“NCLT – Constitution, Transitional Provisions
and Powers of NCLT / NCLAT”
(Under Companies Act, 2013)
CS Satwinder Singh
Central Council Member, NIRC-ICSI
Partner,
Vaish Associates Advocates
19th October, 2015
satwinder@vaishlaw.com
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Jurisdiction under the Companies Act, 1956
Agencies Dealing with
Company Law Matters
State High
Court(s)
CLB
BIFR/ AAIFR
Presidency
Magistrate or a
Magistrate of the
first class
Winding up
petitions,
Compromise &
Arrangements,
reduction of
capital,
restoration of
name & appeal
from CLB
Rectification of
registers,
transfer/transmis
sion of shares,
oppression
mismanagement,
compounding of
offences etc.
Revival and
rehabilitation of
Sick Companies
Offences under
the Old Act
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SC: Clearing the way for Constitution of NCLT/ NCLAT
 In a recent landmark judgment by the Hon’ble Supreme Court ('SC') vide its
order dated 14.05.2015 in the matter of Madras Bar Association vs. Union of
India [Writ Petition (C) No. 1072 of 2013], constitutional validity of National
Company Law Tribunal ('NCLT') and National Company Law Appellate
Tribunal ('NCLAT') under Companies Act, 2013 was again upheld.
 Background:- Madras Bar Association ('the Association') filed a writ petition
before SC alleging that provisions relating to establishment and constitution of
NCLT/ NCLAT were ultra vires the provisions of Article 14 of the Constitution
of India. Constitution Bench of SC on May 14, 2015 rejected the Association's
allegation, upheld the constitutionality of Tribunals and observed that it is "a
common feature/practice to provide one appellate forum wherever an enactment
is a complete Code for providing judicial remedies". However, certain defects
have been pointed out with regard to the appointment provisions etc. in the 2013
Act.
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Recent News Article - NCLT
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NCLT – A New Era to Corporate Adjudication
 Upon constitution of NCLT, the powers and jurisdiction of following agencies
in respect of corresponding aspects shall vest with NCLT:
• State High Court(s): Cases relating to arrangement or compromise, winding
up, reduction of capital, restoration of name of the company, appeals from
CLB orders u/s 10F of the Old Act.
• BIFR/ AAIFR: Cases pertaining to revival and rehabilitation of sick
companies.
• CLB: Cases pertaining to rectification of register of members, complaints
relating to refusal to transfer/ of transmission of shares, matters relating to
oppression and mismanagement and other matters relating to investigations
& compounding of offences.
 Appeals against the order(s) of NCLT to be heard by NCLAT and appeals
against the order of NCLAT to be heard by the Hon’ble Supreme Court
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Moving from Companies Act, 1956 to Companies Act,
2013 – Transitional Provisions
 Transfer of pending proceedings [from a date to be notified by MCA(“Effective
Date”)]:
• All matters pending before CLB immediately before the Effective Date shall
stand transferred to NCLT. NCLT shall dispose of such matters in
accordance with the provisions of the New Act (Section 434(1) (a)). Appeal
from order of CLB made before the Effective Date may be filed with High
Court within 60 days from date of communication of order on question of
law. Another 60 days with condonation of delay.
• The draft rules related to NCLT, under Rule 102 provides for all cases
reserved for order prior to the Effective Date to be reopened and reheard by
NCLT.
• All proceedings under the Old Act pending before District Court or High
Court shall stand transferred to NCLT and NCLT may proceed to deal with
such proceedings from the stage before their transfer (Section 434(1) (c)).
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Moving from Companies Act, 1956 Act to Companies
Act, 2013 – Transitional Provisions
 Abatement of proceedings (from a date to be notified by MCA):
• All inquiry/ appeal pending before BIFR/ AAIFR respectively or any
proceedings pending, under SICA, before commencement of the New Act,
shall stand abated (Section 434(1)(d));
• However, companies in respect of which an appeal or inquiry stands abated
can make reference to NCLT in terms of the New Act, within 180 days from
commencement of the New Act.
