City to get an NCLAT Bench

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City to get an NCLAT Bench

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The Union government has decided to set up a bench of the National Company Law Appellate Tribunal (NCLAT) in Chennai, Anurag Singh Thakur, Union Minister for State for Finance & Corporate Affairs, said in a written reply to a question in the Lok Sabha on Monday. The decision was taken in pursuance of judgment of the Supreme Court, he said replying to a query from BJP member Diya Kumari and Congress member Rahul Gandhi.

On October 29, The Hindu reported that the State government had written to the Ministry of Corporate Affairs offering two sites near Madras High Court for setting up the NCLAT and assuring all support.

“It is a welcome announcement. The State government had extended all the cooperation and the Centre has responded positively. The NCLAT bench in Chennai would come as a major relief to companies and litigants in the South, who face a lot of administrative and commercial issues in going to Delhi,” P.H. Arvindh Pandian, additional advocate general, Tamil Nadu.

Currently, the NCLAT functions out of the national capital.

The NCLAT was constituted under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of National Company Law Tribunal(s) (NCLT), with effect from June 1, 2016. It is the Appellate Tribunal for hearing appeals against the orders passed by NCLT(s) under Insolvency and Bankruptcy Code, 2016 (IBC), with effect from December 1, 2016.

The NCLAT is also the appellate tribunal that hears appeals against any direction or decision of the Competition Commission of India (CCI), as per the amendment brought to Section 410 of the Companies Act, 2013 by Section 172 of the Finance Act, 2017, with effect from May 26, 2017.

Source- The Hindu.