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3) Discuss the functioning and the role of NCLT in resolving corporate disputes.(250 words)

Topic– Statutory, regulatory and various quasi-judicial bodies.

3) Discuss the functioning and the role of NCLT in resolving corporate disputes.(250 words)




Why this question

The National Company Law Tribunal (NCLT) is an important quasi-judicial body, that adjudicates issues relating to the Companies in India. It is important to know its role and functioning.

Key demand of the question.

The question wants us to write in detail about how the NCLAT functions; and what functions it performs vis a vis resolution of corporate disputes in India.

Directive word

Discuss- This s an all-encompassing directive which mandates us to write in detail about the key demand of the question. We also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.

Structure of the answer

Write a few introductory lines about the nature, history and the purpose of NCLT. e.g it is a quasi-judicial body; constituted under companies act, 2013; on the recommendation of committee; replaced Company law board, BIFR etc.


  • Discuss the functioning of NCLT. E.g NCLT works on the lines of a normal Civil Court and is obliged to act fairly and without any bias; determine the facts of each case and decide with matters in accordance with principles of natural justice and in the continuance of such decisions, offer conclusions from decisions in the form of orders; It helps in resolving a situation, rectifying a wrong done by any corporate or levying penalties and costs and might alter the rights, obligations, duties or privileges of the concerned parties. The Tribunal isn’t required to adhere to the severe rules with respect to appreciation of any evidence or procedural law.
  • Discuss the role of NCLT. e.g NCLT has been empowered in taking several steps, from cancelling the registration of a company to dissolving any company in cases of non-adherence to procedures or fraudulent registration; empowered to hear grievances of rejection of companies in transferring shares and securities; provide necessary solutions for companies facing issues related to winding up, mismanagement, and insolvency of businesses. Being the only tribunals for arbitrating company disputes,  it eliminates the overlap of or occurrence of conflicting rulings and minimize the delays in the resolution of disputes etc

Conclusion- mention the NCLAT and the role of courts in resolving corporate disputes and form a fair and a balanced conclusion on the issue.