What is the full form of NCLT in Banking?

The National Company Law Tribunal is a court in India for Indian companies. It began on June 1, 2016, as suggested by the Companies Act 2013 and the V. Balakrishna Eradi committee.

The National Company Law Tribunal (NCLT) deals with everything related to the Companies Act, like arbitration and closing down companies. A retired or current High Court Judge and a member of the Indian Corporate Law Service lead it. NCLT also helps companies and limited liability partnerships with money troubles under the Insolvency and Bankruptcy Code of 2016.

What you should know about NCLT?

Regular courts can’t handle cases with which the Tribunal or Appellate Tribunal deals. So if a matter belongs to them, only they can handle it. The Tribunal has sixteen benches in different cities across India, like New Delhi, Ahmedabad, and Mumbai.

NCLT deals with cases from the Company Law Board and BIFR. It sorts out problems like oppression, mismanagement, fraud, share transfer disputes, and closing down companies.

Sections 447 and 448 of the Companies Act 2013 stop companies from easily changing their financial statements. While they can review statements under Section 131, they can’t reopen accounts. However, Section 130 lets NCLT tell companies to reopen accounts in certain situations.