 Dissolution of CLB: (Section 465 and Section 466)
• Until a date is notified under Section 434 (1) of the New Act, the provisions
of the Old Act, in regard to jurisdiction, powers, authority and functions of
CLB and court, shall continue to apply, as if the Old Act has not been
repealed.
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Moving from Companies Act, 1956 Act to Companies
Act, 2013 – Transitional Provisions
• Section 465 (2), further provides for the following:
 Any prosecution instituted under the repealed enactments and pending
immediately prior to commencement of the New Act, before any court (as
defined in the New Act), shall continue to be heard by the said Court and be
subject to provisions of the New Act.
 Any inspection, investigation or inquiry ordered or to be done under the Old
Act, shall continue to be proceeded with as if, such inspection, investigation
or inquiry has been ordered under the provisions under the New Act.
 Any matter filed with the Registrar, Regional Directors or the Central
Government under the Old Act, before commencement of the New Act and
not fully addressed by the concerned person/ authority shall be concluded in
terms of the New Act.
• On constitution of NCLT and NCLAT in terms of the New Act, CLB shall
stand dissolved.
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Removal of difficulty
 The Central Government, vide notification dated 12th September, 2013
notified 98 sections of the New Act, amongst which sections 24, 58 and 59 of
the New Act (pari-materia to sections 55A, 111 & 111A of the Old Act) were
also notified.
 Sections 24, 58 and 59 of the New Act prescribed certain powers to be
exercised by NCLT, however as not all provisions pertaining to NCLT were
notified, a need arose to clarify which body would exercise the powers
conferred upon NCLT for the interim period.
 The Central Government by virtue of section 470 of the New Act, released an
order bearing no. S.O. 2821(E) on 20th September, 2013, through the Ministry
of Corporate Affairs.
 The order has been termed as Companies (Removal of Difficulties) Order,
2013.
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Removal of difficulty
 In terms of the said order, it has been clarified that until a date is notified in
terms of section 434(1) of the New Act, the Board of Company Law
Administration shall exercise the powers of NCLT under section 24, 58 and 59
of the New Act.
 Pursuant to the aforesaid order, CLB has released the following order:
1. Order bearing file no. 10/36/2001-CLB dated 25th September, 2013,
pertaining to amendments in the Company Law Board Regulations, 1991; and
2. Order bearing file no. 10/43/2005-CLB dated 25th September, 2013,
pertaining to discharging of the said powers by certain benches of CLB.
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Sections of the New Act made effective – NCLT & NCLAT
 In relation to NCLT and NCLAT (Section 407 to 414):
• Definitions (Section 407);
• Constitution of NCLT (Section 408);
• Qualification of President and Members of NCLT (Section 409);
• Constitution of NCLAT (Section 410);
• Qualification of Chairperson and Members of NCLAT (Section 411);
• Selection of Members of NCLT and NCLAT (Section 412);
• Terms of office of President, Chairperson and other Members (Section 413)
• Salary, allowances and other terms and conditions of service of Members
(Section 414);
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National Company Law Tribunal – Essential Provisions
Expeditious disposal by Tribunal and Appellate Tribunal (Section 422):
Every application, petition or appeal, as the case may be, presented before NCLT
& NCLAT shall be dealt with and disposed off in a speedy manner & efforts shall
be made to dispose the matter within 3 months from the date of its presentation.
Otherwise NCLT or NCLAT shall record the reasons for not disposing off the
application/petition/appeal with the said period of 3 months. The said period may
be extended by the President of NCLT or the Chairperson of NCLAT by such
period not exceeding 90 days.
Procedure before Tribunal and Appellate Tribunal (Section 424):
NCLT and NCLAT while dealing with any matter before it are not bound by the
procedure laid down by the Code of Civil Procedure, 1908 (“CPC”). However,
subject to the provisions of the New Act and rules made there under, they shall be
guided by the principles of natural justice and shall have the power to regulate
their own procedure. NCLT and NCLAT shall have the same powers vested in a
civil court under CPC, for discharging its functions for specified matters.
