AMITY LAW SCHOOLAMITY UNIVERSITY UTTAR PRADESH NOIDACompany Law Board Vs National Company Law Tribunal: Acomparative studySubmitted By: Donna Xavier (8072) & Simran Agarwal (8064)Section: AYear: 2ndSubmitted To: Mr. Rituraj SinhaProgram: LLBBatch: 2018-211 | P a g e
.AbstractThe Company Law Tribunal & the National Company Law Tribunal are both quasi judicial bodies, responsible for resolving disputes pertaining to company or corporate disputes. On 1stJune, 2016, the National Company Law Tribunal (NCLT) & National Company Law Appellate Tribunal (NCLAT) replaced the Company Law Board (CLB), serving as a single window for all disputes pertaining to the corporate field.The paper seeks to compare the new system with its predecessor, in order to determine the extent of transformation brought about by the establishment of this novel system & is in conformity with the changing conditions in the corporate arena2 | P a g e
IntroductionThe Company Law Board was constituted under companies act, 1956. And its successor, the National Company Law Appellate Tribunal & the National Company Law Tribunal was constituted on 1stJune, 2016 by the Central Government. NCLT had begun its working in the period of June in Delhi and different seats metro urban communities in the long stretch of July. The 1st class activity suit has been documented in Mumbai and thusly, the working of NCLT has started.In the year 1999, a committee was set up in order to evaluate the winding procedures of the company. Also, to make changes so that the procedures can come in line with the changes in the corporate law. Also, it was set up so that there can be better insolvency proceedings. This committee was under the chairmanship of Justice Balakrishna Eradi. It was therefore known as Eradi Committee.The committee made the following recommendations, one, that the tribunal be vested with the powers held by the CLB under Companies Act, 1956; two, to reconsider the authorities given to Board for Industrial & Financial Reconstruction under SICA in order to reconsider rehabilitation & revival of companies, and three, that changes be made in the powers granted to High Courts in winding up process.3 | P a g e
The Company Law Board: The Old SystemThe Company Law Board (CLB) was an independent quasi-judicial body which consisted powers to overlook the behavioural mechanism of companies within the premises of CompanyLaw. The Board has powers to regulate its own procedures. The Company Law Board has framed “Company Law Board Regulations 1991” prescribing the procedure for filing the applications/petitions before it, and fees for filing any petition or application before this punctilious and swift judicial body.This independent establishment has sovereign powers to regulate the conduct and compliances of all types of companies formed under the Companies act of India, and pass proper orders for companies to follow strictly. The Board has its Principal Bench at New Delhi, and four Regional Benches located at New Delhi, Mumbai, Kolkata and Chennai.