"NCLT works on the lines of a normal Court of law in the country and is obliged to fairly and without any biases determine the facts of each case and decide with matters in accordance with principles of natural justice a

Section 408 of Companies Act, 2013(Act) deals with the provisions of constitution of National Company Law Tribunal ("NCLT" or "The Tribunal). The Central Government has constituted National Company Law Tribunal (NCLT) under section 408 of the Companies Act, 2013(Act) w.e.f. 01st June 2016. The setting up of the NCLT as a specialized institution for corporate justice is based on the recommendations of the Justice Eradi Committee. NCLT works on the lines of a normal Court of law in the country and is obliged to fairly and without any biases 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. The orders so formed by NCLT could assist 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 is exempted from the requirement to adhere severe rules with respect to appreciation of any evidence or procedural law. As per Section 424 of the Act, the Tribunal shall not, while disposing of any proceeding before it, be bound by the procedure laid down in the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice, and, subject to the other provisions of this Act or of the Insolvency and Bankruptcy Code, 2016 and of any rules made thereunder, the Tribunal shall have power to regulate their own procedure. The Tribunal shall have, for the purposes of discharging their functions under this Act or under the Insolvency and Bankruptcy Code, 2016, the same powers as are vested in a civil Court under the Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely: summoning and enforcing the attendance of any person and examining him on oath, requiring the discovery and production of documents; receiving evidence on affidavits; subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872, requisitioning any public record or document or a copy of such record or document from any office: issuing commissions for the examination of witnesses or documents; dismissing a representation for default or deciding it ex parte: setting aside any order of dismissal of any representation for default or any order passed by it ex parte; and any other matter which may be prescribed All proceedings before the Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 (Punishment for false evidence) and 228 (Intentional insult or interruption to public servant sitting in judicial proceeding), and for the purposes of section 196 (Using evidence known to be false) of the Indian Penal Code, and the Tribunal shall be deemed to be civil Court for the purposes of section 195(Prosecution for contempt of lawful authority of public servants, for offences against public justice and for offences relating to documents given in evidence) and Chapter XXVI(Provisions as to offences affecting the administration of Justice) of the Code of Criminal Procedure, 1973. Any order made by the Tribunal may be enforced by that Tribunal in the same manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the Tribunal or the Appellate Tribunal to send for execution of its orders to the court within the local limits of whose jurisdiction: in the case of an order against a company, the registered office of the company is situate; or in the case of an order against any other person, the person concerned voluntarily resides or carries on business or personally works for gain. Further, as per Sec 420 of the Act, the Tribunal may, after giving the parties to any proceeding before it, a reasonable opportunity of being heard, pass such orders thereon as it thinks fit, or, at any time within two years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it, and shall make such amendment, if the mistake is brought to its notice by the parties. Further, as per Sec 421 of the Act, any person aggrieved by an order of the Tribunal may prefer an appeal to the Appellate Tribunal established under Sec 410 of the Act. And no appeal shall lie to the Appellate Tribunal from an order made by the Tribunal with the consent of parties.