The National Company Law Appellate Tribunal (NCLAT) is a special court in India that reviews decisions made by the National Company Law Tribunal (NCLT) and other regulatory bodies. It plays a big role in handling appeals related to company laws, insolvency, and competition issues, making sure disputes are solved quickly and fairly to support a strong business environment. NCLAT is like a referee for corporate disputes. It ensures that decisions made by lower tribunals are fair and follow the law. Understanding NCLAT is key because it deals with complex issues like company mergers, insolvency cases and competition law violations. By taking on these appeals, NCLAT reduces the workload of higher courts, acting as a specialized body with a lot of influence over how businesses are governed and restructured.
Unlock new career opportunities with The Legal School’s Certification in Bankruptcy & Insolvency Law: Corporate Restructuring & Debt Resolution, in collaboration with IndusLaw. This six-month program, led by industry experts, equips you with critical skills in insolvency litigation, financial distress management, and corporate rescue strategies. Earn a prestigious certificate and elevate your expertise in a rapidly evolving field!
What is NCLAT?
NCLAT stands for the National Company Law Appellate Tribunal, which is a special court-like body in India set up under Section 410 of the Companies Act, 2013. It's basically an appeal court that reviews and decides on challenges to rulings made by the National Company Law Tribunal (NCLT) and other regulators, like those related to company disputes, bankruptcy cases under the Insolvency and Bankruptcy Code (IBC), and competition issues from the Competition Commission of India (CCI).
In simple terms, if someone disagrees with a decision from NCLT such as on mergers, company shutdowns, or debt resolutions they can go to NCLAT for a second look to ensure fairness and quick fixes, helping keep businesses running smoothly without overloading regular courts.
Historical Background of NCLAT
NCLAT was created under Section 410 of the Companies Act, 2013, by the Central Government and started working on June 1, 2016, after notifications from the Ministry of Corporate Affairs. It was part of a larger effort to improve how corporate disputes are handled, replacing older bodies like the Company Law Board and the Board for Industrial and Financial Reconstruction (BIFR).
The idea for such tribunals began with the Companies (Second Amendment) Act, 2002, aiming for faster dispute resolution. However, it took until the 2013 Act for NCLT and NCLAT to fully take shape. The Supreme Court confirmed their legality in Union of India v. Madras Bar Association (2015), ensuring judges hold key roles in these tribunals.
Based in New Delhi at first, NCLAT added a bench in Chennai in 2018 to serve southern India, making it easier for people to access. As of 2025, it has multiple benches to handle the rising number of cases, matching India’s growing economy and business disputes.
Read about the Role of NCLT in Insolvency Cases under Section 60 of IBC, 2016.
Composition of NCLAT
NCLAT is designed to include experts in law, finance, and management. It is led by a Chairperson, who must be a retired Supreme Court Judge or a retired Chief Justice of a High Court. The tribunal includes Judicial Members (retired High Court Judges or senior lawyers) and Technical Members (experts in fields like accounting, economics or industrial finance). The total number is limited to a Chairperson and up to 11 members, though the actual number depends on appointments.
The Central Government appoints members based on a Selection Committee’s advice, ensuring fairness. Members serve for five years or until age 67 (Judicial) or 65 (Technical), and they can be reappointed. This blend of legal and technical skills helps NCLAT tackle complex business issues effectively.
The Chairperson forms benches, usually with at least one Judicial and one Technical Member. The main bench in New Delhi handles most appeals, while the Chennai bench covers specific regions. In May 2025, new members took their oaths, showing efforts to keep the tribunal strong.
Learn about the meaning of Bankruptcy.
Jurisdiction and Powers of NCLAT
NCLAT reviews decisions from , the Insolvency and Bankruptcy Board of India (IBBI), and the Competition Commission of India (CCI). Under Section 421 of the Companies Act, 2013, it handles appeals on issues like mergers, shareholder disputes, and company closures.
For insolvency cases, under the Insolvency and Bankruptcy Code (IBC), 2016, NCLAT looks at NCLT orders on corporate insolvency processes, liquidations, and personal guarantors. It also deals with CCI appeals under the Competition Act, 2002, covering unfair business practices and mergers.
NCLAT can uphold, change, or cancel decisions it reviews. It has powers to call witnesses, ask for documents, and set costs. While it follows civil court processes, it’s not tied to strict rules, allowing faster case handling. Appeals must be filed within 45 days, with an extra 45 days possible for valid reasons.
NCLAT’s decisions can be challenged in the Supreme Court on legal grounds, ensuring oversight. Its authority is exclusive, meaning regular courts cannot handle these cases.
Learn more about Corporate Insolvency Resolution
Functions and Procedures of NCLAT
NCLAT’s main job is to review NCLT decisions to ensure they are fair and legal. It examines evidence, listens to arguments, and gives clear judgments. Its processes are guided by the National Company Law Appellate Tribunal Rules, 2016.
Appeals start by filing a form with fees and copies of the decision being challenged. Virtual hearings through video calls are common, especially after COVID, with guidelines on NCLAT’s website. Parties can represent themselves or use lawyers or company secretaries.
Hearings involve short arguments, and benches prefer clear presentations. Judgments are shared in open court and posted online for openness. NCLAT can also issue special orders for fairness, as allowed under Rule 11 of its rules.
In competition law, NCLAT reviews CCI penalties, balancing business freedom with regulation. For insolvency, it oversees resolution plans, creditor groups and payment pauses, aiming to maximize asset value.
Role of NCLAT in Insolvency and Company Law
In company law, NCLAT settles disputes over shareholder rights, director issues and business restructurings. It can fix records, investigate companies and enforce rules.
Under the IBC, NCLAT is crucial for insolvency since it ensures fair treatment of creditors and debtors during resolution processes. It approves or rejects plans based on the Committee of Creditors’ (CoC) decisions and has shaped insolvency law by enforcing strict timelines resolutions must finish within 330 days and protecting smaller creditors.
NCLAT also interacts with laws like the Prevention of Money Laundering Act (PMLA). Recent decisions clarify that NCLT/NCLAT cannot override other specialized bodies unless there’s a direct conflict with IBC.
Summary
NCLAT is a vital tribunal in India, ensuring fairness in corporate and insolvency matters. Its clear authority, expert members and efficient processes make it essential for lawyers handling complex disputes. By delivering fair outcomes and adapting to India’s growing economy, the National Company Law Appellate Tribunal supports a strong business environment. As corporate India expands, NCLAT’s role will grow, requiring lawyers to stay proactive.
Related Posts:
NCLAT: FAQs
Q1. What is NCLAT and its function?
NCLAT is a tribunal that reviews decisions from NCLT, IBBI and CCI, ensuring fair and quick resolution of corporate and insolvency disputes.
Q2. What is the difference between NCLT and NCLAT?
NCLT is a first-level tribunal that handles company and insolvency cases, while NCLAT reviews those decisions as an appellate body.
Q3. Who is the current president of NCLAT?
The current Chairperson of NCLAT is Justice Ashok Bhushan, appointed on November 8, 2021.
Q4. How many NCLAT benches are there in India?
NCLAT has two benches: one in New Delhi (Principal Bench) and one in Chennai.
