tribunal (NCLT)?

The National Company Law Tribunal (NCLT) is a quasi-judicial body in India that adjudicates issues relating to Indian companies. Established under the Companies Act, 2013, the NCLT functions as the central forum for resolving company law disputes, including those concerning company incorporation, shareholder rights, mergers, acquisitions, insolvency, and liquidation.

It was constituted on 1st June 2016 to consolidate the corporate jurisdiction formerly exercised by various authorities such as the Company Law Board (CLB), Board for Industrial and Financial Reconstruction (BIFR), and High Courts. The NCLT helps ensure faster resolution of company matters, enhancing the ease of doing business in India.

Key Features of NCLT

• Constituted under Section 408 of the Companies Act, 2013
• Deals with company disputes and insolvency matters
• Comprises judicial and technical members
• Headquarters in New Delhi, with benches across major cities in India
• Decisions can be appealed before the National Company Law Appellate Tribunal (NCLAT)

Jurisdiction and Powers of NCLT

The NCLT has wide-ranging jurisdiction under the Companies Act, 2013 and the Insolvency and Bankruptcy Code (IBC), 2016. It can adjudicate upon the following:

1. Company Law Matters

• Incorporation and registration issues
• Oppression and mismanagement (Section 241-244 of the Companies Act)
• Variation of shareholder rights
• Corporate governance disputes
• Investigation into company affairs
• Conversion of public companies into private ones

2. Insolvency and Bankruptcy

Under the IBC, 2016, NCLT plays a key role in:

• Initiating Corporate Insolvency Resolution Process (CIRP)
• Approving or rejecting Resolution Plans
• Ordering liquidation of insolvent companies
• Monitoring resolution professionals

3. Other Powers

• Compounding of offences
• Deregistration of companies (fraudulent incorporation)
• Sanctioning mergers, demergers, amalgamations
• Handling revival and rehabilitation of sick companies

Structure of NCLT

The NCLT is composed of:

• A President (retired High Court judge)
• Judicial Members (retired judges or advocates with experience)
• Technical Members (professionals with expertise in law, accountancy, economics, etc.)

There are several regional benches of NCLT across India, including in Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, and Ahmedabad.

Difference Between NCLT and NCLAT

Why is NCLT Important?

The NCLT has significantly impacted India’s corporate legal landscape by:

• Speeding up dispute resolution in company matters
• Facilitating timely insolvency processes
• Reducing the burden on traditional courts
• Increasing investor confidence
• Supporting the government’s “Ease of Doing Business” initiative

Latest Developments Related to NCLT (As of 2025)

• Increased digitalization and e-filing processes
• Fast-track benches to handle insolvency backlogs
• Enhanced scrutiny over shell companies and corporate fraud
• Introduction of stricter timelines for resolution plans under IBC

How to File a Case Before the NCLT?

Step-by-Step Process:

1. Identify Jurisdiction – Determine the correct NCLT bench based on the company’s registered office.
2. Draft Petition – Prepare necessary documentation and grounds for appeal.
3. Filing & Fees – Submit online/offline with the prescribed fees through the NCLT e-filing portal.
4. Hearing & Orders – Attend hearings and present arguments. Orders are typically passed within 90–180 days depending on complexity.

Who Can Approach NCLT?

• Shareholders
• Creditors
• Corporate Debtors
• Central or State Government
• Employees or Workmen
• Resolution Professionals

Common Cases Handled by NCLT

• Insolvency petitions by financial/operational creditors
• Shareholder disputes
• Class action suits
• Compromise and arrangement schemes
• Fraudulent company incorporations
• Removal of auditors or directors