The Ministry of Corporate Affairs (MCA) is in the process of formulating draft guidelines to streamline and reduce delays in the proceedings of the National Company Law Tribunal (NCLT). NCLT, established in 2016 under the Companies Act, 2013, serves as a quasi-judicial body handling civil disputes arising from the Companies Act. It consists of a President and various Judicial and Technical Members. NCLT operates outside the constraints of the Code of Civil Procedure, guided by natural justice principles. It holds authority over insolvency resolution processes for companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.
Prelims pointer
- Ministry of Corporate Affairs (MCA): The government department responsible for regulating corporate affairs in India, overseeing company law and promoting corporate governance.
- National Company Law Tribunal (NCLT): A quasi-judicial body established under the Companies Act, 2013, tasked with handling civil disputes related to corporate matters and insolvency resolution.
- Companies Act, 2013: Indian legislation that outlines the legal framework for the functioning of companies in the country, including their formation, operation, and dissolution.
- Insolvency and Bankruptcy Code, 2016: A comprehensive law in India that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms, and individuals.
- Natural Justice: The principle of fairness and impartiality in legal proceedings, ensuring that both parties are heard and decisions are made without bias.