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NCLT lawyer in Indore

Introduction to National Company Law Tribunal

“The Central Government has constituted National Company Law Tribunal (NCLT) under section 408 of the Companies Act, 2013 (18 of 2013) w.e.f. 01st June 2016. In the first phase the Ministry of Corporate Affairs has set up eleven Benches, one Principal Bench at New Delhi and ten other Benches at New Delhi, Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata and Mumbai. These Benches are headed by the President Chief Justice (Retd.) Ramalingam Sudhakar and comprises of sixteen Judicial Members and nine Technical Members at different locations. Subsequently, more Benches at Cuttack, Jaipur, Kochi, Amravati, and Indore have been setup and new members have joined”

NCLT – Understanding National Company Law Tribunal in Indore and its power

National Company Law Tribunal is the outcome of the Eradi Committee. NCLT was intended to be introduced in the Indian legal system in 2002 under the framework of Companies Act, 1956 however, due to the litigation with respect to the constitutional validity of NCLT which went for over 10 years, therefore, it was notified under the Companies Act, 2013.

It is a quasi-judicial authority incorporated for dealing with corporate disputes that are of civil nature arising under the Companies Act. However, a difference could be witnessed in the powers and functions of NCLT under the previous Companies Act and the 2013 Act. The constitutional validity of the NCLT and specified allied provisions contained in the Act were re-challenged. Supreme Court had preserved the constitutional validity of the NCLT, however, specific provisions were rendered as a violation of the constitutional principles.

NCLT works on the lines of a normal Court of law in the country and is obliged to fairly and without any biases determine the facts of each case and decide with matters in accordance with principles of natural justice and in the continuance of such decisions, offer conclusions from decisions in the form of orders. The orders so formed by NCLT could assist in resolving a situation, rectifying a wrong done by any corporate or levying penalties and costs and might alter the rights, obligations, duties or privileges of the concerned parties. The Tribunal isn’t required to adhere to the severe rules with respect to appreciation of any evidence or procedural law.

Major Functions of NCLT in Indore

Registration of Companies

The new Companies Act, 2013 has enabled questioning the legitimacy of companies because of specific procedural errors during incorporation and registration. NCLT has been empowered in taking several steps, from cancelling the registration of a company to dissolving any company. The Tribunal could even render the liability or charge of members to unlimited. With this approach, NCLT can de-register any company in specific situations when the registration certificate has been obtained by wrongful manner or illegal means under section 7(7) of the Companies Act, 2013.

Transfer of shares

NCLT is also empowered to hear grievances of rejection of companies in transferring shares and securities and under section 58- 59 of the Act which were at the outset were under the purview of the Company Law Board. Going back to Companies Act, 1956 the solution available for rejection of transmission or transfer were limited only to the shares and debentures of a company but as of now the prospect has been raised under the Companies Act, 2013 and the now covers all the securities which are issued by any company. 


The Chapter V of the Act deals with deposits and was notified several times in 2014 and Company Law Board was the prime authority for taking up the cases under said chapter. Now, such powers under the chapter V of the Act have been vested with NCLT. The provisions with respect to the deposits under the Companies Act, 2013 were notified prior to the inception of the NCLT. Unhappy depositors now have a remedy of class actions suits for seeking remedy for the omissions and acts on part of the company that impacts their rights as depositors.

Power to investigate

As per the provision of the Companies Act, 2013 investigation about the affairs of the company could be ordered with the help of an application of 100 members whereas previously the application of 200 members was needed for the same. Moreover, if a person who isn’t related to a company and is able to persuade NCLT about the presence of conditions for ordering an investigation then NCLT has the power for ordering an investigation. An investigation which is ordered by the NCLT could be conducted within India or anywhere in the world. The provisions are drafted for offering and seeking help from the courts and investigation agencies and of foreign countries.

Freezing assets of a company

The NCLT isn’t just empowered to freezing the assets of a company for using them at a later stage when such company comes under investigation or scrutiny, such investigation could also be ordered on the request of others in specific conditions.

