Constitution of NCLT taken up in 'expeditious' manner: MCA

NEW DELHI: To further improve ease of doing business in the country, the Corporate Affairs Ministry today said the constitution of National Company Law Tribunal ( NCLT) is being taken up in an 'expeditious' manner.

"The Constitution Bench delivered its final order on the long standing litigation. The constitution of the NCLT is being taken up in an expeditious manner," the ministry said in a statement.

The new Companies Act provides for setting up such tribunal to deal with disputes related to corporates but the plan was stuck due to litigations. However, the constitution bench on May 14 had paved the way for setting up of NCLT.

As per government plans, the tribunal was to be set up under the Companies Act to deal with disputes related to corporates.

Once in place, NCLT would replace the Company Law Board. Appeals against the orders of NCLT would be heard by the National Company Law Appellate Tribunal.

The plan was to have about 12 to 13 NCLT benches in different parts of the country.

Listing out measures taken by the ministry in the past one year, the government said it has made 16 amendments in the Companies Act, 2013, mainly to deal with board resolutions, utilisation of unclaimed dividends and setting-up of a firm among others as well as to bring the law in tune with the global standards.

The amendments, which were passed by Parliament earlier this month, are aimed at facilitating business and addressing concerns raised by stakeholders.

Besides, it has set up a committee to look into further modifications required in the Companies Act, 2013.

Further, the government has notified Indian Accounting Standards (Ind-AS), converged with global standards International Financial Reporting Standards (IFRS).

"These accounting standards are significantly congruent with the global standards, with minimum carve-outs and are expected to boost investor confidence," the statement noted.