Powers of National Company Law Tribunal (NCLT)

Under section 408 and 410 respectively the central government shall constitute a national
company law tribunal and national company law appellate tribunal.

The Tribunal and the Appellate Tribunal is not bound by the rules laid down in the Code of
Civil Procedure and is guided by the principles of natural justice, subject to the other
provisions of this Act and of any rules that are made by the Central Government. The
Tribunal and the Appellate Tribunal has the power to control its own procedure.

Further, as per section 430 of the CA, Act 2013, no civil court has the jurisdiction to consider
any suit or proceeding with reference to any matter which the Tribunal or the Appellate
Tribunal is empowered to decide.

National Company Law Tribunal enjoys a wide range of powers. Its powers include:

1. Power to seek assistance of Chief Metropolitan Magistrate.

2. De-registration of Companies.
3. Declare the liability of members unlimited.
4. De-registration of companies in certain circumstances when there is registration of
companies is obtained in an illegal or wrongful manner.
5. Remedy of oppression and mismanagement.
6. Aggrieved depositors have the remedy of class actions for seeking redressal for the
acts/omissions of the company which hurt their rights as depositors.
7. Power to investigate or for initiating investigation proceedings. An investigation can
be conducted even abroad.
8. Power to investigate into the ownership of the company.
9. Power to freeze assets of the company.
10. Power to impose restriction on any securities of the company.
11. Conversion of public limited company into private limited company.
12. If the company cannot or has not held an Annual General Meeting as required under
the Companies Act or a required Extraordinary General Meeting, then the
Tribunal has powers to call for a General Meetings.

National Company Law Appellate Tribunal (NCLAT)

Appeal from order of Tribunal can be raised to the National Company Law Appellate
Tribunal (NCLAT). Appeals can be made by any person aggrieved by an order or decision of
the NCLT, within a period of 45 days from the date on which a copy of the order or decision
of the Tribunal.

On the receipt of an appeal from an aggrieved person, the Appellate Tribunal would pass
such orders, after giving an opportunity of being heard, as it considers fit, confirming,
changing or setting aside the order that is appealed against. The Appellate Tribunal is
required to dispose the appeal within a period of six months from the date of the receipt of the
appeal.
Composition of the National Company Law Tribunal:
Composition of the National Company Law Tribunal consists of a President and such number
of other Judicial and Technical Members as may be prescribed. The President of the Tribunal
shall be appointed by the Central Government after consultation with Chief Justice of India.
The Members are to be appointed by the Central Government on the recommendation of a
Selection Committee.
President of National Company Law Tribunal:
A person who is or has been judge of a High Court for five years is eligible to be appointed as
president of National Company Law Tribunal.
Judicial Member:
A person shall not be qualified for appointment as a Judicial Member unless he:

i. Is or has been a judge of High Court; or

ii. Is or has been a District Judge for at least five years; or
iii. Has, for at least 10 years been practicing as an advocate

“Judicial Member” includes President of the Tribunal.