Context

Recently, National Company Law Appellate Tribunal (NCLAT) has reinstated Cyrus Mistry as chairman of Tata Sons.

About

• National Company Law Appellate Tribunal (NCLAT) was constituted under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of National Company Law Tribunal(s) (NCLT), with effect from 1st June, 2016.
• Hon’ble Justice Shri S.J. Mukhopadhaya, former Judge of the Supreme Court, is now the Chairperson of NCLAT.
• Functions:
  • NCLAT is also the Appellate Tribunal for hearing appeals against the orders passed by NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC), with effect from 1st December, 2016.
  • NCLAT is also the Appellate Tribunal for hearing appeals against the orders passed by Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC.
  • NCLAT is also the Appellate Tribunal to hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India (CCI) – as per the amendment brought to Section 410 of the Companies Act, 2013 by Section 172 of the Finance Act, 2017, with effect from 26th May, 2017.

Composition:

• The President of the Tribunal and the chairperson and Judicial Members of the Appellate Tribunal shall be appointed after consultation with the Chief Justice of India.
• The Members of the Tribunal and the Technical Members of the Appellate Tribunal shall be appointed on the recommendation of a Selection Committee consisting of:
  • Chief Justice of India or his nominee—Chairperson.
  • A senior Judge of the Supreme Court or a Chief Justice of High Court— Member.
  • Secretary in the Ministry of Corporate Affairs—Member.
  • Secretary in the Ministry of Law and Justice—Member.
  • Secretary in the Department of Financial Services in the Ministry of Finance— Member.

Conclusion

Tribunals have released pressure on ordinary courts. NCLAT has been doing well in adjudicating the business and company matters and saves times and resources of the involved parties.