Note4Students
From UPSC perspective, the following things are important :
Prelims level: NCLAT, NCLT
Why in the News?
The Supreme Court has overturned the National Company Law Appellate Tribunal’s (NCLAT) order that approved a deal between an edtech firm and the Board of Control for Cricket in India (BCCI) to settle an overdue payment.
Three-Judge Bench Observations in Byju’s Case
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About National Company Law Appellate Tribunal (NCLAT):
| Details | |
| Establishment | Established on 1 June 2016 under the Companies Act, 2013. |
| Purpose | Serves as an appellate authority to hear appeals against orders of the National Company Law Tribunal (NCLT). |
| Jurisdiction | Hears appeals related to: – Decisions made by NCLT – Orders of the Insolvency and Bankruptcy Board of India (IBBI) – Orders from the Competition Commission of India (CCI). |
| Appeals to Supreme Court | Decisions of NCLAT can be appealed to the Supreme Court of India. |
| Composition | Comprises a Chairperson and other members appointed by the central government, with the Chairperson typically being a retired judge of the Supreme Court or High Court. |
| Functions | Reviews and adjudicates matters related to company law and insolvency, ensuring justice against NCLT orders. |
| Location | Headquartered in New Delhi. |
| Significance | Plays a critical role in corporate governance, maintaining transparency and accountability in the corporate sector. |
| Relationship with NCLT | NCLT acts as the adjudicating authority, while NCLAT provides a platform for appeals, ensuring a checks-and-balances system. |
| Integration with IBC | Supports the objectives of the Insolvency and Bankruptcy Code, 2016, streamlining insolvency resolution processes. |
PYQ:[2018] How far do you agree with the view that tribunals curtail the jurisdiction of ordinary courts? In view of the above, discuss the constitutional validity and competency of the tribunals in India. |
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