NCLT & NCLAT New Era of Corporate Governance
Being Quasi-Judicial body National Company Law Board Tribunal (NCLT) consolidates the corporate jurisdiction of the Company Law Board, Board of Industrial and Financial Reconstruction, the Appellate Authority for Industrial and Financial Reconstruction and Jurisdiction and powers related to the winding up, restructuring, and other provisions as vested with the High Courts. It is established by Supreme Court to order to handle the laws regarding Companies.
Globalisation and the Liberation process undoubtedly triggered the spur of business opportunity and a fast paced economic growth. These developments would not reap benefits in the long run, until the corporate disputes settlement process also happens at a commensurate pace. This fast paced disposal required the setting up of the specialised tribunals, which were fully equipped in dealing with the intricate matter involving there specialised subjects.
The law Commission of India had pointed out that the multifarious litigation coming before the high court in exercise of its wide jurisdiction is to an extent responsible for the case loads the high court are made to bear and hence recommended for the establishment of specialist tribunals.
On the basis of above we may conclude the following Advantages of NCLT:
- Specialized court for companies: NCLT is specially formed for purpose of resolving the litigations and to handle other frauds related with corporates. It ensures speedy disposal of cases.
- Reduce the multiplicity of litigation before different forums and courts: While consolidating the corporate jurisdiction of the Company Law Board, Board of Industrial and Financial Reconstruction, the Appellate Authority for Industrial and Financial Reconstruction and Jurisdiction and powers related to the winding up, restructuring, and other provisions as vested with the High Court’s NCLT reduces the multiplicity of litigation before different forum and court.
- Having multiple Branches: As NCLT has multiple branches across the country, it is able to provide justice at a close range.
- Having both Judicial and Technical member Because of having both Judicial as well as technical member, the Orders passed by NCLT are after examining the “Nuts and Bolts” and Pros and Cons” of each case.