National Company Law Appellate Tribunal (NCLAT)

Introduction 

The NCLAT was constituted by the Central Government under Section 410 of the Companies Act, 2013.  It was established simultaneously with the National Company Law Tribunal (NCLT) as part of a consolidated corporate adjudicatory reform. 

• Its formation was a major reform undertaken under the powers granted to the Ministry of Corporate Affairs.  
• It replaced the fragmented appellate landscape previously spread across the Company Law Board, High Courts, and other forums.

Constitution and Composition 

• The NCLAT comprises a chairperson, three Judicial Members, and two Technical Members, with total strength not exceeding eleven members.  

Qualifications 

Judicial Members: 

• Must be at least 50 years of age. 
• Must have served at least five years as a District Judge or High Court Judge, or possess a minimum of ten years of experience in a judicial authority.  

Technical Members: 

• Must be at least 50 years of age. 
• Must have practised as a Chartered Accountant, Cost Accountant, or Company Secretary for fifteen years, or must hold the rank of Secretary or Additional Secretary to the Central Government and be a member of the Indian Corporate Law Service or Indian Legal Service for more than fifteen years. 

Jurisdiction and Appellate Powers 

The NCLAT hears appeals from the following authorities: 

• Orders of the National Company Law Tribunal (NCLT), with effect from 1 June 2016.  
• Orders of the Insolvency and Bankruptcy Board of India (IBBI) under Sections 202 and 211 of the Insolvency and Bankruptcy Code, 2016.  
• Directions, decisions, or orders passed by the Competition Commission of India (CCI).  
• Orders passed by the National Financial Reporting Authority (NFRA).

Benches and Further Appeal 

• The principal bench of the NCLAT is situated in Delhi, with an additional bench in Chennai.  
• The dual-bench structure ensures regional accessibility for litigants across the country. 
• Orders of the NCLAT are appealable before the Supreme Court of India, making it the penultimate forum in the corporate appellate hierarchy.

Conclusion 

The NCLAT consolidates appellate review of orders from the NCLT, CCI, IBBI, and NFRA under a single specialised tribunal. Its membership qualifications — drawn from both judicial and technical domains — ensure expert and credible adjudication.As India's commercial economy expands, the NCLAT's role as a sentinel of corporate accountability becomes increasingly indispensable.