The National Company Law Appellate Tribunal was constituted under section 410 of the Companies Act, 2013. The New Delhi Bench of NCLAT will be known as the principal bench.
A bench of the National Company Law Appellate Tribunal has been set up in Chennai. It has been established in Chennai because the need was felt in the southern part of the country. However, the Delhi bench will serve as a principal bench.
As per the notification issued in this regard, the Chennai Bench of nclat will hear the petitions filed against the orders of the National Company Law Tribunal (NCLAT) of Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Lakshadweep, and Puducherry.
According to the notification, the New Delhi Bench of the Nclat will be known as the principal bench. It will continue to hear petitions other than jurisdictions appeals on the Chennai bench of the NCLAT.
What is NCLAT?
The NCLAT-National Company Law Appellate Tribunal was constituted under section 410 of the Companies Act, 2013 to hear appeals against nclat orders. It is a tribunal designed to hear appeals against the orders of the National Company Law Tribunal (NCLAT) from June 01, 2016.
How does it work?
In case of insolvency of a company, the matter goes to the National Company Law Tribunal (NCLAT). An insolvency professional is appointed to dispose of such cases. The officer has to resolve the task of reviving the company within 180 days. If the company is revived within 180 days, it starts working again. If that’s not the case, the company is considered bankrupt.
Importance of NCLAT
It also serves as the appellate tribunal for hearing and settlement of appeal against any order passed or ordered by the Competition Commission of India (CCI). This power has been given to nclat through an amendment brought to section 410 of the NCLAT Companies Act, 2013. As per section 172 of the Act, the Finance Act, 2017 has been effective from 26th May 2017.