Context:
Recently, the Bengaluru bench of the National Company Law Tribunal (NCLT) admitted BCCI’s petition seeking insolvency proceedings against ed-tech giant Byjus.
National Company Law Tribunal:
- A quasi-judicial authority incorporated for dealing with corporate disputes that are of civil nature arising under the Companies Act.
- Constituted in 2016 under the Companies Act, 2013.
- Ministry – Ministry of Corporate Affairs
- Recommended by – Balakrishna Eradi committee
- Composition – President + Judicial and Technical Members
- Key roles –
- Functions like a regular court, ensuring fair, unbiased case evaluations based on principles of natural justice.
- Issues decisions in the form of orders.
- Adjudicating authority for the insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.
- Appeals –
- Decisions of the tribunal may be appealed to the National Company Law Appellate Tribunal, the decisions of which may further be appealed to the Supreme Court of India on a point of law.
- Major Functions of NCLT –
- Cancel Company Registration
- Members can be held liable without limit
- Handle Share Transfer grievances
- Order Investigations globally.
Source: Indian Express
Previous Year Question
Consider the following organizations/ bodies in India:
1. The National Commission for Backward Classes
2. The National Human Rights Commission
3. The National Law Commission
4. The National Consumer Disputes Redressal Commission
How many of the above are constitutional bodies?
[UPSC Civil Service – 2023 Prelims]
(a) Only one
(b) Only two
(c) Only three
(d) All four
Answer: (a)
Explanation:
All other bodies except National Commission for Backward Classes are non-constitutional bodies.
