NCLT
Why in news: The government is planning to have more benches of the National Company Law Tribunal on the basis of case load, amid rising number of insolvency cases coming up before the NCLT.
Background:
Currently, there are 11 NCLT benches in different parts of the country, including two in the national capital.
About National Company Law Tribunal:
What is it? National Company Law Tribunal (NCLT) is a quasi-judicial body that will govern the companies in India. It was established under the Companies Act, 2013 and is a successor body of the Company Law Board.
Powers: NCLT will have the same powers as assigned to the erstwhile Company Law Board (which are mostly related to dealing with oppression and mismanagement), Board for Industrial and Financial Reconstruction (BIFR)(revival of sick companies) and powers related to winding up of companies (which was available only with the High Courts).
Background: The setting up of NCLT as a specialized institution for corporate justice is based on the recommendations of the Justice Eradi Committee on Law Relating to Insolvency and Winding up of Companies.
Sources: the hindu.
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