Converting a public limited company into a private limited company

Sections 13-18 of the Companies Act, 2013 read with rules control the conversion of a Public limited company into the Private limited company, such conversion needs an erstwhile confirmation from the NCLT. NCLT has the power under section 459 of the Act, for imposing specific conditions or restrictions and might subject granting approvals to such conditions.

Powers of National Company Law Tribunal (NCLT) in Indore

The Tribunal and the Appellate Tribunal is bound by the rules laid down in the Code of Civil Procedure and is guided by the principles of natural justice, subject to the other provisions of this Act and of any rules that are made by the Central Government. The Tribunal and the Appellate Tribunal has the power to control its own procedure.

Further, no civil court has the jurisdiction to consider any suit or proceeding with reference to any matter which the Tribunal or the Appellate Tribunal is empowered to decide.

National Company Law Tribunal enjoys a wide range of powers. Its powers include:

  • Power to seek assistance of Chief Metropolitan Magistrate.
  • De-registration of Companies.
  • Declare the liability of members unlimited.
  • De-registration of companies in certain circumstances when there is registration of companies is obtained in an illegal or wrongful manner.
  • Remedy of oppression and mismanagement.
  • Power to hear grievance of refusal of companies to transfer securities and rectification of register of members.
  • Protection of the interest of various stakeholders, especially non-promoter shareholders and depositors.
  • Power to provide relief to the investors against a large set of wrongful actions committed by the company management or other consultants and advisors who are associated with the company.
  • Aggrieved depositors have the remedy of class actions for seeking redressal for the acts/omissions of the company which hurt their rights as depositors.
  • Powers to direct the company to reopen its accounts or allow the company to revise its financial statement but do not permit reopening of accounts. The company can itself also approach the Tribunal through its director for revision of its financial statement.
  • Power to investigate or for initiating investigation proceedings. An investigation can be conducted even abroad. Provisions are provided to assist investigation agencies and courts of other countries with respect to investigation proceedings.
  • Power to investigate into the ownership of the company.
  • Power to freeze assets of the company.
  • Power to impose restriction on any securities of the company.
  • Conversion of public limited company into private limited company.
  • If the company cannot or has not held an Annual General Meeting as required under the Companies Act or a required Extraordinary General Meeting, then the Tribunal has powers to call for a General Meetings.
  • Power to alter the financial year of a company registered in India.

National Company Law Appellate Tribunal (NCLAT)

Appeal from order of Tribunal can be raised to the National Company Law Appellate Tribunal (NCLAT). Appeals can be made by any person aggrieved by an order or decision of the NCLT, within a period of 45 days from the date on which a copy of the order or decision of the Tribunal.

On the receipt of an appeal from an aggrieved person, the Appellate Tribunal would pass such orders, after giving an opportunity of being heard, as it considers fit, confirming, changing or setting aside the order that is appealed against.The Appellate Tribunal is required to dispose the appeal within a period of six months from the date of the receipt of the appeal.

“The Central Government has constituted National Company Law Tribunal (NCLT) under section 408 of the Companies Act, 2013 (18 of 2013) w.e.f. 01st June 2016. In the first phase the Ministry of Corporate Affairs has set up eleven Benches, one Principal Bench at New Delhi and ten other Benches at New Delhi, Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata and Mumbai. These Benches are headed by the President Chief Justice (Retd.) Ramalingam Sudhakar and comprises of sixteen Judicial Members and nine Technical Members at different locations. Subsequently, more Benches at Cuttack, Jaipur, Kochi, Amravati, and Indore have been setup and new members have joined”

