NATIONAL COMPANY LAW APPELLATE TRIBUNAL – POLITY
News: NCLAT upholds penalty on Google;
sets aside certain directions issued by CCI
What's
in the news?
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The National Company Law Appellate
Tribunal (NCLAT) upheld the ₹1,337 crore fine imposed on Google by the
Competition Commission of India (CCI).
●
While holding that the CCI investigation
did not violate principles of natural justice, the tribunal set aside certain
directions issued by the CCI.
National
Company Law Tribunal:
●
The Central Government has constituted
National Company Law Tribunal (NCLT) under section 408 of the Companies Act, 2013 based on the
recommendation of the Justice Eradi
committee on law relating to insolvency and winding up of companies.
Benches:
●
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.
Members:
●
The NCLT bench is chaired by a judicial member who is supposed to be a
retired or a serving High Court Judge and a technical member who must be from the Indian Corporate Law Service,
ICLS Cadre.
Term
of Members:
●
The Companies Act fixes the term of office
of chairperson and members of all NCLTs at five
years or 65 years, whichever is earlier.
Functions:
●
The National Company Law Tribunal (NCLT)
is a quasi-judicial body that
adjudicates issues relating to Indian companies.
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All proceedings under the Companies Act
such as arbitration, arrangements, compromise, reconstruction, and winding up
of the company will be disposed of by the Tribunal.
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The National
Company Law Tribunal is the adjudicating authority for the insolvency
resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy code, 2016.
●
The NCLT has the authority to dispose of
cases pending before the Board for Industrial and Financial Reconstruction
(BIFR), as well as those pending under the Sick Industrial Companies (Special
Provisions) Act, 1985.
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It also to take up those cases pending
before the Appellate Authority for Industrial and Financial Reconstruction.
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It can also take up cases relating to the
oppression and mismanagement of a company.
Appeals:
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Decisions taken by the NCLT can be
appealed to the National Company Law
Appellate Tribunal (NCLAT). The decisions of the NCLAT can be appealed to
the Supreme Court on a point of law.
●
However, any appeal against the orders of
the CLB before the constitution of the NCLT would continue to lie before the
relevant High Court and not the NCLAT.