National Company Law Appellate Tribunal (NCLAT)

Context: National Company Law Appellate Tribunal (NCLAT) refused relief to Gensol Engineering Ltd. against an asset freeze order by NCLT (Ahmedabad).

About National Company Law Appellate Tribunal (NCLAT)

• National Company Law Appellate Tribunal (NCLAT) was constituted in 2016 under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of the National Company Law Tribunal(s) (NCLT)
• It is a quasi-judicial body under the Companies Act, 2013.
• Became operational on 1 June 2016.
• Benches: Principal Bench – New Delhi, Additional Bench – Chennai

Purpose

Appellate tribunal for appeals against orders of:

• National Company Law Tribunal (NCLT) – [Adjudicates company law disputes (original jurisdiction)]
• Insolvency and Bankruptcy Board of India (IBBI).
• Competition Commission of India (CCI).

Composition

• It is composed of a chairperson, judicial and technical members.
• These members are appointed by the Central Government.
• Chairperson: Retired Judge of the Supreme Court or Chief Justice of a High Court.
• Members: Judicial and technical experts.

Hears Appeals against orders passed by

• National Company Law Tribunal (NCLT)
• Insolvency and Bankruptcy Board of India
• Competition Commission of India (CCI)
• National Financial Reporting Authority.

Jurisdiction

• Adjudicates matters related to company law, insolvency, and competition law.
• Final appellate authority under the Insolvency and Bankruptcy Code (IBC), 2016.
• Decisions of NCLAT can be appealed to the Supreme Court of India.

Gensol Engineering Case

• Issue: NCLAT refused relief to Gensol Engineering Ltd. against an asset freeze order by NCLT (Ahmedabad).
• Entities Involved:
  • Matrix Gas and Renewable Ltd.
  • Blu Smart Fleet Private Ltd. (linked to Gensol).
• Key Observation: NCLAT directed the matter back to NCLT for reconsideration.

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