Can anyone please explain to me the difference between CLB, NCLT and NCLAT..???
CLB, NCLT, NCLAT
shweta agrawal (B.Com CA PCC CS Inter) (81 Points)
23 May 2010
shweta agrawal (B.Com CA PCC CS Inter) (81 Points)
23 May 2010
Can anyone please explain to me the difference between CLB, NCLT and NCLAT..???
SUCHINDRA PARE
(Lawyer)
(80 Points)
Replied 24 May 2010
see the CLB stands for company law board... It has been dissolved as of now..the present body which deals with the company matters is the NCLT, that is the National Company Law Tribunal. The NCLAT is the Appeallate Body and the persons aggrieved by the order of NCLT can refer the case to NCLAT[National Company Law Appellate Tribunal].... I hope it is clear to you now....
Nitin Grover
(CS)
(1228 Points)
Replied 24 May 2010
Dear Shweta
NCLT is a higher version of CLB with powes of High Cour and BIFR/AAIFR
NCLAT is appellate Tribunal of NCLT
for eg now
Case Realted with Company Law will be handled by NCLT only insted of CLB, High Court etc
now PCS/PCA can also go their.
Regards
Kumar
(Article)
(922 Points)
Replied 24 May 2010
Dear Shweta
COMPANY LAW BOARD:
Prior to the commencement of Companies (Second Amendments) Act, 2002 Company Law Board was the Administrative Body under the Companies Act.
It was constituted by the Central Government U/s. 10E.
But with the commencement of Companies (Second Amendments) Act, 2002 Company Law Board was dissolved U/s. 10FA and a new body named as National Company Law Tribunal was constituted U/s. 10FB, to step into the shoes of Company Law Board and perform all such functions which were entrusted with the Company Law Board.
But as we are used to calling the administrative body under the Companies Act as Company Law Board, we continue to do the same even after its dissolution and formation of the tribunal.
NATIONAL COMPANY LAW TRIBUNAL:
As explained above National Company Law Tribunal constituted U/s 10FB is an administrative body under the Companies Act, (after the commencement of the Companies (Second Amendments) Act, 2002 and the dissolution of the Company Law Board U/s. 10FA.
It performs all such function which were prior to the dissolution of the Company Law Board were performed by the Company Law Board.
APPELLATE TRIBUNAL:
It is an appellate body under the Companies Act, constituted U/s 10FQ.
Any person aggrieved by the order of the National Company Law Tribunal may appeal to Appellate Tribunal.
Prior to the commencement of the Companies (Second Amendments) Act, 2002, any person aggrieved by an order of the Company Law board would appeal with the High Court, but after the Companies (Second Amendments) Act, 2002, first appeal lies with the Appellate Tribunal.
Hope it satisfies ur query….
Take Care…!!! 
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 25 May 2010
Salient Features of the Company Law Tribunal
(a) The National Company Law Tribunal (NCLT) working in benches all over the country and having its Principal Bench at New Delhi.
(b) It shall abolish the existence of Company Law Board and replace its wider powers and jurisdiction by NCLT.
(c) In majority of the sections of the principal Act, for the words 'Company Law Board/Court', wherever they occur, the word 'Tribunal' has been substituted.
(d) Appeal against the orders of the Tribunal shall be heard by the Appellate Tribunal (NCLAT) at New Delhi.
(e) The orders of the NCLT and the NCLAT are binding on parties to the issue and appeal against them in Court of Law is not maintainable.
(f) The Supreme Court can be reckoned to hear an appeal against an order only on a moot question of law.
(g) The employees of the NCLT and the NCLAT are to be treated as public servants. Therefore, no suit against order of the NCLAT or its staff for any action in good faith is maintainable.
(h) The NCLT and the NCLAT are not to be bound by Code of Civil Procedure, 1908 but guided by principles of natural justice.
(i) Applicant, can appear before the Tribunal or the Appellate Tribunal in person or can authorise a chartered accountant, company secretary, cost and works accountant or a lawyer to appear before NCLT, NCLAT.
(j) Any appeal against the order of Company Law Board before the commencement of Companies (Second Amendment) Act, 2002 to be made to the High Court of competent jurisdiction.
