Govt to set up NCLT after Companies Bill is passed: Pilot

The government is hopeful of setting up the much-awaited National Company Law Tribunal (NCLT), once the new Companies Bill is passed in Parliament, Corporate Affairs Minister Sachin Pilot said today.

"I have formally written to Minister of Parliament Affairs Kamal Nath for making sure that bill is taken up in the Rajya Sabha in Parliament session which resumes on Monday," he said.

The Companies Bill had been passed by the Lok Sabha in December last year, and is currently pending before the Rajya Sabha.

Speaking at a function at CLB while ingurating new court rooms, Pilot said he is hopeful that the Rajya Sabha will pass the Companies Bill on the this Parliament session, then we would be able to create NCLT.

"Now it is upto the wisdom of the members of the upper house and the Chairman of the Rajya Sabha," said Pilot, adding that the government is prepared for good discussion.

The Companies Bill, 2012 has provision for NCLT, which would come in place of Comapny Law Board. It would remove the hurdles of multiple jurisdiction in the sector, speeding up the adjudication of corporate disputes.

The proposed NCLT would have jurisdiction over corporate restructuring proposals once in place, which are now currently with the different high courts and thus it could save time and multiplicities.

The proposed NCLT will hear matters pending before the High Courts and quasi-judicia Authorities like CLB, Board for Industrial and Financial Reconstruction (BIFR) and Appellate Authority for Industrial and Financial Reconstruction (AAIFR).

It would reduce the burden of the High Courts and BIFR and AAIFR will be dissolved.