Jurisdiction to NCLT - Key Aspects

1. NPS Chawla
(B.Com, LL.M., FCS, MBA)
Principal Associate
Vaish Associates Advocates
Regional Council Member, NIRC-ICSI

2. Agencies Dealing with Company Law Matters
State High
Court(s)
CLB
Winding up
petitions,
Compromise &
Arrangements,
reduction of
capital,
restoration of
name & appeal
from CLB
Rectification of
registers,
transfer/transmi
ssion of shares,
oppression
mismanagement
, compounding
of offences etc.
Revival and
rehabilitation of
Sick Companies
BIFR/ AAIFR
Existing Structure
npschawla@vaishlaw.com

3. NCLT
BIFR
npschawla@vaishlaw.com
Powers in terms of
the LLP Act, 2008
High Court
Company Law
Board
Class Action Suits
Structure after NCLT

4. The Insolvency and Bankruptcy Code, 2016 – Eleventh Schedule
Section 434 of Companies Act, 2013 - Transfer of certain pending proceedings
All matters, proceedings or cases pending
before CLB
Any person aggrieved by any decision or
order of the Company Law Board made
before such date
proceedings under the Co. Act, 1956,
including proceedings relating to
arbitration, compromise, arrangements
and reconstruction and winding up of
companies, pending immediately before
such date before any District Court or
High Court
npschawla@vaishlaw.com
Transferred to NCLT
File an appeal to the HC within 60 days
(Extension- 60 days) from the date of
communication of the decision of CLB to
him on any question of law
Transferred to the NCLT and it may
proceed to deal with such proceedings
from the stage before their transfer
Proceedings before BIFR / AAIFR
Proceedings before BIFR/
AAIFR will not get transferred
but shall abate

5. • Haryana
• Rajasthan
• UT of Delhi
New Delhi Bench
• Gujarat
• Madhya Pradesh
• UT od Dadra &
Nagar Haveli
• UT of Daman & Diu
Kolkata Bench
• Bihar & Odisha
• Jharkhand
• West Bengal
• UT of Andaman
& Nicobar
Guwahati Bench
• Arunachal Pradesh
• Assam & Manipur
• Mizoram &
Nagaland
• Meghalaya
• Sikkim & Tripura
Chandigarh Bench
• Himachal Pradesh
• Jammu & Kashmir
• Punjab
• UT of Chandigarh
Chennai Bench
• Kerala & Tamil
Nadu
• UT of Lakshadweep
• UT of Puducherry
• Karnataka
• Andhra
Pradesh
• Telangana
• Uttar Pradesh
• Uttarakhand
• Chhattisgarh
• Goa
• Maharashtra
New Delhi Principal Bench
Ahmedabad Bench
June 01, 2016
Bengaluru Bench Hyderabad Bench Allahabad Bench Mumbai Bench
34 functional
orders by NCLT
5 MCA
notifications so far
Jurisdiction of
Haryana challenged
Website fully
operational

6. NATIONAL COMPANY LAW APPELLATE TRIBUNAL
NEW DELHI
All appeals against orders of NCLT (any bench)
would be heard by NCLAT at New Delhi
Appeals against orders of CLB continue to be heard by
High Court

7. npschawla@vaishlaw.com
Criteria for Listing of matters before NCLT
NCLT, Principal Bench
 Companies having paid up
share capital more than INR 50
Lakhs, and
 As per special order of the
Hon’ble President of NCLT
 Section 245 of Companies Act,
2013 (CA,2013) – Class Action
Suits
 Application of Act to Foreign
Companies
 Section 394- Annual Reports of
Govt. Companies
NCLT, New Delhi Bench &
Other Benches
 Companies having paid up
share capital upto INR 50
Lakhs
 If no division bench is
available, then the
pecuniary limit of Rs. 50
lakhs will not apply
 Any other matter which
the President may
authorize by passing a
specific or general order

8. npschawla@vaishlaw.com
Provisions of NCLT & NCLAT under the Companies Act, 2013
Section 420(2) - Power
of Review
At any time within 2
years from the date of
the order, NCLT may,
rectify any mistake
apparent from the
record, amend any
order.
Section 421 - Appeal
from orders of Tribunal
Any person aggrieved
may appeal to NCLAT
within a period of 45
days from the date of
receiving the order.
(Plus 45 days
extension)
Section 422- Expeditious
disposal by Tribunal
and Appellate Tribunal
Dispose of
expeditiously within 3
Months
(Plus 90 days
extension)

9. npschawla@vaishlaw.com
Provisions of NCLT & NCLAT under the Companies Act, 2013
Section 424 - Procedure
before Tribunal and
Appellate Tribunal
 powers as are vested
in a civil court
 NCLT & NCLAT not
bound by CPC but
shall be guided by the
principles of natural
justice
 Any order by NCLT
or NCLAT may be
enforced by Tribunal
in the same manner as
if it were a decree
made by a court
Section 425 - Power to
punish for contempt
The NCLT and
NCLAT shall have the
same jurisdiction,
powers and authority
in respect of contempt
of themselves as the
High Court
Section 433- Limitation
The provisions of the
Limitation Act, 1963
shall, as far as may be,
apply to proceedings
or appeals before the
Tribunal or the
Appellate Tribunal, as
the case may be.

10. npschawla@vaishlaw.com
NCLT Rules, 2016
Production of Evidence by
Affidavit
(1) NCLT may direct the parties to
give evidence, if any, by
affidavit.
(2) where NCLT considers it
necessary in the interest of
natural justice, it may order
cross-examination of any
deponent on the points of
conflict through information and
communication technology
facilities such as video
conferencing
Production of additional
evidence before the Bench
the parties not be entitled to produce
additional evidence, either oral or
documentary, which was in the
possession or knowledge but was
not produced before the Inspector,
appointed but if the Bench requires
any additional evidence or document
to be produced or any witness to be
examined or if the Inspector
appointed has not given sufficient
opportunity to the party to adduce
evidence, the Bench, may allow such
evidence to be produced.