(k) All matters pending before the CLB on or before constitution of the NCLT shall be transferred to the NCLT.
(l) The cases which remain pending before District Court or High Court, for any compromise, arrangement or winding up of company (not being winding up under supervision of Court) under the Companies Act, 1956, or any other law for the time being in force other than Banking Regulation Act, 1949, if already started, shall be transferred to the NCLT, from such date as notified by Central Government. Provided that where winding up of companies subject to supervision of Court has commenced before the Court it shall continue in the same manner as was before the commencement of the Companies (Second Amendment) Act, 2002.
(m) The Tribunal may either de novo proceed with such cases transferred, or may continue it from the stage it was so transferred.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 25 May 2010
Benefits of the National Company Law Tribunal
The efforts of the Government to review the multiplicity of judicial bodies and consolidate them into one shall have far reaching impact on all facets of corporate life, not only the companies but also the investors as well as the professional community shall gain by such consolidation. Some of the benefits are noted as under:
(a) Since the plurality of agencies is avoided, not much of reporting is required from various other agencies. It shall serve as single window settlement of cases related to the corporate affairs. Hence, the time required for any restructuring will be reduced as multiplicity of work will be reduced.
(b) Individual affidavits are required to be filed to the Tribunal by the directors while filing a petition under the Companies Act and other laws. The Tribunal is also entrusted with powers of contempt of court. This provides a built-in seriousness in the entire procedure of appearing before the NCLT.
(c) Reduction in time for completion of proceedings leads to increase in savings of cost.
(d) The NCLT and the NCLAT shall be formulated as judicial body and hence, decisions of the NCLT are binding on all parties concerned.
(e) The powers of Court are delegated to the NCLT and no appeals are preferred in court of law. This saves time of High Court as well.
(f) Appearance of CAs, CSs, ICWAs and Lawyers before the Tribunal and Appellate Tribunal provides better professional opportunity. Also the time and cost to the clients declines. Also, first hand information can be really made available to the NCLT.
(g) A Rehabilitation and Revival Fund proposed to be set up to make:—
(i) interim payment of dues of workmen of company declared sick;
(ii) protection of assets of sick company;
(iii) revival and rehabilitation of sick companies.
(h) Multiplicity of judicial bodies and litigation avoided.
(i) The NCLT and the Appellate Tribunal not to be bound by the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice. The NCLT and the NCALT have the power to regulate their own proceedings within the framework of the Act.
shweta agrawal
(B.Com CA PCC CS Inter)
(81 Points)
Replied 26 May 2010
THANK YOU SO MUCH FOR THE EXPLANATION
SUCHINDRA PARE
(Lawyer)
(80 Points)
Replied 26 May 2010
thankyou so much ankur sir for providing the detailed provisions of the NCLT....But i have one more querry that where exactly is the NCLT and NCLAT located....are they in delhi?? and How many NCLTs function in India?? is it that NCLT function state wise or Just one for all the states(India)?? As far as NCLAT is concencerd I hope it has just one principal seat....
sir please tell me.....and thanks again!!!!
Nitin Grover
(CS)
(1228 Points)
Replied 26 May 2010
Dear Suchindra
in my views every NCLT for Region i.e 1 for north region, 1 for eastern etc
Regards
Rasesh
(CS CWA MBA (Fin) B.Com LL.B (Spl))
(6501 Points)
Replied 26 May 2010
One thing all forum participants have ignored is that NCLT is yet to take shape. Though the law was passed many years back, due to a case filed against the constitutional validity of NCLT, the matter got stuck up. About 10 days back, the Supreme court has upheld the constitutional validity of NCLT but has suggested some changes to be made in the existing provisions of the Act.
The present position is that CLB is functioning and has various powers. The Companies Bill, 2009 is placed before the Parliament and may be approved anytime. which means that we will have to unlearn and learn many things.
Nitin Grover
(CS)
(1228 Points)
Replied 27 May 2010
Rasesh
(CS CWA MBA (Fin) B.Com LL.B (Spl))
(6501 Points)
Replied 27 May 2010
Let's hope for the best.
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 07 February 2012
Ankur sir does it mean that ca/cs can handle matter itself without hiring an advocate as they will be eligible to appear before NCLT
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