Powers Of National Company Law Tribunal (NCLT)
It is pertinent to note that it was Supreme Court of India which paved a way for creation of NCLT & NCLAT . It had decided the Constutional Validity of of Chapters 1B and 1C of the Companies Act, 1956(‘Act’ for short) inserted by Companies (Second Amendment) Act 2002 (‘Amendment Act’ for short) providing for the constitution of National Company Law Tribunal (‘NCLT’ or ‘Tribunal’) and National Company Law Appellate Tribunal (‘NCLAT’ or ‘Appellate Tribunal’) in the matter of Union of India v. R. Gandhi, President, Madras Bar Association ,Civil Appeal No. 3067 of 2004 & decided on May 11, 2010.
NCLT Constituted on 01.06.2016 . It took more than 6 years to finally constitute the NCLT and NCLAT .
NCLT has immense powers which includes
i) power to review of its own order ,
ii) rectification of its order within 2 years,
iii) delegation of powers ,
iv) seeking assistance of Chief judicial Magistrate etc .
The powers of NCLT are detailed as below :
10FM. ORDER OF TRIBUNAL
(1) The Tribunal may, after giving the parties to any proceeding before it, an opportunity of being heard, pass such orders thereon as it thinks fit.
(2) The Tribunal may, at any time within two years from the date of the order, with a-view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (1), and shall make such amendment if the mistake is brought to its notice by the parties.
(3) The Tribunal shall send a copy of every order passed under this section to all the parties concerned.
10FN. POWER TO REVIEW
The Tribunal shall have power to review its own orders.
10FO. DELEGATION OF POWERS
The Tribunal may, by general or special order, delegate, subject to such conditions and limitations, if any, as may be specified in the order, to any Member or officer or other employee of the Tribunal or other person authorised by the Tribunal to manage any industrial company or industrial undertaking or any operating agency, such powers and duties under this Act as it may deem necessary.
10FP. POWER TO SEEK ASSISTANCE OF CHIEF METROPOLITAN MAGISTRATE AND DISTRICT MAGISTRATE
(1) The Tribunal or any operating agency, on being directed by the Tribunal may, in order to take into custody or under its control all property, effects and actionable claims to which a sick industrial company is or appears to be entitled request, in writing, the Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction any property, books of account or any other document of such sick industrial company, be situate or be found, to take possession thereof, and the Chief Metropolitan Magistrate or the District Magistrate, as the case may be, shall, on such request being made to him, –
(a) take possession of such property, books of account or other documents ; and
(b) cause the same to be entrusted to the Tribunal or the operating agency.
(2) For the purpose of securing compliance with the provisions of sub-section (1), the Chief Metropolitan Magistrate or the District Magistrate may take or cause to be taken such steps and use or cause to be used such force as may, in his opinion, be necessary.
(3) No act of the Chief Metropolitan Magistrate or the District Magistrate done in pursuance of this section shall be called in question in any court or before any authority on any ground whatsoever.