Current Events Current Affairs Analysis
The National Company Law Appellate Tribunal (NCLAT) dismissed an insolvency petition filed by SNJ Synthetics against PepsiCo India Holdings, asserting that the Insolvency and Bankruptcy Code (IBC) cannot be used as a tool for debt recovery where only disputed interest claims are involved.
TheNCLATis aquasi-judicial bodyconstituted underSection 410 of the Companies Act, 2013. It was established tohear appealsagainst the decisions of theNational Company Law Tribunal (NCLT), functioning since1st June 2016.
Its main objective is topromote timely corporate dispute resolution, ensuretransparency, and improveefficiency in insolvency and corporate governance matters.
Functions of NCLAT include:
oHearing appeals against orders ofNCLTunderSection 61 of IBC.
oHearing appeals against orders of theInsolvency and Bankruptcy Board of India (IBBI)underSections 202 and 211 of IBC.
oHearing appeals against orders of theCompetition Commission of India (CCI).
oHearing appeals related to theNational Financial Reporting Authority (NFRA).
oGivingadvisory opinionswhen legal issues are referred by thePresident of India.
Headquarters: Located inNew Delhi.
Composition: It includes aChairperson, along withJudicial and Technical Members, all appointed by theCentral Governmentbased on expertise inlaw, finance, accountancy, and administration.
Powers and Procedure:
oNCLAT canregulate its own procedureand possesses powers equivalent to acivil courtunder theCivil Procedure Code, 1908.
oIt can summon witnesses, receive affidavits, enforce production of documents, and issue commissions.
oOrders passed by NCLAT areenforceable like civil court decrees.
oAppeals against NCLAT orders can be filed in theSupreme Court of India.
oCivil courts haveno jurisdictionover matters within the purview of NCLAT.
oNo court or authority cangrant injunctionsagainst any action taken by NCLAT under its legal authority.
Timely disposal: NCLAT is required todispose of appeals within six monthsfrom the date of receipt to ensure swift resolution.
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