• The National Company Law Appellate Tribunal (NCLAT) delivered its verdict on Google’s alleged anti-competitive practices in the android mobile device case.

• On October 20 last year, the Competition Commission of India (CCI) slapped a penalty of Rs 1,337.76 crore on Google for anti-competitive practices in relation to Android mobile devices. The regulator also ordered the internet major to cease and desist from various unfair business practices.

• This ruling was challenged before the NCLAT, which is an appellate authority over the orders passed by the CCI.

• While upholding the fine imposed by the CCI for exploiting its dominant position in Android, the NCLAT struck down an anti-trust regulator order that had said Google will not restrict the removal of its pre-installed apps by the users. 

• A two-member bench of the NCLAT has asked Google to implement the direction and deposit the amount in 30 days.

• The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) come under the administration of the ministry of corporate affairs.

What is the NCLT?

• The National Company Law Tribunal (NCLT) is a quasi-judicial body that adjudicates issues relating to Indian companies.

• The NCLT was established under the Companies Act, 2013, and was constituted on June 1, 2016 by the Union government.

• It was based on the recommendation of the Justice Eradi Committee on law relating to insolvency and winding up of companies. All proceedings under the Companies Act, including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies, shall be disposed of by the NCLT.

• It is tasked with the key job of helping recover corporate loans.

• The NCLT is the adjudicating authority for insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.

• Decisions of the NCLT may be appealed at the National Company Law Appellate Tribunal (NCLAT). The NCLAT decisions can be challenged at the Supreme Court on a point of law.

• NCLT, besides a principal bench at New Delhi, has 15 other benches — Ahmedabad, Allahabad, Amravati, Bengaluru, Chandigarh, Chennai, Cuttack, Guwahati, Hyderabad, Kolkata, Mumbai, Jaipur, Kochi, Amravati, and Indore. 

What is the NCLAT?

• The National Company Law Appellate Tribunal (NCLAT) was constituted under Section 410 of the Companies Act, 2013, for hearing appeals against the orders of NCLT.

• It was established on June 1, 2016.

• It has two benches — one principal bench at New Delhi and the other in Chennai

• The NCLAT is the appellate tribunal for hearing appeals against the orders passed by NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC), with effect from December 1, 2016.

• The NCLAT is the appellate tribunal for hearing appeals against the orders passed by Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC.

• It is the appellate tribunal to hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India - as per the amendment brought to Section 410 of the Companies Act, 2013, by Section 172 of the Finance Act, 2017, with effect from May 26, 2017.

• It is also the appellate tribunal to hear and dispose of appeals against the orders of the National Financial Reporting Authority.

Additional read:

Why do we need competition in the market?

Competition is now almost universally acknowledged as the best means of ensuring that consumers have access to the broadest range of services at the most competitive prices. Producers will have maximum incentive to innovate, reduce their costs and meet consumer demand.

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