What is the procedure for filing a case in NCLT?
Joginder Singh Rohilla
Advocate at High Court of Madhya Pradesh, Indore | Civil & Criminal Lawyer In Indore
Procedure for Filing a Case in NCLT
Filing a case in the National Company Law Tribunal (NCLT) involves a structured legal process. The NCLT is the adjudicating body for matters relating to corporate laws, insolvency proceedings, and other issues under the Companies Act, 2013, and the Insolvency and Bankruptcy Code, 2016. Proper preparation and adherence to procedural rules are crucial for effectively filing a case in the NCLT. Below is a detailed explanation of the process:
1. Identifying the Appropriate Jurisdiction
- Determine Jurisdiction:
- NCLT has regional benches spread across India. Select the bench that has territorial and subject matter jurisdiction over your case.
- Jurisdiction is based on:
- The registered office of the company in question.
- The type of case (e.g., corporate restructuring, insolvency, oppression and mismanagement).
- Types of Cases NCLT Handles:
- Insolvency applications.
- Oppression and mismanagement complaints.
- Petitions for mergers and acquisitions.
- Class action suits.
- Revival or restoration of companies.
2. Drafting of Petition
The petition is the foundation of your case and must be drafted carefully to ensure compliance with legal and procedural requirements.
Contents of the Petition:
1. Title of the Case:
- Mention “Before the National Company Law Tribunal.”
- Specify the bench to which the petition is addressed.
2. Details of Parties:
- Full name, designation, and address of the petitioner (applicant).
- Full name and registered office address of the respondent (opposite party/company).
3. Cause Title:
- Briefly state the subject of the petition (e.g., Petition under Section 9 of IBC for initiating CIRP).
4. Facts of the Case:
- A chronological sequence of events related to the issue.
- Evidences supporting your claim.
5. Legal Grounds:
- The legal provisions invoked (e.g., Sections of the Companies Act or IBC).
- Case law or judicial precedents supporting your case.
6. Prayer:
- The specific relief sought (e.g., resolution of debt, restoration of the company’s name, protection from oppression).
7. Verification and Affidavit:
- Verify the petition by swearing an affidavit attesting to the truth of its contents.
3. Preparing Supporting Documents
Attach all relevant documents to substantiate your claims.
Common Documents Include:
- Copy of the company’s Articles of Association (AoA) and Memorandum of Association (MoA).
- Notices, invoices, or correspondence relevant to the dispute.
- Financial statements, audit reports, or proof of payment.
- Board resolutions or minutes of meetings.
- Proof of default (in insolvency cases).
- Identity proof of the petitioner (Aadhaar, PAN).
- Other supporting evidence such as contracts, agreements, or reports.
4. Fee Payment
Filing a petition in NCLT involves the payment of prescribed fees. The fee depends on:
- The nature of the case.
- Fee schedules are outlined in the NCLT Rules, 2016.
- Fees can be paid via:
- Demand Draft (DD) or Pay Order.
- Online through the MCA (Ministry of Corporate Affairs) portal.
5. Filing of Petition
Once the petition and documents are ready, they must be submitted to the appropriate bench.
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Steps to File the Petition:
1. Submission Mode:
- File the petition physically at the registry of the respective NCLT bench.
- Alternatively, electronic filing (e-filing) can be done through the MCA portal.
2. Copies:
- Submit at least three hard copies of the petition (or as required by NCLT rules).
3. Acknowledgement:
- Upon submission, you will receive an acknowledgment from the registry.
4. Scrutiny by Registry:
- The registry verifies whether the petition complies with procedural requirements.
- If discrepancies are found, they may request corrections.
6. Issuance of Notice
After the petition is admitted:
- Notice to Respondent:
- NCLT issues a notice to the respondent (opposing party) to appear and submit their response.
- The respondent must file a reply affidavit and supporting documents within the specified time.
7. Hearing and Arguments
Once the parties have filed their pleadings:
- Preliminary Hearing:
- NCLT may conduct an initial hearing to determine the maintainability of the petition.
- If admitted, it schedules further hearings.
- Final Hearing:
- Arguments by both parties are presented before the tribunal.
- Evidence, witnesses, and legal precedents are submitted.
- The NCLT bench may ask for additional clarifications or submissions if necessary.
8. Orders of NCLT
- After hearing both parties, the NCLT passes its order.
- Orders include:
- Directions for corporate restructuring, insolvency resolution, or winding up.
- Relief for oppression or mismanagement cases.
- Penalties for non-compliance.
- NCLT orders are binding and enforceable.
9. Appeals Against NCLT Orders
- If a party is dissatisfied with the NCLT's order, they can file an appeal before the National Company Law Appellate Tribunal (NCLAT).
- Further appeals, if required, can be filed in the Supreme Court of India.
Timeframe for Filing and Resolution
- The NCLT is expected to adhere to strict timelines for resolving disputes:
- Insolvency cases: 180 days, extendable by 90 days under IBC.
- Other cases may vary depending on their complexity.
Checklist Before Filing a Case
1. Ensure proper jurisdiction (territorial and subject-matter).
2. Draft the petition with clear legal grounds and appropriate prayers.
3. Compile complete documentation supporting your claims.
4. Pay the applicable filing fees as per the NCLT Rules, 2016.
5. Follow procedural formalities, including affidavits and verification.
Conclusion
Filing a case in the NCLT requires precise knowledge of corporate laws, adherence to procedural requirements, and preparation of convincing arguments backed by documentary evidence. Engaging an experienced lawyer with expertise in NCLT matters can significantly improve the chances of success. Proper compliance with NCLT rules ensures the process moves efficiently, leading to timely resolution of disputes.
Disclaimer: This information is intended for general guidance only and does not constitute legal advice. Please consult with a qualified lawyer for personalized advice specific to your situation.
Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)
Contact: 88271 22304