NCLT Litigation Services: Advocating Excellence Before the National Company Law Tribunal
At SS Corporate Law Advisors (SSCLA), we stand as your steadfast legal partners, providing comprehensive litigation services before the National Company Law Tribunal (NCLT) under various sections of the Companies Act 2013. Our proficient team of legal experts is adept at handling a spectrum of cases, ensuring robust representation and strategic counsel. Explore the pivotal sections of the Companies Act 2013 and the Insolvency and Bankruptcy Code (IBC) that empower NCLT, along with a list of specific matters falling under these sections.
Major Powers Exercised by NCLT:
NCLT, established to streamline corporate law proceedings, holds extensive authority to adjudicate matters involving corporate restructuring, insolvency, and various statutory compliances. Its key powers include:
Granting approval for mergers, amalgamations, and demergers.
Adjudicating insolvency and bankruptcy proceedings.
Approving compromise or arrangement schemes between companies and their creditors or members.
Ensuring compliance with various provisions of the Companies Act 2013 and IBC.
Matters Falling Under NCLT Jurisdiction:
Our seasoned litigation team is proficient in handling diverse cases brought before NCLT, including those under the following sections of the Companies Act 2013 and IBC:
Section 2(41): Definition of Holding and Subsidiary Company
Section 7(7): Commencement of Business
Section 14(1) and 14(2): Alteration of Articles and Conversion of Companies
Section 48(2): Variation of Shareholders’ Rights
Section 55(3): Issue and Redemption of Preference Shares
Section 58 and 59: Transfer and Transmission of Securities
Section 61(1)(b): Further Issue of Share Capital
Section 62(6): Rights Issue
Section 66: Reduction of Share Capital
Section 71: Debentures and Debenture Trustees
Section 73, 74, 75, and 76: Acceptance of Deposits
Section 97 and 98: Calling and Conducting General Meetings
Section 119: Inspection of Registers and Records
Section 130 and 131: Investigation and Inspection
Section 140: Removal, Resignation, and Replacement of Auditors
Section 169: Removal of Directors
Section 210(2): Investigation into Company Affairs – NCLT has the authority to order investigations into the affairs of a company to ascertain any financial irregularities or mismanagement.
Section 213: Investigation into Company’s Ownership – NCLT can order investigations into the ownership structure and control of a company if there are concerns about beneficial ownership or related matters.
Section 216(2): Investigation of Ownership by Serious Frauds Investigation Office (SFIO) – NCLT can order the SFIO to investigate cases involving fraud or serious financial misconduct related to the ownership of a company.
Section 218: Investigating Report and Actions Thereon – NCLT reviews the investigative reports submitted by the authorities and takes appropriate actions based on the findings.
Section 221: Freezing of Assets – NCLT has the power to order the freezing of assets when it deems necessary for the purpose of investigation or during legal proceedings.
Section 222(1): Merger or Amalgamation of Companies – NCLT’s approval is required for mergers and amalgamations between companies, ensuring compliance with legal provisions and protecting stakeholders’ interests.
Section 224(5): Removal of Auditor – NCLT can remove an auditor on an application made by the Central Government or the company itself, if it deems the auditor to be involved in fraudulent activities.
Section 230 and 231: Compromise or Arrangement – NCLT approves schemes of compromise or arrangement between a company and its creditors or shareholders, ensuring fairness and compliance.
Section 232: Merger or Amalgamation of Companies – NCLT’s approval is necessary for merger or amalgamation of companies, protecting the rights of stakeholders and ensuring compliance.
Section 235(3): Investigating Officers’ Powers – NCLT provides investigating officers appointed by it with necessary powers to carry out investigations.
Section 237(4): Action Against Defaulting Companies – NCLT can take actions against companies that have failed to repay their deposits, ensuring creditor protection.
Sections 241 and 242: Oppression and Mismanagement – NCLT addresses cases of oppression and mismanagement in companies, protecting the rights of shareholders and stakeholders.
Section 245: Class Action Suits – NCLT addresses class action suits brought by shareholders or depositors, ensuring collective redressal for affected parties.
Section 246: Application for Compounding Offences – NCLT has the authority to compound certain offenses under the Companies Act, allowing for penalties to be settled.
Section 252: Jurisdiction of NCLT – NCLT exercises jurisdiction over various matters specified under the Act.
Section 441: Compounding of Offenses – NCLT can compound certain offenses committed by companies, allowing for penalties to be settled.
These powers underline NCLT’s crucial role in ensuring corporate governance, protecting stakeholders, and maintaining the integrity of company operations within the framework of the Companies Act 2013.
Matters under Insolvency and Bankruptcy Code:
The National Company Law Tribunal (NCLT) holds significant powers under the Insolvency and Bankruptcy Code (IBC) of 2016 to oversee and facilitate insolvency resolution and bankruptcy proceedings. The powers of NCLT under the IBC include:
Adjudication of Insolvency Applications: NCLT has the authority to admit or reject insolvency applications filed by financial creditors, operational creditors, or the corporate debtor itself.
Initiation of Corporate Insolvency Resolution Process (CIRP): NCLT can initiate the CIRP when an insolvency application is admitted. This involves appointing an interim resolution professional (IRP) to manage the affairs of the corporate debtor during the insolvency process.
Appointment and Replacement of Resolution Professional: NCLT approves the appointment of a resolution professional (RP) to manage the insolvency resolution process. It also has the power to replace the RP under certain circumstances.
Moratorium: NCLT declares a moratorium on all legal proceedings against the corporate debtor during the CIRP period to prevent the dissipation of assets.
Approval of Resolution Plan: NCLT evaluates and approves the resolution plan submitted by the successful resolution applicant. It ensures that the plan adheres to the provisions of the IBC and is in the best interest of all stakeholders.
Liquidation: If a resolution plan is not approved within the specified time or the approved plan fails, NCLT may pass an order for the liquidation of the corporate debtor’s assets.
Fraudulent and Preferential Transactions: NCLT has the power to avoid fraudulent and preferential transactions that have taken place before the initiation of the CIRP.
Interim Orders: NCLT can issue interim orders to protect the interests of the corporate debtor during the insolvency process.
Appointment of Independent Directors: In certain cases, NCLT has the authority to appoint independent directors to the board of the corporate debtor.
Approval of Decisions of the Committee of Creditors (CoC): Decisions made by the CoC, such as approval of the resolution plan, are subject to NCLT’s approval.
Dissolution of Corporate Debtor: After the completion of the liquidation process, NCLT passes an order for the dissolution of the corporate debtor.
Resolution of Disputes: NCLT is responsible for resolving any disputes that arise during the insolvency process, including issues related to the implementation of the resolution plan.
Cross-Border Insolvency: NCLT has the power to deal with matters related to cross-border insolvency as per the provisions of the IBC.
These powers granted to the NCLT under the Insolvency and Bankruptcy Code are crucial for ensuring the efficient and orderly resolution of distressed companies, protecting the interests of creditors, stakeholders, and the overall economy
Our unwavering commitment lies in delivering tailored strategies, meticulous legal representation, and unwavering dedication to your legal needs. Whether you seek assistance in insolvency proceedings, corporate restructuring, or regulatory compliance, our proficient team at SSCLA ensures that your interests are protected and advocated for with utmost diligence.
Discover the difference of legal excellence with SS Corporate Law Advisors. To discuss your NCLT litigation requirements or explore our other legal services, reach out to us. Let us guide you through the intricacies of corporate law with precision and finesse.