NCLT or the National Company Law tribunal acts as the adjudicating authority when there is insolvency resolution process to be handled. This adjudicating body is specific to the debtors where the debtors are the corporate debtors. The purpose of this blog is to make you intimate with the powers of this tribunal so that you have a deeper understanding of what you might have to go through if you come across a case of insolvency.
Powers of NCLT
NCLT is established under the IBC 2016. This adjudicating authority has the following powers and responsibilities:
- The ones to exercise the powers of the tribunal are the Benches that constitute of one president, one judicial member, and one technical member.
- After the tribunal has given the opportunity to the parties of being and heard and then have heard these parties, it can pass orders that it thinks are fit.
- NCLT has the power to scrutinize its own orders.
- If there is a person who doesn’t agree of certain decision that the tribunal has made, then that person can appeal against a said decision to the Appellate Tribunal
- The NCLT and the Appellate Tribunal shall not be limited or bound by the procedures that have been laid down by the Code of Civil Procedure. However, the principle of natural justice shall guide these bodies. The tribunals have the power to regulate their own procedure. However, this power is subject to the Provisions of the aforementioned act and any rules that are made by the central government.
- The NCLT has the same powers as that of the vested court under the Code of Civil Procedure, 1908 for the purpose of discharging the functions under this act while trying a suit in regards of the following matters:
- Summoning and enforcing the attendance of any person.
- Examining the above person on oath.
- Requiring the production of documents and discovery of documents.
- Receiving evidence/evidence on affidavits.
- Reacquiring the public record, the document of a copy of records that are subject to the provisions of Indian Evidence Act 1872.
- Reviewing its own decisions
- Issuing commissions in order to examine the witnesses and the documents.
- The NCLT can enforce any order that it gives in the same manner as a court would enforce it.
- Within Sections 193, and section 228, all the proceedings before the NCLT shall be deemed as judicial proceedings.
- No civil court can have jurisdiction to entertain any suit of proceeding that is entertained by the NCLT at the time of law being in force. Under this act, no court or any other authority than NCLT shall grant an injunction for the time the law is in force.
The above mentioned are the powers of NCLT. If you want more information about other intricacies association with Insolvency and Bankruptcy, you can browse through our Knowledgebase.
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