UPSC Articles
National Company Law Tribunal (NCLT)
Part of: Prelims and GS-III -Economy
Context: The Supreme Court has upheld a National Company Law Tribunal (NCLT) decision to wind up Devas (Digitally Enhanced Video and Audio Services), once regarded as a move to revolutionise digital media and broadcasting services via satellite. However, it ended up as a case of fraud and corruption under CBI investigation.
What is NCLT?
- Insolvency and Bankruptcy Code was enacted in 2016 for reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons.
- The adjudicating authority is National Company Law Tribunal (NCLT) for companies and LLPs and Debt Recovery Tribunal (DRT) for individuals and partnership firms.
- It is a quasi-judicial body in India that adjudicates issues relating to companies in India.
- Established on 1st June, 2016 (Companies Act, 2013).
- Formed based on the recommendations of the Justice Eradi Committee.
- It deals with matters mainly related to companies law and the insolvency law.
- Term of members: Appointments will be for five years from the date of assumption of charge or till attaining the age of 65 or until further orders.
News Source: TH
