NCLT, NCLAT to help in reducing delay in appeals: govt

The tribunals will help avoid multiplicity in litigations

The setting up of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) would help in avoiding multiplicity in litigations and reduce delay in appeals, the Parliament was informed today.

NCLT and NCLAT have been proposed in the Companies Bill, 2011 and these tribunals would be operational once the bill is enacted.

In a written reply to the Lok Sabha, Minister of State for Corporate Affairs R P N Singh said establishment of the two tribunals would avoid multiplicity and levels of litigation before High Courts and quasi-judicial authorities like Company Law Board and Board for Industrial and Financial Reconstruction.

 

Once set up, matters before them would be heard and decided by NCLT.

Singh said the setting of the two tribunals would "streamline the appellate procedure with an appeal against order of the NCLT lying before NCLAT and with further appeal against the order of NCLAT lying with the Supreme Court only on points of law, thereby reducing the delay in appeals".

The Companies Bill 2011 was introduced in the Lok Sabha in December last year.

Later, the bill was referred to the Parliamentary Standing Committee on Finance and the panel presented its report to the Lok Sabha Speaker last month.