Press Information Bureau

Government of India

Ministry of Corporate Affairs

24-November-2011 16:19 IST

The Government proposes to set up National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) which will replace Company Law Board, Board for Industrial and Financial Reconstruction and Appellate Authority for Industrial and Financial Reconstruction.

Provisions regarding constitution of NCLT and NCLAT were incorporated in the Companies (Second Amendment) Act, 2002. The Act was, however, challenged in the Madras High Court. The matter was finally decided by the Supreme Court vide their judgment dated 11.5.2010. The revised Companies Bill, 2011, incorporating the guidelines provided by the Supreme Court in their said judgment, is likely to be introduced in the Parliament shortly.

The Union Minister Dr. M. Veerappa Moily gave this information in a written reply in Lok Sabha today.

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Samir/BS

National Company Law Tribunal reform: proposal to replace prior corporate adjudicatory bodies and introduce a revised Companies Bill. Proposal to establish a National Company Law Tribunal and a National Company Law Appellate Tribunal to replace the Company Law Board, the Board for Industrial and Financial Reconstruction and the Appellate Authority for Industrial and Financial Reconstruction; a revised Companies Bill, incorporating prior judicial guidance, is to be introduced in Parliament to implement the consolidated tribunal framework.