New Adjudicating Authority For Corporate Insolvency Proceedings

The National Company Law Tribunal (NCLT) was recently announced as the adjudicating authority for insolvency proceedings relating to companies, limited liability partnerships and other body corporates under the Insolvency and Bankruptcy Code 2016,⁽¹⁾ with effect from June 1 2016.⁽²⁾ The National Company Law Appellate Tribunal (NCLAT), which will hear appeals from NCLT decisions, has also been established.⁽³⁾ The NCLT will have 11 benches across India.⁽⁴⁾

In this regard, the provisions of the Companies Act 2013 dealing with the composition of the NCLT and NCLAT⁽⁵⁾ and the provisions dealing with the transfer of proceedings that are pending before the Company Law Board to the NCLT⁽⁶⁾ have come into force.⁽⁷⁾