National Company Law Appellate Tribunal to function in Chennai from December
Posted on: 30/Oct/2019 4:10:48 PM
In a parallel operation to the existing National Company Law Appellate Tribunal functioning in Delhi, a new tribunal will start sitting (functioning) a Chennai from December.
These tribunals conduct enquiries on cases pertaining to the loans taken by the private companies, announcements of bankruptcy, etc. Presently, there are Company Act Boards in every state to conduct enquiries on issues such as the recovery of loans, bankruptcy, etc.
In case the concerned parties are interested in appealing to higher authority disputing the verdict of these boards, they have to appeal to the National Company Law Appellate Tribunal. This involves a pretty high expenditure and extraordinary time wasted.
An auditor from Chennai, V. Venkata Sivakumar, filed a petition last year in the Chennai High Court to set up a National Company Law Appellate Tribunal in Chennai. However, this case was dismissed.
Almost around the same time, the central government took a decision to set up a National Company Law Appellate Tribunal in Tamil Nadu, Chennai as well. On this basis, the selection of the location for this is in progress.
The state government of Tamil Nadu has selected 2 locations including Kuralagam and forwarded the same to the central government. The central government finance ministry and Corporate Affairs ministry officials are scheduled to inspect these places during this week.
Once this task gets completed, the new National Company Law Appellate Tribunal at Chennai will start functioning. As this tribunal would be equivalent to the one in Delhi in all aspects and features, a situation has come forth where there would be no necessity for expensive travel to Delhi anymore and there would be considerable time saved as well.