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National Company Law Tribunal – Essential Provisions
All proceedings before NCLT or the NCLAT shall be deemed to be judicial
proceedings within the meaning of Sections 193 and 228, and for the purposes
of Section 196 of the Indian Penal Code, and NCLT and NCLAT shall be
deemed to be civil court for the purposes of Section 195 and Chapter XXVI of
the Code of Criminal Procedure, 1973.
Power to punish for contempt (Section 425):
NCLT and NCLAT shall have the same jurisdiction, powers and authority in
respect of contempt of themselves as the High Court has under the provisions
of the Contempt of Courts Act, 1971, but subject to certain modifications as
provided in this Section.
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National Company Law Tribunal – Essential Provisions
Civil court not to have jurisdiction (Section 430):
No Civil court shall have jurisdiction to entertain any suit or proceeding in respect
of any matter which NCLT or NCLAT is empowered to determine either in terms
of the New Act or by any other law in force.
No court or authority shall have the power to grant injunction in respect of any
action taken or to be taken in pursuance of any power conferred by or under the
New Act or any other law for the time being in force, by NCLT or NCLAT.
Right to legal representation (Section 432):
A party to any proceeding or appeal before NCLT or NCLAT may either appear in
person or authorise 1 or more CAs/ CSs/ CWA s/ Advocates or any other person to
present the case.
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National Company Law Tribunal – Essential Provisions
Rule 25(3) of Draft Rules for NCLT (Chapter XVII):
In case, CS/CA/CWA (in practice) are authorized to appear, they should have
post qualification experience of minimum 5 years
Appeal to NCLAT (Section 421):
No Appeal shall lie from an order of NCLT passed by consent of parties.
Appeal shall be filed within 45 days from the date on which copy of order of
NCLT is made available. Another maximum 45 days for condonation of delay
(earlier within 60 days; with another 60 days with condonation of delay. u/s 10F
against order of CLB but only on question of law)
Appeal to Supreme Court (Section 423):
Appeal from order of NCLAT to the Supreme Court within 60 days from the date
of communication of the order of NCLAT on any question of law arising out of
such order. Another 60 days with condonation of delay.
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National Company Law Tribunal – Essential Provisions
Reference to Draft Rules released by MCA on 5th September, 2013 for public comments
(“Draft Rules”):
 Rule 1(5): The rules shall be applicable in proceedings before NCLT in cases of a
Limited Liability Partnership under the Limited Liability Partnership Act, 2008.
 Rule 14: Any notice or process to be issued by NCLT may be served in an electronic
form at the valid e-mail address as provided in a petition/ application/ reply.
 Rule 22: Applicant documents to be marked as “A” series, Respondent documents to
be marked as “R” series and NCLT exhibits to be marked as “T” series.
 Rule 23: If not sufficient grounds are met for proceedings, NCLT to summarily
dispose the petition/ application for reasons to be recorded.
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National Company Law Tribunal – Essential Provisions
 Rule 60: NCLT headquarters to be at New Delhi.
 Part III (Rules 73 - 92): Pertaining to e-filing of applications/ petitions etc.
 Rule 102: All original civil actions or cases arising out of the New Act,
corresponding provisions of the Old Act or the Reserve Bank of India Act,
1934, filed or pending before the CLB, on the date the provisions pertaining to
NCLT are given effect, or CLB is abolished in pursuance of the New Act, then
all such cases shall stand transferred to NCLT.
Further, in case, order is reserved by CLB or its Bench, then NCLT shall
reopen the matter and rehear the case as if the hearing had not taken place.
 Rule 104: Any appeal before AAIFR, or any reference or inquiry made before
BIFR shall stand abated immediately prior to commencement of the New Act.
