• India
  • Jun 07

What is the role of NCLT?

• The National Company Law Tribunal (NCLT) approved the merger of Air India and Vistara on June 6.

• Tata Group took over the reins of Air India in January 2022. 

• Post-merger, which was announced in November 2022, Singapore Airlines will have a 25.1 per cent stake in Air India. Vistara is a joint venture between Singapore Airlines and Tata Group.

• Air India expects the merger to be completed by the end of this year.

• A two-member bench of the Chandigarh bench of NCLT observed that the scheme has already received necessary approvals from the shareholders and creditors of both airline companies.

What is National Company Law Tribunal (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.

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