• Written By Sankavi_E
  • Last Modified 29-04-2022

NCLAT Full Form

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NCLAT Full Form: The full form of NCLAT in English is National Company Law Appellate Tribunal, while in Hindi it is known as नेशनल कंपनी लॉ अपीलेट ट्रिब्‍यूनल. This tribunal was formed for hearing appeals from the orders of the National Company Law Tribunal (NCLT). 

The formation of the NCLAT was a major corporate reform. It granted powers to the Ministry of Corporate Affairs (MCA) in India. The NCLAT also hears the appeals from orders issued by Insolvency and Bankruptcy Board of India (IBBI) under Section 202 and Section 211 of the Insolvency and Bankruptcy Code (IBC), 2016.

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History of NCLAT

The NCLAT is a tribunal formed by the government of India under Section 410 of the Companies Act, 2013. It is responsible for hearing appeals from any direction issued, decision made, or order passed by the Competition Commission of India (CCI) and the National Financial Reporting Authority (NFRA). Both NCLT and NCLAT were established on 1 June 2016.

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Objective of NCLAT

NCLAT was also formed as an appellate authority for granting relief to the aggrieved persons against the orders of the NCLT,  passed under Section 61 of the IBC, 2016. These decisions are appealable to the Supreme Court (SC) of India. 

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Structure of NCLAT

The NCLAT includes a Chairperson, three judicial members, and two technical members. It can have a maximum strength of not more than eleven members. Ashok Bhushan, a retired judge of the SC of India, is the current chairman of NCLAT. 

The qualifications for a judicial member at the NCLAT are that the member needs to be at least 50 years old and should have served for five years as District Judge or High Court (HC) Judge. Or should have a minimum of 10 years of experience in serving any judicial authority.

The qualifications for a technical member at NCLAT are that the member needs to be at least 50 years old and should have practiced as a Chartered Accountant (CA), Cost Accountant (CA), or Company Secretary (CS) for more than 15 years. If the member is a bureaucrat, the person should at least hold the rank of Secretary or Additional Secretary in the central government. The person may also be a member of the Indian Corporate Law Service (ICLS) or Indian Legal Service (ILS) for more than 15 years.

Powers and Functioning of NCLAT 

The powers and functions of NCLAT include the orders issued by NCLT, CCI and IBBI. NCLAT has a functioning principal bench in New Delhi and one additional bench in Chennai.

Practice Exam Questions

FAQS 

Que 1: Why is NCLAT formed?

Ans: The NCLAT was formed for hearing appeals from the orders of the NCLT, CCI and IBBI.

Que 2: When was NCLAT formed?

Ans: The NCLAT was formed on 1 June, 2016.

Que 3: What is the structure of NCLAT?

Ans: The NCLAT includes a Chairperson, three judicial members, and two technical members. Its total strength cannot be more than eleven members. 

Que 4: What is the qualification of a judicial member at the NCLAT?

Ans: The qualifications for a judicial member at the NCLAT are that the member needs to be at least 50 years old and should have served for five years as District Judge or High Court Judge, or should have a minimum of 10 years of experience in serving any judicial authority.

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