National Company Law Appellate Tribunal’s bench constituted in Chennai
National Company Law Appellate Tribunal’s bench has been established in Chennai. It has been established in Chennai because its requirement was felt in the Southern part of the country. However, the Delhi bench will work as the principal bench.
As per the notification issued in this context, the Chennai bench of NCLAT will hear petitions filed against the orders of the National Company Law Tribunal (NCLAT) of Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Lakshadweep, and Puducherry.
According to the notification, the New Delhi Bench of NCLAT will be known as Pradhan Peeth (Principle Bench). It will continue to hear petitions other than appeals having jurisdiction over the Chennai bench of NCLAT.
What is NCLAT?
The NCLAT – National Company Law Appellate Tribunal was constituted under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of the NCLT. It is a tribunal that has been created to hear the appeals against the orders of the National Company Law Tribunal (NCLT) from June 01, 2016.
How does it work?
In case of insolvency of a company, the matter goes to the National Company Law Tribunal (NCLT). An Insolvency Professional is appointed to handle such cases. This officer has to sort out the task of reviving the company within 180 days. If the company is revived within 180 days, then it starts functioning again. If it doesn’t, then the company is considered bankrupt.
Importance of NCLAT
It also works as an Appellate Tribunal to hear and dispose of an appeal against an order passed or order made by any Competition Commission of India (CCI). This power has been given to NCLAT through an amendment brought in Section 410 of the NCLAT Companies Act 2013. According to Section 172 of the act, the Finance Act, 2017 has been effective from May 26, 2017.