National Company Law Tribunal
The emergence for referring up cases specialized tribunals can be traced in the various Judgements by the Courts. The supra of few judgments is stated herewith:
Union Of India vs Tata Teleservices (Maharashtra) Ltd on 23 August, 2007 – “The conspectus of the provisions of the Act clearly indicates that disputes between the licensee or licensor, between two or more service providers which takes in the Government and includes a licensee and between a service provider and a group of consumers are within the purview of the TDSAT. A plain reading of the relevant provisions of the Act in the light of the preamble to the Act and the Objects and Reasons for enacting the Act, indicates that disputes between the concerned parties, which would involve significant technical aspects, are to be determined by aspecialised tribunal constituted for that purpose”
Tata Communications Limited vs Union Of India on 7 July, 2010 – “these would involve significant technical aspects which could be better determined by a specialised Tribunal constituted for that purpose and consequently, under Section 15 of the Telecom Act the Civil Court’s jurisdiction would stand barred for determination of the dispute between the parties.
Thus due to increase in Litigation, the burden of cases pending in Courts, the judiciary has deviced a mechanism for setting up independent tribunal so that the objective to reduce the backlog of Courts and speedy redressal of dispute. Since setting up of Tribunal involves appointment of Technical and Judicial member, appointment of an expert in the discipline can provide a boon to resolution of disputes in a better way.
The Companies (Second Amendment) Act, 2002 had provided for the setting up of a NCLT and Appellate Tribunal to replace the existing Company Law Board (“CLB”) and Board for Industrial and Financial Reconstruction (“BIFR”). NCLT would be dealing in various matters pertaining to winding up of Companies, Revival and Restructuring which presently hitherto falls under the jurisdiction of High Court and BIFR respectively.
Due to incessant litigation, High Courts are not able to render exclusive attention to winding up cases and even due to advent of BIFR the aim for speedy recovery for companies has not been achieved. Thus setting up NCLT would ease the workload of the Courts and speedy resolution of grievance.
Powers of NCLT
- NCLT would entertain proceedings which have been transferred to the Tribunal from High Court or Company Law Board or any other court or Tribunal as provided in section 434 of the Companies Act,2013 (“Act”) and also scheme of revival.
- Power of High Court in the matters of mergers, demergers, amalgamations, winding up, etc.
- Power of Winding up of Company
- Power to entertain application to failure in redemption of debentures or repayment of deposits or any part thereof or any interest thereon under Act or RBI Act,1934.
- Compounding of certain offence
National Company Law Tribunal
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