Supreme Court on Wednesday asked the Centre to file an affidavit by Thursday on steps it has taken to set up National Company Law Tribunal (NCLT) and its appellate body, National Company Law Appellate Tribunal (NCLAT).
According to the new Companies Act, both BIFR and Company Law Board were to be scrapped once NCLT was notified. NCLT was expected to be operational by April, with a principal Bench based in Delhi and 20 Benches in other cities.
The five-judge constitution Bench headed by Chief Justice HL Dattu reserved verdict on a petition challenging the validity of the NCLT and NCLAT constituted under the Companies Act, 2013, as their creation would result in the complete transfer of the judicial powers of the High Courts to them.
Senior counsel Arvind Dattar, appearing for the Madras Bar Association, argued that “if the NCLT becomes operational, the HCs would be left with virtually no matter under the Companies Act, 2013.”