Role of NCLT & NCLAT in the Resolution of Corporate Disputes

Abstract

After the 2013 Companies Act, Indian law changed how it handled company disputes. NCLT and NCLAT formed the National Company Law Appellate Tribunal. A speedy and equitable resolution of business disputes is the primary goal of these courts. Cases might take years to wind their way through conventional courts before this statute, leading to unnecessary delays and uncertainty. The current goal of the NCLT and NCLAT is to make judgments more quickly to maintain a stable business climate. They lessen the load on normal courts and increase legal efficiency while also helping to resolve conflicts fairly. A variety of business-related matters, including insolvency, mergers, and company laws, are heard by the NCLT. Since it is a specialized tribunal, it hears and decides cases exclusively involving corporations. Parties have the opportunity to dispute decisions made by the NCLT through the NCLAT, which acts as an appellate tribunal. With its tiered approach, this design establishes a transparent legal procedure for settling business disputes in a way that is both orderly and easy to understand. This study examines the NCLT and NCLAT's organizational structure in great depth. It looks at how they handle conflicts that come up because of the Companies Act. The study delves further into their efficiency in delivering fair and transparent justice promptly. This article seeks to analyze whether these tribunals have achieved their objectives of lowering court backlog and simplifying dispute settlement. Recent case law exemplifies the tribunals' operations and the influence they have on the corporate legal system. This study assesses their impact on India's legal system by looking at how they work, the choices they make, and the functions they perform. It focuses on how they help businesses thrive and deal with problems more effectively.