Government keeps NCLT formation in 'abeyance' due to legal challenge

NEW DELHI: The government today said that the formation of the National Company Law Tribunal (NCLT) has been kept in "abeyance" on account of a legal challenge in the Supreme Court.

"The process of formation of the NCLT has been kept in abeyance on account of a legal challenge in the Supreme Court to certain provisions of the Companies Act, 2013, relating to the constitution and composition of this body," Corporate Affairs Minister Arun Jaitley said in a written reply to the Lok Sabha.

He further said that the issue of "establishment of benches of NCLT in various states is dependent on the resolution of the litigation in the Supreme Court."

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.