🇮🇳 Trending in India · 30 October 2026
What is the NCLT, and why did the Supreme Court criticise its staffing?
What is the NCLT?
The National Company Law Tribunal (NCLT) is a quasi-judicial body, which means it works like a court but is not a regular court. It handles company law and corporate insolvency cases. The Central Government set it up under Section 408 of the Companies Act, 2013, and it began work on 1 June 2016. The idea came from the V. Balakrishna Eradi committee's report on insolvency and the winding up of companies.
What does it do?
The NCLT took over the work of older bodies such as the Company Law Board, which worked under the Companies Act, 1956. It hears cases about oppression and mismanagement in companies and about winding up (closing) companies. Under the Insolvency and Bankruptcy Code (IBC), 2016, it is the 'adjudicating authority' for insolvency cases of companies and limited liability partnerships (LLPs). Insolvency cases of individuals and partnership firms go to Debt Recovery Tribunals (DRTs) instead.
Benches and appeals
In the first phase, 11 benches were set up: a Principal Bench in New Delhi plus regional benches in cities such as Mumbai, Chennai, Kolkata and Bengaluru. Benches were later added at Cuttack, Jaipur, Kochi, Amaravati and Indore, so Kerala has its own bench in Kochi. Each bench has a judicial member, who is a serving or retired High Court judge, and a technical member. An NCLT order can be appealed to the National Company Law Appellate Tribunal (NCLAT), and an NCLAT order can be appealed to the Supreme Court, but only on a question of law.
Why the Supreme Court spoke up
Contract workers at the NCLT and NCLAT went to court because they feared losing their jobs after a private company was hired to supply staff. The bench of Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice V. Mohana said the presidents of the two tribunals should fully control staff hiring. As a short-term step, it suggested bringing in staff on deputation from government departments. For the long term, it suggested regular recruitment through the UPSC or the SSC.
Quick points
Quick quiz
1. The National Company Law Tribunal (NCLT) was set up under which section of the Companies Act, 2013?
2. Under the Insolvency and Bankruptcy Code, 2016, which body is the adjudicating authority for insolvency cases of companies and LLPs?
3. Which committee's recommendation led to the creation of the NCLT?
