NCLT stands for National Company Law Tribunal, is a quasi-judicial body set up to resolve disputes between civil corporations. It also has the authority to resolve the insolvency matters under the Insolvency and Bankruptcy Code, 2016.
Under Corporate law, also known by the name Company law, resolving the disputes and speedy disposal of corporate cases is one of the significant areas that received the Government’s attention. Resultantly, NCLT has been set up, replacing various other authorities for quick disposal of cases.
NCLT has the power and authority of a civil law court. The proceedings before the NCLT are more or less like proceedings before a court of law.
The parties which have disputes to be resolved can move the NCLT by following the procedure for filing a petition before NCLT court:
- An officer of the company
- Advocate, i.e., a legal practitioner
- Company Secretary
- Cost Accountant
A petition is nothing but a statement of facts or grounds based on which the aggrieved party seeks relief from the court. The procedure for filing a petition before NCLT court involves:
- Filing of all the documents necessary to complete the petition
- Using the stamp papers of requisite amount wherever required
- Payment of necessary court fee as required
- Getting the petition and other documents signed by the authorized signatory as per the rules
Under the NCLT rules 2016, there are mentioned some specific requirements for filing an application before the tribunal, which are:
- The petition is submitted in form NCLT 1 and must contain:
- Notice of admission
- List of Important events and dates
- Grounds of a petition
- Form NCLT 2– Form for notice of admission
- Form NCLT 4 – Title of the proceeding
- Form NCLT 5 – notice to the opposite party
- Form NCLT 6 – It is a form for verification of the petition
- Form NCLT 7 – It is a form for an affidavit
- Form NCLT 10 – If the authorized representative wants to appoint an intern, this form is filled up and filed along with the application.
There are other forms too required to be filed a petition before NCLT court as per the particular facts of each case.
Recommended reading: Role of NCLT in relevance to insolvency and bankruptcy
Some other major points to remember:
- Payment of fees: The fee is payable by demand draft. The petition is filed in person or by an authorized representative. The Registry issues an acknowledgement once the application/petition is filed. If there is any mistake, it is returned for rectification.
- Rule of language: Every petition shall be in the English language. If it is in any other vernacular language, then a copy of the same translated in English will be attached with the petition.
- Typing: The petition is typed on a legal paper with requisite margins and double spacing. The petition is divided into paragraphs.
- Presentation: Three sets of the petition are filed.
- Correction: The party /authorized representative shall initial any deletion/correction in the petition.
The other documents, like Memorandum and Article of Association, Notices of RoC, Bank statements of the company, Audited Financial documents related to the company’s operation, may also be required.
All the documents filed along with the petition are certified by the company’s advocate or authorized representative.
Once the tribunal admits the petition, notices are issued to the opposite party, and the case’s hearing begins.