11. npschawla@vaishlaw.com
NCLT Rules, 2016
Summoning of witnesses &
recording evidence
(1) If a petition or application is
moved for summoning of
witnesses, NCLT shall issue
summons for appearance of such
witness unless it considers that
their appearance is not necessary
for the just decision of the case;
(2) Witness will get TA/ DA
Application for Execution
For execution of order passed by the
Tribunal, the holder of an order shall
make an application to NCLT

12. NCLT – Adjudicating Authority for Corporate Persons
No power with Civil Court; Fraudulent / malicious initiation of proceedings
npschawla@vaishlaw.com
Appeal against the order of NCLAT to Supreme Court, within 45 days
Appeal to NCLAT within 30 days (+30 days) as per Section 61 of IBC
For computing the period of limitation, the period during which such
moratorium is in place shall be excluded
NCLT – Insolvency Resolution & liquidation for Corporate Persons (Corporate Debtors &
Personal Guarantors) – where Registered Office of Corporate Person is situated

13. Powers of NCLT under the Insolvency and Bankruptcy Code, 2016
Approval of Resolution Plan (RP) by NCLT- to be binding on all stakeholders involved
in the RP
npschawla@vaishlaw.com
Appointment of the resolution professional by the NCLT (Section 22)
NCLT declare moratorium for 180 days (Section 13 & 14).
File Application with NCLT- for seeking extension of period beyond 180 days (Section
12(2))
File application to NCLT- NCLT may either accept or reject the application within 14
days (Section 7,9 & 10)

14. Powers of NCLT under the Insolvency and Bankruptcy Code, 2016
NCLT may impose penalty which shall not be less than Rs. 1,00,000/- but may extend to
Rs. 1,00,00,000/- on transactions with fraudulent intentions
npschawla@vaishlaw.com
Where application not disposed of within the period specified – NCLT/NCLAT extend
time by maximum 10 days
Civil court not to have jurisdiction in the matters pertaining to NCLT and NCLAT
Appellate Tribunal National Company Law Appellate Tribunal
Fast track corporate insolvency resolution process

15. Section 253- Determination of Sickness
Section 254- Application for Revival & Rehabilitation
Section 255-Exclusion of certain time in computing period of limitation
Section 256-Appointment of interim administrator
Section 257-Committee of Creditors
Section 258- Order of Tribunal
Section 259-Appointment of Administrator
Section 260-Powers and Duties of Company Administrator
Section 261-Scheme of revival and rehabilitation
Section 262-Sanction of scheme
Section 263-Scheme to be binding
Section 264-Implementation of scheme
Section 265 -Winding up of company on report of company
administrator
Section 266-Power of Tribunal to assess damages against delinquent
directors, etc
Section 267- Punishment for certain offences
Section 268- Bar of jurisdiction
Section 269- Rehabilitation and Insolvency Fund
Omitted
npschawla@vaishlaw.com
The Insolvency and Bankruptcy Code, 2016
The Eleventh Schedule - Amendments to the Companies Act, 2013
Chapter XIX- Revival & Rehabilitation of Sick Companies

16. (1) The winding up of a company
may be either—
(a) by the Tribunal; or
(b) voluntary.
(2) Notwithstanding anything
contained in any other Act, the
provisions of this Act with
respect to winding up shall apply
to the winding up of a company
in any of the modes specified
under sub-section (1).
npschawla@vaishlaw.com
The Insolvency and Bankruptcy Code, 2016
The Eleventh Schedule - Amendments to the Companies Act, 2013
Section 270- Modes of Winding Up
Section 270 of the Companies
Act, dealing with Modes of
winding up has been amended to
only include Winding up by
Tribunal. The voluntary winding
up provisions have been shifted
to IBC.
Modification

17. npschawla@vaishlaw.com
The Insolvency and Bankruptcy Code, 2016
The Eleventh Schedule - Amendments to the Companies Act, 2013
Section 271- Circumstances in which company may be wound up by Tribunal
(1) A company may, on a petition under section 272, be wound up by the Tribunal,—
 if the company is unable to pay its debts;
 if the company has, by special resolution, resolved that the company be wound up by the Tribunal;
 if the company has acted against the interests of the sovereignty and integrity of India, the security of the
State, friendly relations with foreign States, public order, decency or morality;
 if the Tribunal has ordered the winding up of the company under Chapter XIX;
 if on an application made by the Registrar or any other person authorized by the Central Government by
notification under this Act, the Tribunal is of the opinion that the affairs of the company have been
conducted in a fraudulent manner or the company was formed for fraudulent and unlawful purpose or
the persons concerned in the formation or management of its affairs have been guilty of fraud,
misfeasance or misconduct in connection therewith and that it is proper that the company be wound up;
 if the company has made a default in filing with the Registrar its financial statements or annual returns
for immediately preceding five consecutive financial years; or
 if the Tribunal is of the opinion that it is just and equitable that the company should be wound up.
Highlighted clauses to be removed from a date yet to be notified

18. THANK YOU
Disclaimer: Please note that this presentation is based on the limited information / documentation available with us and is subject
to review of further documentation to be received in this regard. While every care has been taken to ensure accuracy of this
presentation, Vaish Associates Advocates shall not assume any liability / responsibility for any errors that might creep in. The material
herein does not constitute / substitute professional advice that may be required before acting on any matter.
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