HIGHLIGHTS ON NCLT
15 May 2015
HIGHLIGHTS ON NCLT Hon’ble Supreme Court in Madras Bar Association v. Union Of India Writ Petition (C) No. 1072 of 2013 upheld the constitutional validity of creation of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) - unlike National Tax Tribunal whose provisions have already been held unconstitutional. …..NCLT will hear the cases (a) now pending Hon’ble Company Judge of concerned High Court (b) References pending before BIFR (c) pending Company Law Board and (d) under various provisions of Companies Act, 2013. • National Company Law Appellate Tribunal shall hear appeals against the orders of the Tribunal. • The officers who are holding the ranks of Secretaries or Additional Secretaries can be considered for appointment as Technical Members of NCLT. • The Central Government submitted an Affidavit dated 07.05.2015 before the Hon’ble Supreme Court mentioning thereing the steps that have been taken for setting up of NCLT and NCLAT. As per the affadivt, following steps have been taken: (i) Approval for creation of one post of Chairperson and five posts of Members of NCLAT as well as one post of President and 62 posts of Members of NCLT and two posts of Registrar one each for NCLT and NCLAT and one post of Secretary, NCLT was obtained and the approval was also obtained for creation of 246 posts of supporting staff of NCLT and NCLAT. (ii) Following draft Rules have already been prepared in consultation with the Legislative Department, Ministry of Law: (a) NCLAT (Salaries, Allowances and other terms and conditions of service of the Chairperson and other Members) Rules, 2014, (b) NCLT (Salary, Allowances and other Terms and Conditions of Service of President and other Members) Rules, 2013. (iii) Draft Recruitment Rules for supporting staff were also prepared in consultation with Legislative Department, Ministry of Law. (iv) Draft Rules with regard to manner of functioning of NCLT/NCLAT etc. were prepared in order to place them before the Chairperson/President of NCLAT/NCLT on their appointment for finalization as per the provisions of the Companies Act, 2013. (v) Only step which is left to make NCLT and NCLAT functional is to appoint President and Members of NCLT and Chairperson and Members of NCLAT. To begin with, it is hoped that the Central Government may consider, rechristening the existing Company Law Board, as a National Company Law Tribunal, as has already been done for few provisions of Companies Act, 2013 viz. 58 and 59 of Companies Act, 2013.