Sec 408: National Company Law Tribunal and its composition
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According to Section 408 of the Companies Act of 2013, the Central Government shall establish the National Company Law Tribunal by notification published in the Official Gazette (NCLT). The Companies Act, 2013, or any other currently in effect law, will be used by the National Company Law Tribunal to exercise and carry out the duties and powers that have been or may be granted under those laws.
The Justice Eradi Committee, established in 1999 to review the laws relating to Insolvency and Winding up of Companies, first put forth the idea of creating NCLT. The committee advised against creating a national tribunal. The government established the National Company Law Tribunal on June 1, 2016, which helped put some of the Companies Act, 2013,'s provisions into effect and will also aid in putting the bankruptcy code into effect.
Composition: A President and any additional judicial and technical members that may be required make up the National Company Law Tribunal's membership. After consulting with the Chief Justice of India, the Central Government shall appoint the Tribunal's president. The members will be chosen by the central government based on a selection committee's recommendations.
11 benches will initially be present in the NCLT, according to the notification that was published. New Delhi will have two benches, and Allahabad, Ahmedabad, Bengaluru, Chennai, Chandigarh, Guwahati, Hyderabad, Kolkata, and Mumbai will have one bench each. The NCLT will have 63 members and 21 benches altogether. The Appellate Authority for Industrial and Financial Reconstruction, as well as the Board for Financial and Industrial Reconstruction, will be handled by the NCLT in accordance with the provisions outlined in the Companies Act of 2013, which also states that the NCLT will replace the Company Law Board.