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Corporate Jurisdiction Hierarchy under
the Companies Act, 2013
Specified proceedings
under the New Act
Company Law
Jurisdiction
Offences to be tried
NCLT
Special Courts
NCLAT
High Courts
Supreme Court
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Special Courts – Essential Provisions
 Establishment of Special Courts (Section 435):
• The Central Government may, for the purpose of providing speedy trial of
offences under this Act, by notification, establish or designate as many
Special Courts as may be necessary.
• A Special Court shall consist of a single judge who shall be appointed by the
Central Government with the concurrence of the Chief Justice of the High
Court within whose jurisdiction the judge to be appointed is working.
• A person shall not be qualified for appointment as a judge of a Special Court
unless he is, immediately before such appointment, holding office of a
Sessions Judge or an Additional Sessions Judge.
 Offences triable by Special Courts (Section 436):
• All offences under the New Act shall be tried by Special Court
• Special Court may try an offence under CrPC at the same trial
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Special Courts – Essential Provisions
 Application of Code to proceedings before a Special Court (Section 438):
• In terms of this section, Special Courts shall follow the provisions of the
Code of Criminal Procedure, 1973.
• A person conducting the prosecution before Special Courts shall be deemed
to be a Public Prosecutor; however, the legislature has further provided the
concept of company prosecutors in Section 443 of the New Act.
 Offences to ne non-cognizable (Section 439):
The New Act provides that offences referred to in Section 212 (6) of the New Act
(i.e. “Investigation into affairs of company by Serious Fraud Investigation Office”)
shall be cognizable and all other offences under the New Act, shall be noncognizable within the meaning of the Code of Criminal Procedure, 1973.
 Transitional Provisions (Section 440):
The said Section provides that until such time the Special Courts are established, the
offences under the New Act, shall be tried by the Court of Sessions having
jurisdiction over the specific area.
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Sections of the New Act made effective – Special Courts
 In relation to Special Courts (Section 439 & 443 to 446):
• Offences to be non-cognizable (Section 439);
• Power of Central Government to appoint company prosecutors (Section
443);
• Appeal against acquittal (Section 444);
• Compensation for accusation without reasonable cause (Section 445);
• Application of fines (Section 446).
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Mediation & Conciliation
 Mediation and Conciliation Panel (Section 442):
• This provision of the New Act provides for constitution of a panel of experts
to be called the “Mediation and Conciliation Panel” for conducting
mediation between parties during the pendency of any proceedings under
the New Act.
•
The parties to a proceeding before the Central Government, NCLT, NCLAT,
shall have the right to apply to the Central Government or NCLT or
NCLAT, as the case may be, for referring such proceedings to a Mediation
and Conciliation Panel.
•
The parties shall apply in such form along with such fee as may be
prescribed. Pursuant to the filing of the form, the Central Government,
NCLT, NCLAT (as the case may be) shall appoint one or more experts to
constitute the Mediation and Conciliation Panel.
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Mediation & Conciliation
 Mediation and Conciliation Panel (Section 442):
• Suo moto powers have also been given to the Central Government, NCLT
and NCLAT, to refer the proceedings pending to the Mediation and
Conciliation Panel at their discretion.
•
Recommendations of the Medication and Conciliation Panel shall be
submitted to the body referring the proceedings.
•
The recommendations of the Mediation and Conciliation Panel shall be
objected to by either of the parties filing objections in respect of the same
with the Central Government/ NCLT/ NCLAT, as the case may be.
 Reference to Draft Rules (Rule 28.15): Mediators/ Conciliators only to aid the
process of arriving at a decision, they cannot impose settlement or any decision
on the Parties.
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National Company Law Tribunal Powers
Pursuant to the New Act coming into force in entirety, NCLT inter-alia shall have
the following power: (For the complete outlay of NCLT powers, refer to Slide No.
