The National Company Law Tribunal (NCLT) is a quasi-judicial body in India, established as an institution to adjudicate issues concerning Indian companies. It was constituted by the Central Government on June 1, 2016, under Section 408 of the Companies Act, 2013. The NCLT's creation was based on the recommendations of the Justice Eradi Committee, which was formed to examine and reform the law relating to the insolvency and winding up of companies to reduce delays.
The NCLT was created to solve the problem of fragmented jurisdiction and inordinate delays in corporate dispute resolution. It replaced and consolidated the jurisdiction of multiple forums, including the Company Law Board (CLB), the Board for Industrial and Financial Reconstruction (BIFR), the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), and the powers of the High Courts concerning winding up, restructuring, and other provisions.
The NCLT functions as the Adjudicating Authority for the insolvency resolution process of companies and Limited Liability Partnerships (LLPs) under the Insolvency and Bankruptcy Code (IBC), 2016. Key mechanisms include initiating the Corporate Insolvency Resolution Process (CIRP) upon application by a financial creditor, operational creditor, or the corporate debtor itself, and declaring a moratorium under Section 14 of the IBC. Under the Companies Act, 2013, the NCLT also handles matters like oppression and mismanagement (Sections 241 to 246), class action suits (Section 245), and approving compromises, arrangements, and amalgamations.
The NCLT is closely connected to the National Company Law Appellate Tribunal (NCLAT), which was constituted under Section 410 of the Companies Act, 2013, to hear appeals against NCLT orders. The NCLT's role as the Adjudicating Authority under the IBC, 2016, is its most significant recent change, transforming India's corporate debt resolution landscape. The establishment of the NCLT and NCLAT dissolved the CLB, which was formed under the Companies Act, 1956.