S.NO.Title of BenchLocationJurisdiction
1(a) NCLT, Principal Bench.
(b) NCLT, New Delhi Bench.
Block No. 3, Ground Floor, 6th,7th & 8th Floor, CGO Complex, Lodhi Road, New Delhi-110003(1) Union Territory of Delhi
2NCLT Ahmedabad Bench.1st & 2nd  Floor, Corporate Bhawan, Beside Zydus Hospital, Thaltej, Ahmedabad-380059(1) State of Gujarat(2) Union Territory of Dadra and Nagar Haveli(3) Union Territory of Daman and Diu
3NCLT Allahabad Bench.6/7-B, Panna Lal Road, Prayagraj-211002(1) State of Uttar Pradesh(2) State of Uttrakhand
4NCLT Amravati Bench.Corporate Bhawan, Bandlaguda Tattiannaram Village, Hayatnagar Mandal, Rangareddy District,Hyderabad-500068(1) State of Andhra Pradesh
5NCLT Bengaluru Bench.Corporate Bhawan, 12th Floor, Raheja Towers, M.G., Road, Benguluru-560001(1) State of Karnataka
6NCLT Chandigarh Bench.Ground Floor, Corporate Bhawan, Sector-27 B, Madhya Marg, Chandigarh-160019(1) State of Himachal Pradesh(2) State of Jammu and Kashmir(3) State of Punjab(4) Union Territory of Chandigarh
(5) State of Haryana
7NCLT Chennai Bench.Corporate Bhawan (UTI Building),3rd Floor,No. 29 Rajaji Salai,Chennai-600001(1) State of Tamil Nadu(2) Union Territory of Puducherry
8NCLT Cuttack Bench.Corporate Bhawan,CDA, Sector-1,Cuttack-753014(1) State of Chhattisgarh.(2) State of Odisha.
9NCLT Guwahati Bench.4th Floor, Prithvi Planet Behind Hanuman Mandir, G.S. Road, Guahati-781007(1) State of Arunchal Pradesh(2) State of Assam(3) State of Manipur(4) State of Mizoram(5) State of Meghalaya(6) State of Nagaland(7) State of Sikkim(8) State of Tripura
10NCLT Hyderabad Bench.Corporate Bhawan, Bandlaguda Tattiannaram Village, Hayatnagar Mandal, Rangareddy District, Hyderabad-500068(1) State of Telangana
11NCLT Indore Bench.1st & 2nd  Floor, Corporate Bhawan, Beside Zydus Hospital, Thaltej, Ahmedabad-380059(1) State of Madhya Pradesh
12NCLT Jaipur Bench.Corporate Bhawan, Residency Area,Civil Lines,Jaipur-302001(1) State of Rajasthan.
13NCLT Kochi Bench.Company Law Bhawan, BMC Road, Thrikkakara -(PO) Kakkanand, Kochi-682021(Kerala)(1) State of Kerala(2) Union Territory of Lakshadweep
14NCLT Kolkata Bench.5, Esplanade Row (West), Town Hall Ground and 1st Floor Kolkata-700001(1) State of Bihar(2) State of Jharkhand(3) State of West Bengal(4) Union Territory of Andaman and Nicobar Island
15NCLT Mumbai Bench.4th Floor, MTNL Exchange Building, Near G.D. Somani Memorial School, G.D.Somani Marg, Cuffe Parade, Mumbai-400005(1) State of Maharashtra(2) State of Goa
NCLT Benches all over India

Initiation of Insolvency proceedings by Debtor

Under the Insolvency and Bankruptcy Code, 2016 (Code), in case of an entrepreneur (Corporate Debtor) in debt may submit an application under Section- 10 of the Code for initiation of insolvency proceedings. The entrepreneur must supply all information regarding the books of account and the RP (person who determines the liquidation value of the Corporate Debtor by way of reaching at an estimated probable value of the assets on the insolvency initiation date) to be appointed. In addition, a special resolution has to be passed by the shareholders of the Corporate Debtor or a resolution by at least 3/4th of the total number of partners of the company must be passed whereby agreeing to the filing of the insolvency resolution application.

Although there may be some panic of abuse of Section-10, it is a crucial tool available to the corporate debtors when looking to resolve their insolvency, especially in cases where creditors hold back or are dragging their feet on selecting an outside Code resolution plan. Anyhow, the success of this legal provision is dependent on how jurisprudence around Sections 65 and 66 of the Code evolves. While Section- 65 provides a brake to file (keeping in mind the risk of National Company Law Tribunal (NCLT) deciding malicious or fraudulent intention by the debtor), Section- 66 provides a motivation to the Directors to file (to evade personal liability for unfair trading).

Fast Track Corporate Insolvency Resolution Process

Under Section- 55 of the Code, the yardstick for requesting Fast Track Resolution depends on the debtor income, assets and volume of debt. This covers the procedure from inception of insolvency till the acceptance of such resolution by the National Company Law Tribunal (NCLT), which concludes the procedure. The entire procedure is concluded within 90 days. Although, the National Company Law Tribunal may, if contented, increase the period of 90 days by another 45 days.

