NCLT (National Company Law Tribunal) is a quasi-judicial body constituted by the Central Government to adjudicate matters relating to companies under the Companies Act, 2013 and to serve as the Adjudicating Authority for insolvency proceedings under the Insolvency and Bankruptcy Code, 2016. Under Indian law, it is established under Section 408 of the Companies Act, 2013.
Legal definition
Section 408(1) of the Companies Act, 2013 provides:
The Central Government shall, by notification, constitute, with effect from such date as may be specified therein, a Tribunal to be known as the National Company Law Tribunal consisting of a President and such number of Judicial and Technical Members, as the Central Government may deem necessary, to be appointed by it by notification, to exercise and discharge such powers and functions as are, or may be, conferred on it by or under this Act or any other law for the time being in force.
The NCLT was constituted with effect from 1 June 2016 and replaced the erstwhile Company Law Board (CLB) and the Board for Industrial and Financial Reconstruction (BIFR). It currently operates through multiple benches across India, with the Principal Bench located in New Delhi.
How courts have interpreted this term
Madras Bar Association v. Union of India (2015) 8 SCC 583
The Supreme Court upheld the constitutional validity of Section 408 and the constitution of the NCLT, while striking down certain provisions relating to the qualification and appointment of technical members. The Court held that the NCLT, being a tribunal that exercises jurisdiction previously vested in High Courts, must meet the requirements of judicial independence. The decision led to reforms in the appointment process and qualification criteria for NCLT members.
Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17
The Supreme Court upheld the constitutional validity of the IBC and the NCLT's role as the Adjudicating Authority under the Code. The Court observed that the NCLT provides a specialised forum for corporate dispute resolution, combining expertise in both company law and insolvency matters, and that this specialisation serves the legislative objective of time-bound resolution of insolvency.
Why this matters
The NCLT is the single most important adjudicatory body in Indian corporate law. Its jurisdiction spans virtually the entire breadth of company law and insolvency matters. Under the Companies Act, 2013, the NCLT hears matters including oppression and mismanagement (Sections 241-246), compromises and arrangements including mergers (Sections 230-232), class actions (Section 245), conversion of companies (Section 18), and compulsory winding up (Section 271). Under the IBC, 2016, the NCLT serves as the Adjudicating Authority for the Corporate Insolvency Resolution Process, liquidation proceedings, and voluntary liquidation.
For practitioners, the NCLT has replaced multiple forums that previously handled company law matters — the Company Law Board, the High Courts (for winding up and schemes of arrangement), and the BIFR (for sick industrial companies). This consolidation has created a specialised forum with both judicial and technical expertise. However, the NCLT is bound by the principles of natural justice and its orders are appealable to the NCLAT and, thereafter, to the Supreme Court.
A critical point is the NCLT's dual jurisdiction. When adjudicating under the Companies Act, the NCLT functions as a company court addressing shareholder disputes, governance matters, and corporate restructuring. When acting under the IBC, it functions as the Adjudicating Authority with the power to admit or reject insolvency applications, impose moratoriums, approve resolution plans, and order liquidation. The procedural rules differ across these two jurisdictions, and practitioners must be mindful of the applicable rules and timelines.
Related terms
Appellate authority:
Key IBC functions:
Key Companies Act functions:
Frequently asked questions
How many benches does the NCLT have?
The NCLT operates through 16 benches across India, including the Principal Bench in New Delhi and benches in Mumbai, Chennai, Kolkata, Ahmedabad, Allahabad (Prayagraj), Bengaluru, Chandigarh, Guwahati, Hyderabad, Jaipur, Kochi, Cuttack, Indore, Amravati, and additional benches in New Delhi and Mumbai.
Can NCLT orders be appealed?
Yes. Appeals from NCLT orders lie to the National Company Law Appellate Tribunal (NCLAT) under Section 421 of the Companies Act, 2013 and Section 61 of the IBC, 2016. Further appeals from NCLAT orders lie to the Supreme Court of India.
What is the time limit for CIRP proceedings before NCLT?
Under Section 12 of the IBC, the Corporate Insolvency Resolution Process must be completed within 180 days from the date of admission of the application. The NCLT may extend this by up to 90 days in exceptional circumstances, but the total period cannot exceed 330 days including extensions and time spent in litigation.
Does the NCLT have jurisdiction over LLPs?
The NCLT does not have jurisdiction over LLPs under the Companies Act, 2013, as LLPs are governed by the LLP Act, 2008. However, the NCLT has jurisdiction over LLPs under the IBC, 2016, as LLPs are corporate persons that can be subject to insolvency proceedings.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.