National Company Law Tribunal likely to be operational by April 2014

NEW DELHI: The National Company Law Tribunal (NCLT), which would replace the Company Law Board, is likely to be operational by April next year, with the principal bench based in the national capital.

The tribunal is to be set up under the Companies Act, 2013. The legislation is being implemented by the Corporate Affairs Ministry.

The plan is to have to have about 12 to 13 NCLT benches in different parts of the country but a final decision is yet to be taken, according to a source.

"NCLT is expected to be operational by April next year," the source said.

To begin with, the existing benches of Company Law Board would be converted into NCLT ones. Then, in due course, new benches would be created.

Meanwhile, the Ministry has started the consultation process for creation of new posts for the tribunal.

In this regard, it has written to the Finance Ministry as well as the Department of Personnel and Training, the source said.

The tribunal would have a President, judicial and technical members. The President should be a person who is or has been a High Court judge for at least five years.

To become a judicial member at NCLT, an individual is or should have been a High Court judge or district judge for at least five years or with a minimum of ten years experience as an advocate of a court.

Meanwhile, among others, chartered accountants or cost accountants or company secretaries having at least 15 years of experience are eligible to be technical members.

The appeals against NCLT orders would be heard by the proposed National Company Law Appellate Tribunal, which would have a chairperson, judicial and technical members.