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.
