03 June 2016 Current Affairs: Union Ministry of Corporate Affairs (MCA) has notified the constitution of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) with immediate effect on 1 June 2016.
Justice SJ Mukhopadhaya, Judge (Retd.), Supreme Court of India appointed as the Chairperson of the NCLAT while Justice MM Kumar, Judge (Retd.) appointed as the President of the NCLT.Initially, NCLT will have eleven Benches, two at New Delhi and one each at Ahmedabad, Allahabad, Bengluru, Chandigarh, Chennai, Guwahati, Hyderabad,Kolkata and Mumbai.
With the constitution of the NCLT, the Company Law Board (CLB) constituted under the Companies Act, 1956 stands dissolved.Both the NCLT and NCLAT were constituted under the Companies Act, 2013 which replaced the Companies Act, 1956. The Act came into force on 12 September 2013.
National Company Law Tribunal (NCLT) : NCLT will exercise and discharges such powers and functions that were conferred on it through the Companies Act, 2013 or any other law for the time being in force.
The President shall be a person who is or has been a Judge of a High Court for five years.
A person shall not be qualified for appointment as a Judicial Member unless he—
(a) is, or has been, a judge of a High Court; or
(b) is, or has been, a District Judge for at least five years; or
(c) has, for at least ten years been an advocate of a court.
National Company Law Appellate Tribunal (NCLAT) : NCLAT constituted to hear appeals against the orders of the Tribunal (NCLT).
1. The chairperson shall be a person who is or has been a Judge of the Supreme Court or the Chief Justice of a High Court.
2.A Judicial Member shall be a person who is or has been a Judge of a High Court or is a Judicial Member of the Tribunal for five years.
3.A Technical Member shall be a person of proven ability, integrity and standing having special knowledge and experience, of not less than twenty-five years, in law, industrial finance, industrial management or administration, industrial reconstruction, investment, accountancy, labour matters, or such other disciplines related to management, conduct of affairs, revival, rehabilitation and winding up of companies.
The President of the NCLT and the chairperson and Judicial Members of the NCLAT will be appointed after consultation with the Chief Justice of India.