39 – 47)
NCLT
Powers in terms
of the LLP Act,
2008
Winding Up
Compromise and
Arrangements
Oppression and
Mismanagement
Complaints relating
to refusal to transfer/
of transmission of
shares
Revival and
Rehabilitation of
Sick Companies
Rectification of
Register(s)
Class Action
Suits
Investigation and
compounding
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Class Action Suit:
Chapter XVI (Sections 245)
 Though order I rule 8 of CPC, 1908 provides for representative action in a
limited manner, insertion of concept of “class action suits” in the New Act is a
welcome change.
 The provision can be invoked if the management or conduct of the affairs of the
company are being conducted in a manner prejudicial to the interests of the
company or its members or depositors or any class of them by filing an
application before NCLT on behalf of the members or depositors.
 Eligibility to file:
Members:
(a) In case of company having share capital,
(i) not less than 100 members; or not less than such percentage of the total
number of members, as may be prescribed, whichever is less; or
(ii) any member or members holding atleast such percentage of the issued share
capital of the company, as may be prescribed;
(b) In case of company not having share capital, atleast 1/5th of total number of
members.
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Class Action Suit:
Chapter XVI (Sections 245)
Depositors:
(a) not less than 100 depositors or not less than such percentage of the total
number of depositors as may be prescribed, whichever is less, or
(b) any depositor(s) to whom the company owes such percentage of total
deposits of the company as may be prescribed.
 The order of NCLT shall be binding on all persons associated with the
company.
 NCLT has been conferred with wide powers vide this section.
 Complainant can claim damages or compensation or suitable action under the
section. In the event the members or depositors claims such damages or
compensation or demand against an audit firm, the liability shall be of the firm
as well as of each partner who was involved.
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Class Action Suit:
Chapter XVI (Sections 245)
 Safeguards have been provided under section 245(4) of the New Act to
prevent frivolous or vexatious class action suits.
 Two class action applications for the same cause of action shall not be allowed
and the cost or expenses connected with the application for class action shall
be defrayed by the company or any other person responsible for any
oppressive act.
 In the event NCLT finds an application to be frivolous or vexatious, the
applicant could be made to pay to the opposite party such costs, not exceeding
INR 1,00,000, as may be specified by NCLT.
 This section is not applicable to a banking company.
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Revival and Rehabilitation of Sick Companies:
Chapter XIX (Sections 253 - 269)
 Sickness has been defined in the New Act, as the inability of the company to pay or
secure or compound the payment on demand by its secured creditors representing
50% of the outstanding debts within 30 days of notice of demand. (section 253(1)).
 No obligation to file reference as under SICA.
 No accumulated loss criterion, hence no determination of Net Worth as under SICA.
 The term “Sick Company” has not been defined in the New Act, the ambit of these
provisions now include every company (and not only Industrial companies).
 No concept of Potentially Sick Industrial Company in the New Act.
 Only on application under section 253(2), NCLT may order to stay any proceedings
as specified under section 253(2) in respect of the company. The stay would be
operative for a period of 120 days.
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Revival and Rehabilitation of Sick Companies:
Chapter XIX (Sections 253 - 269)
 Company may also file an application to NCLT on the grounds mentioned
herein before.
 CG/RBI/SG/PFI/SLI/SB may, if it has sufficient reasons to believe that any
company has become, for the purposes of this Act, a sick company, make a
reference for measures.
 60 days period from receipt of application with NCLT to determine whether
the company is a sick company or not.
