Introduction

In this article you will know about "Difference Between NCLT and NCLAT " but first of all lets know about NCLT and NCLAT. The National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) was established under the Companies Act 2013 and was constituted on 1st June 2016. Company Amendment Act 2002 was passed to provide for their establishment. It is a quasi judicial body to regulate and resolve civil corporate disputes. The power derived from Article 245 of the Constitution of India. NCLT and NCLAT were established under section 408 and section 410 of the Companies Act, 2013. NCLAT is the higher forum where appeals from NCLT are dealt with. Both Tribunal and Appellate Tribunal follow the Code of Civil procedure and are subject to any rules formed by the Central Government. Any person aggrieved by the order NCLT then appeal any order on question of Law and Fact within 45 days to NCLAT and any person aggrieved by the order NCLAT then appeal order on question of Law within 60 days to Supreme Court. 



What is NCLT? 

The NCLT or Tribunal is a quasi- judicial authority created under the Companies Act 2013,to handle corporate civil disputes arising under the act. It is a conceptualized by the Eradi Committee. The NCLT is obliged to objectively determine facts decided case in accordance with principles of natural justice and draw conclusions from them in the form of orders. Such orders can be remedy a situation, correct a wrong or impose legal penalties/costs and may affect the legal rights, duties or privileges of the specific parties. The Tribunal is not bound by the strict judicial rules of evidence and procedure. It can decided case by the following the principles of natural justice. 


What is NCLAT? 

The NCLAT Or Appellate Tribunal is an authority provided for dealing with appeals arising out of the decisions of the Tribunal. It is formed for correcting the errors made by the Tribunal. It is an intermediate or mediator appellate forum where the appeals lie after order of the Tribunal. The order can be challenged to the Supreme Court. Any aggrieved or dissatisfied party by any order of the Tribunal may apply to Appellate Tribunal. The Appellate reviews the decision of the tribunal and power to set aside, modify or confirm it. 




Difference between NCLT and NCLAT 

1. Establishment:-

The NCLT was established under section 408 of the Companies Act ,2013 and was constituted by the Central Government on June 1 , 2016. On the other hand the NCLAT was established under Section 410 of the Companies Act, 2013. It was also established on June 1 , 2016.

2. Benches:-

The NCLT has a principal bench in New Delhi, along with the fourteen other benches in other cities. While the NCLAT has two benches. The principal bench is situated in New Delhi and other bench is in Chennai. 

3. Purpose:-

The NCLT holds primary jurisdiction on cases of insolvency, bankruptcy and corporate disputes. While the NCLAT is for hearing appeals against the orders passes by NCLT, CCI and also hears appeals against National Financial Reporting Authority (NFRA). 

4. Evidence:-

The NCLT accepts and analyses the evidence from Creditors/Debtors for taking decisions. On the other hand the NCLAT accepts and analyses the decision made by NCLT. 

5. Facts:-

The NCLT collects all the facts while the NCLAT analyses the facts. 

Frequently Asked Questions

Question 1. What is the role of NCLT and NCLAT? 

The NCLT and NCLAT both were a quasi- judicial authority created under the Companies Act, 2013. It solve civil corporates disputes and solve the issues relating to Indian Companies. 

Question 2. Who regulates NCLT? 

The Central Government has constituted National Company Law Tribunal (NCLT) under section 408 of the Companies Act 2013 and regulates its working. 

Question 3. Who appoints NCLT judges? 

The Ministry of Corporate Affairs (MCA) has issued a notification relating to the appointment of new members of the NCLT. 

Question 4 .Who is the chairman of NCLAT? 

Ashok Bhusan, retired judge of Supreme Court is the current chairman of National Company Law Tribunal (NCLT). 

Question 5. Who is the chairman of NCLT? 

Shri Ramalingam Sudhakar is the President of the NCLT, New Delhi since 01.11.2021.