Law and order is the basic requirement of every nation and the Government of India has always emphasized on providing justice to the citizens at all levels. Not only courts and other judicial bodies but also some reputed and established non-judicial bodies have been endowed with certain rights to provide law. National Company Law Tribunal (NCLT) is a perfect example of the same. It is a quassi-judicial authority established under Companies Act 2013 under section 408 and deals with the issues of the Indian companies or corporate. This body came into action on June 1st, 2016.
The Ministry of Corporate Affairs have set up eleven benches of NCLT, the main bench is in New Delhi. Other ten benches are in Ahmedabad, New Delhi, Bengaluru, Allahabad, Chennai, Chandigarh, Hyderabad, Guwahati, Mumbai and Kolkata; and thus all the regions in the country do have an NCLT bench.
Insolvency or the state of business failure is a tough situation for any company and when it becomes impossible to bear the situation, the company owner can declare insolvency and bankruptcy. Once bankruptcy is declared, the Government and NCLT take actions to help the company. At first, Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in 2015, later other provisions were added and in August 2016, Insolvency and Bankruptcy Code, 2016 came into effect. Different aspects of the situation are examined before confirming and approving the bankruptcy state. Insolvency resolution, insolvency regulator, insolvency professionals and bankruptcy and insolvency adjudicator are some of the key features of this code.