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Revival and Rehabilitation of Sick Companies:
Chapter XIX (Sections 253 - 269)
 Pursuant to filing of an application, in terms of section 253 of the New Act, the
company shall not:
• dispose of any assets; or
• otherwise enter into any obligation;
with regard to its properties or assets, except, if done in the normal course of
business. (section253(6))
 Once the company has been determined as a sick company in terms of these
provisions, then the secured creditors may make an application within a period
of 60 days to NCLT for the determination of the measures that may be adopted
with respect to revival and rehabilitation of such company. (section254(3))
 SARFAESI Act shall have an overriding effect on the provisions of Chapter XIX
for abatement of any reference made or to be made under section 253 , if;
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Revival and Rehabilitation of Sick Companies:
Chapter XIX (Sections 253 - 269)
•
•
The secured creditors representing 75% of outstanding debt have taken
measures to recover their debts under the SARFAESI Act, or;
No permission has been procured by the securitisation or reconstruction
company which has taken over the assets of the company in terms of section
5 (1) of the SARFAESI Act. (section254)
 The revival and rehabilitation through a scheme shall now require the approval
of the secured creditors representing three-fourth in value of the amount
outstanding against financial assistance disbursement and unsecured creditors
representing one-fourth in value of the amount owed by company to such
creditors, in a meeting convened by the company administrator. (section262(2))
 Once approved, the Scheme or any provision thereof, shall have a binding effect
from the date it becomes operative on the sick company, the transferee company
or as the case may be, the other company, the employees, shareholders, creditors
and guarantors of the said companies.
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Section wise powers of NCLT referenced under the New Act
S.No Section No.
Head Note
1.
2(23)
Definition of Company liquidator.
2.
2(41)
Application for different Financial Year
3.
7(7)
Incorporation of Company with false or incorrect etc information.
4.
8(9)
Transfer of funds after winding up of company formed with charitable
objects, etc.
5.
14(1)
Alteration of articles for conversion of public into private company.
6.
24(1)
Regulate powers other than provided under section 24(1)
7.
48 (2)
Application by dissenting shareholders against variation of
shareholders’ rights.
8.
55(3)
Non redemption or Non paymen t of dividend on preference shares.
9.
59(1) & (3)
Rectification of register of members.
10.
61(1)
Power of limited company to alter its share capital (in voting %) .
11.
66(1), (3) & (4)
Reduction of share capital.
12.
71(9) & (10)
Non repayment of principal amount of Debentures.
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Section wise powers of NCLT referenced under the New Act
S.No Section No.
Head Note
13.
73(4)
Non repayment of Deposits.
14.
74(2)
Repayment of deposits, etc., accepted before commencement of this
Act.
15.
97
Power of Tribunal to call annual general meeting.
16.
98
Power of Tribunal to call meetings of members, etc.
17.
119
Inspection of minute-book of general meeting.
18.
130
Re-opening of accounts on Court’s or Tribunal’s orders.
19.
131
Voluntary revision of financial statements or Board’s report.
20.
140
Removal, resignation of auditor and giving of special notice.
21.
169
Removal of directors.
22.
210(2)
Investigation into affairs of company.
23.
213
Investigation into company’s affairs in other cases.
24.
216
Investigation of ownership of company.
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Section wise powers of NCLT referenced under the New Act
S.No Section No.
Head Note
25.
218
Protection of employees during investigation.
26.
221(1)
Freezing of assets of a company on an inquiry and investigation.
27.
222(1)
Imposition of restrictions upon securities.
28.
226
Voluntary winding up of company, etc., not to stop investigation
proceedings.
29.
230(1), (9) & (12) Power to compromise or make arrangements with creditors and
members.
30.
231(1) & (2)
Power of Tribunal to enforce compromise or arrangement.
31.
232(1)
Merger and amalgamation of companies.
32.
233(6)
Merger or amalgamation of certain companies.
33.
235(2)
Power to acquire shares of shareholders dissenting from scheme or
contract approved by majority.
34.
237(4)
Power of Central Government to provide for amalgamation of
companies in public interest.
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Section wise powers of NCLT referenced under the New Act
S.No Section No.
Head Note
35.
241(1)
Application to Tribunal for relief in cases of oppression, etc.
36.
242(1) & (4)
Powers of Tribunal for orders under oppression/mismanagement.
37.
243(1)
Consequence of termination or modifications of certain agreements.
38.
244(1)
Right to apply under section 241.
39.
252(1) & (3)
Appeal to Tribunal.
40.
253(1), (3), (8) &
(9)
Determination of sickness.
41.
254
Application for revival and rehabilitation.
42.
256
Appointment of interim administrator.
43.
