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Scope of National Company Law Tribunal

The National Company Law Tribunal (NCLT) consolidates the corporate jurisdiction of the Company Law Board, Board for Industrial and Financial Reconstruction (BIFR), The Appellate Authority for Industrial and Financial Reconstruction (AAIFR) and the powers relating to  winding up or restructuring and other provisions, vested in High Courts.

Hence, the National Company Law Tribunal will consolidate all powers to govern the companies registered in India. With the establishment of the NCLT and NCLAT, the Company Law Board under the Companies Act, 1956 has now been dissolved.

Advantages for National Company Law Tribunal

  • NCLT is a specialized court only for Corporates, i.e., companies registered in India.

  • This will be no more than a Tribunal for the Corporate Members.

  • It will reduce the multiplicity of litigation before different forums and courts.

  • NCLT has multiple branches and is able to provide justice at a close range.

  • It consists of both judicial and technical members while deciding on matters.

  • The time taken to windup a company is reduced.

  • Speedy disposal of cases will help reduce the number of cases.

  • NCLT has exclusive jurisdiction.

Jurisdiction of National Company Law Tribunal

The following are the National Company Law Tribunal benches and its respective jurisdictions:

NCLT, Principal Bench and NCLT, New Delhi Bench Jurisdiction: Union Territory of Delhi, State of Rajasthan, State of Haryana

NCLT, Ahmedabad Bench Jurisdiction: State of Gujarat, State of Madhya Pradesh, Union Territory of Dadra and Nagar Haveli, Union Territory of Daman and Diu

NCLT, Allahabad Bench Jurisdiction: State of Uttar Pradesh, State of Uttrakhand

NCLT, Bengaluru Bench Jurisdiction: State of Karnataka

NCLT, Chandigarh Bench Jurisdiction: State of Himachal Pradesh, State of Jammu and Kashmir, State of Punjab, Union Territory of Chandigarh

NCLT, Chennai Bench Jurisdiction: State of Kerala, State of Tamil Nadu, Union Territory of Lakshadweep, Union Territory of Puducherry

NCLT Guwahati Bench Jurisdiction: State of Arunachal Pradesh, State of Assam, State of Manipur, State of Mizoram, State of Meghalaya, State of Nagaland, State of Sikkim, State of Tripura

NCLT Hyderabad Bench Jurisdiction: State of Andhra Pradesh, State of Telangana

NCLT Kolkata Bench Jurisdiction: State of Bihar, State of Jharkhand, State of Odisha, State of West Bengal, Union Territory of Andaman and Nicobar Island

NCLT Mumbai Bench Jurisdiction: State of Chhattisgarh, State of Maharashtra, State of Goa

Powers of National Company Law Tribunal (NCLT)

The Tribunal and the Appellate Tribunal is bound by the rules laid down in the Code of Civil Procedure and is guided by the principles of natural justice, subject to the other provisions of this Act and of any rules that are made by the Central Government. The Tribunal and the Appellate Tribunal has the power to control its own procedure. Further, no civil court has the jurisdiction to consider any suit or proceeding with reference to any matter which the Tribunal or the Appellate Tribunal is empowered to decide.

National Company Law Tribunal enjoys a wide range of powers. Its powers include:

  • Power to seek assistance of Chief Metropolitan Magistrate.

  • De-registration of Companies.

  • Declare the liability of members unlimited.

  • De-registration of companies in certain circumstances when there is registration of companies is obtained in an illegal or wrongful manner.

  • Remedy of oppression and mismanagement.

  • Power to hear grievance of refusal of companies to transfer securities and rectification of register of members.

  • Protection of the interest of various stakeholders, especially non-promoter shareholders and depositors.

  • Power to provide relief to the investors against a large set of wrongful actions committed by the  company management or other consultants and advisors who are associated with the company.

  • Aggrieved depositors have the remedy of class actions for seeking redressal for the acts/omissions of the company which hurt their rights as depositors.

  • Powers to direct the company to reopen its accounts or allow the company to revise its financial statement but do not permit reopening of accounts. The company can itself also approach the Tribunal through its director for revision of its financial statement.

  • Power to investigate or for initiating investigation proceedings. An investigation can be conducted even abroad. Provisions are provided to assist investigation agencies and courts of other countries with respect to investigation proceedings.

  • Power to investigate into the ownership of the company.

  • Power to freeze assets of the company.

  • Power to impose restriction on any securities of the company.

  • Conversion of  public limited company into  private limited company.

  • If the company cannot or has not held an Annual General Meeting as required under the Companies Act or a required Extraordinary General Meeting, then the Tribunal has powers to call for a General Meetings.

  • Power to alter the financial year of a company registered in India.


Dr. Sunil Khattri

MBBS, MS (General Surgery), LLB

Practicing Advocate at Supreme Court and National Consumer Disputes Redressal Commission New Delhi

+91 98116 18704

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