Voluntary winding up of a company

Under the Companies Act, 2013, the Corporate Debtor (entrepreneur) with other partners can formally resolve to voluntarily wind up the business of the company and thus, dissolve it under Section- 304. The aim of voluntarily winding up a company is to enable the creditors and debtors to settle their issues among themselves without having to go to Court. However, voluntary winding up is only available to solvent companies i.e. companies having more assets than liabilities.

How can the Government provide relief/ support to such entrepreneurs?

First, it is not entirely fair to tax such business houses but become their support system in tough times primarily because businesses like CCD are private and therefore, they cannot be given direct bailout packages or financial help like in the case of Air India etc. However, these businesses have shareholders who are the common people or in other words the electorate and when such businesses dissolve the share holders are impacted terribly. Since share holders are the investors they need to be protected for building nation economy.

Now the question is how the Government can help well before the naming and shaming of such entrepreneurs begin. The law, local investigating agencies as well as the government must identify, whether the entrepreneur is trying to find a solution or whether he is trying to evade paying back the money. Moreover, the Government agencies should have cells which can work out a plan to save the business house through mergers etc. though all this requires a decent amount of time.

Therefore, the Government can try and make amends in the present law to go all out to help already established businesses. This will act as an amazing booster to other business houses to enhance their performance because they will have the backing of the Government. The Government through fair and impartial means must identify who has cheated by design or who has been a victim of market trends.

Solutions we provide as a NCLT lawyer in Indore

  1. Sec. 2 (41) Application for change in financial year
  2. Sec. 7 (7) Application to Tribunal where company has been incorporated by furnishing false or incorrect info or by any
    fraudulent action.
  3. Sec. 14 (1) Conversion of public company into a private company.
  4. Sec. 55 (3) Application for issue further redeemable preference shares.
  5. Sec. 58 (3) Appeal against refusal of registration of shares.
  6. Sec. 59 Appeal for rectification of register of member.
  7. Sec. 62 (4) Appeal against order of Govt. fixing terms and conditions for conversion of debentures and shares.
  8. Sec. 71 (9) Petition by Debenture-trustees.
  9. Sec. 71 (10) Application in the event of failure of redeeming of debentures.
  10. Sec. 73 (4) Application by deposition for repayment of deposit or interest.
  11. Sec. 74 (2) Application to allow further time as considered reasonable to the company to repay deposits.
  12. Sec. 97 (1) Application for calling of Annual General meeting. 1,000/-
  13. Sec. 98 (1) Application for calling of general meeting of company other than annual general meeting
  14. Sec. 119 (4) Petition to pass an order directing immediate inspection of minute’s books or directing a copy thereof be sent forthwith to person requiring it.
  15. Sec. 130 (1) Application for re-opening of books of account, if made byany person other than Central Government, Income Tax authorities, SEBI or any other statutory regulatory body or authority.
  16. Sec. 131 (1) Application by company for voluntary revision of financial statement on Board’s report.
  17. Sec. 140 (4) Application for not sending the copy of representation of auditor to the members.
  18. Sec. 140 (5) Application by any other person concerned for change of auditors.
  19. Sec. 169 (4) Application for not sending copies of representation 1,000/-
  20. Sec. 213 Application to Tribunal for investigation into company affairs.
  21. Sec. 218 (1) Application for approval for action proposed against employee.
  22. Sec. 222 (1) Application for imposition of restrictions on securities.
  23. Sec. 241 (1) Application in cases of oppression and mismanagement.
  24. Sec. 242 (4) Application for regulating the conduct of company.
  25. Sec. 243 (1) (b) Application for appointment as Managing Director
  26. Sec. 244 (1) Application for waiver of requirement specified in clause (a) or (b) of Sec. 244 (1)
  27. Sec 245 Class action suits
  28. Sec. 441 Application for compounding of certain offences.
  29. Section 421 Appeals to NCLAT

For any query you may call

Advocate J. S. Rohilla

Indore: 88271 22304

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