What Is the National Company Law Appellate Tribunal (NCLAT)?

The National Company Law Appellate Tribunal (NCLAT) is India’s apex appellate authority for corporate disputes, including matters related to the Companies Act, 2013, Insolvency and Bankruptcy Code (IBC), 2016, and competition law. It hears appeals against decisions made by the National Company Law Tribunal (NCLT) and other regulatory bodies like the Competition Commission of India (CCI) and Securities and Exchange Board of India (SEBI).

Functions and Jurisdiction of NCLAT

Appeals Against NCLT Orders – NCLAT reviews decisions made by NCLT in company law matters, including shareholder disputes, mergers, and corporate governance issues.

Insolvency and Bankruptcy Cases – It serves as an appellate authority for cases under the Insolvency and Bankruptcy Code (IBC), 2016, including decisions on resolution plans and liquidation orders.

Competition Law Appeals – NCLAT hears appeals against orders passed by the Competition Commission of India (CCI) regarding anti-competitive practices and market dominance.

SEBI Appeals – The tribunal also handles appeals related to SEBI decisions on securities market violations.

Binding Authority – NCLAT decisions can be challenged only before the Supreme Court of India, making it a crucial institution for corporate litigation.

Legal Framework and Protections

Companies Act, 2013: NCLAT was established under this Act to provide a streamlined appellate process for corporate matters.

Insolvency and Bankruptcy Code, 2016: It plays a key role in reviewing insolvency proceedings and protecting creditor and debtor rights.

Competition Act, 2002: NCLAT ensures fair competition in markets by reviewing CCI decisions.

Supreme Court Appeals: If parties are dissatisfied with NCLAT’s ruling, they can appeal to the Supreme Court of India.

Example

In the Essar Steel insolvency case (2019), NCLAT modified the resolution plan approved by NCLT, ensuring fair distribution of funds among financial and operational creditors. The matter was later taken to the Supreme Court, which upheld NCLAT’s decision, reinforcing its role in insolvency resolution.