NATIONAL COMPANY LAW TRIBUNAL (NCLT)
Context: The National Company Law Tribunal (NCLT), Kochi bench, on directed for initiation of Corporate Insolvency Resolution Process (CIRP) under Insolvency & Bankruptcy Code (IBC), 2016 and appointed an Interim Resolution Professional (IRP) for Hindustan News Print Ltd.(HNL).
Hindustan Paper Corporation Limited (HPC), the parent company of HNL,is under liquidation as per the orders of the NCLT, New Delhi Bench and the National Company Law Appellate Tribunal (NCLAT). On 25.11.2019, the NCLT, New Delhi granted permission to the Liquidator, HPC to sell the 100% shareholding of HPC in HNL to the Government of Kerala. ABOUT NATIONAL COMPANY LAW TRIBUNAL
The National Company Law Tribunal is a quasi-judicial body in India that adjudicates issues relating to Indian companies. The tribunal was established under the Companies Act 2013. It was constituted on 1 June 2016 by the government of India and is based on the recommendation of the Justice Jain committee on law relating to insolvency and winding up of companies. All proceedings under the Companies Act, including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies shall be disposed of by the National Company Law Tribunal. It is the adjudicating authority for insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016. No criminal court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Tribunal or the Appellate Tribunal is empowered to determine by or under this Act or any other law for the time being in force. Further, no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or any other law for the time being in force, by the Tribunal or the Appellate Tribunal. BENCHES: The tribunal has following benches in operation:
- 6 at New Delhi (one being the principal bench).
- 5 at Mumbai
- 3 at Hyderabad (of which 1 at Amaravathi).
- 2 each at Ahmedabad, Chennai and Kolkata.
- 1 each at Allahabad, Bengaluru, Chandigarh, Cuttack, Jaipur, Kochi, and Guwahati.
PRESIDENT: Justice M.M. Kumar, a retired Chief Justice of the Jammu & Kashmir High Court has been appointed President of the Tribunal.
POWERS: The National Company Law Tribunal has the power under the Companies Act to adjudicate proceedings:
- Initiated before the Company Law Board under the previous act (the Companies Act 1956);
- Pending before the Board for Industrial and Financial Reconstruction, including those pending under the Sick Industrial Companies (Special Provisions) Act, 1985;
- Pending before the Appellate Authority for Industrial and Financial Reconstruction; and
- Pertaining to claims of oppression and mismanagement of a company, winding up of companies and all other powers prescribed under the Companies Act.
APPEALS: Decisions of the tribunal may be appealed to the National Company Law Appellate Tribunal, the decisions of which may further be appealed to the Supreme Court of India on a point of law. The Supreme Court of India has upheld the Insolvency and Bankruptcy Code in its entirety.
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