259(1) & (3)
Appointment of administrator.
44.
260
Powers and duties of company administrator.
45.
262
Sanction of scheme.
46.
264
Implementation of scheme.
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Section wise powers of NCLT referenced under the New Act
S.No
Section No.
Head Note
47.
265 (2)
Winding up of company on report of company administrator.
48.
266
Power of Tribunal to assess damages against delinquent directors, etc.
49.
270
Modes of winding up.
50.
274
Directions for filing statement of affairs.
51.
275
Company liquidators and their appointments.
52.
276
Removal and replacement of liquidator.
53.
277
Intimation to company liquidator, provisional liquidator and Registrar.
54.
279(1)
Stay of suits, etc., on winding up order.
55.
281(1)
Submission of report by company liquidator.
56.
282
Directions of Tribunal on report of company liquidator.
57.
283
Custody of company’s properties.
58.
285
Settlement of list of contributories and application of assets.
59.
287(1)
Advisory committee in Winding up matters
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Section wise powers of NCLT referenced under the New Act
S.No Section No.
Head Note
60.
288 (1)
Submission of periodical reports to Tribunal in winding up matters.
61.
289
Power of Tribunal on application for stay of winding up.
62.
291 (1)
Provision for professional assistance to company liquidator.
63.
292 (4)
Exercise and control of company liquidator’s powers.
64.
294
Audit of company liquidator’s accounts.
65.
295
Payment of debts by contributory and extent of set-off.
66.
296
Power of Tribunal to make calls.
67.
297
Adjustment of rights of contributories.
68.
298
Power to order costs.
69.
299
Power to summon persons suspected of having property of company,
etc.
70.
300
Power to order examination of promoters, directors, etc.
71.
301
Arrest of person trying to quit India or abscond.
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Section wise powers of NCLT referenced under the New Act
S.No Section No.
Head Note
72.
302
Dissolution of company by Tribunal.
73.
317 (1)
Report of company liquidator to Tribunal for examination of persons.
74.
318 (5)
Final meeting and dissolution of company
75.
321 (2)
Arrangement when binding on company and creditors.
76.
322
Power to apply to Tribunal to have questions determined, etc.
77.
328
Fraudulent preference.
78.
331 (3)
Liabilities and rights of certain persons fraudulently preferred.
79.
333
Disclaimer of onerous property.
80.
334
Transfers, etc., after commencement of winding up to be void.
81.
335
Certain attachments, executions, etc., in winding up by Tribunal to be
void.
82.
339
Liability for fraudulent conduct of business.
83.
340
Power of Tribunal to assess damages against delinquent directors, etc.
satwinder@vaishlaw.com
Section wise powers of NCLT referenced under the New Act
S.No
Section No.
Head Note
84.
341
Liability under sections 339 and 340 to extend to partners or directors in
firms or companies.
85.
342
Prosecution of delinquent officers and members of company.
86.
353
Liquidator to make returns, etc.
87.
354
Meetings to ascertain wishes of creditors or contributories.
88.
356
Powers of Tribunal to declare dissolution of company void.
89.
373
Suits stayed on winding up order.
90.
375 (4)
Winding up of unregistered companies.
91.
394 (2)
Annual reports on Government companies.
92.
420
Orders of Tribunal.
93.
425
Power to punish for contempt.
94.
426
Delegation of powers.
satwinder@vaishlaw.com
Section wise powers of NCLT referenced under the New Act
S.No
Section No.
Head Note
95.
441
Compounding of certain offences.
96.
459
Powers of Central Government or Tribunal to accord approval, etc.,
subject to conditions and to prescribe fees on applications.
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Disclaimer:
Please note that this presentation is based on the limited information / documentation available with us and is subject to review of further documentation to be
received in this regard. While every care has been taken to ensure accuracy of this presentation, Vaish Associates Advocates shall not assume any liability / responsibility for any
errors that might creep in. The material herein does not constitute / substitute professional advice that may be required before acting on any matter.
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