Description
GS PAPER II: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Context: The NCLT has ordered liquidation of Devas Multimedia Pvt Ltd.
- NCLT has directed the Official Liquidator (OL) to take expeditious steps to liquidate the company in order to prevent it from perpetuating its fraudulent activities and abusing the process of law in enforcing the award passed in 2015 by the arbitration tribunal of the International Chamber of Commerce (ICC).
About NCLT:
- It is a quasi-judicial body in India that adjudicates issues relating to Indian companies.
- The tribunal was established under the Companies Act 2013 based on the recommendation of the Balakrishna Eradi committee on law relating to the insolvency and the winding up of companies.
- Composition: The NCLT bench is chaired by a Judicial member who is supposed to be a retired or a serving High Court Judge and a Technical member who must be from the Indian Corporate Law Service, ICLS Cadre.
Role and responsibilities of NCLT:
- All proceedings under the Companies Act, including proceedings relating to arbitration, compromise, arrangements, reconstructions and the winding up of companies are disposed off by the National Company Law Tribunal.
- It is the adjudicating authority for the insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.
Special powers:
- No criminal court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Tribunal or the Appellate Tribunal is empowered to determine.
Appeals:
- Decisions of the tribunal may be appealed to the National Company Law Appellate Tribunal, the decisions of which may further be appealed to the Supreme Court of India on a point of law.
- The Supreme Court of India has upheld the Insolvency and Bankruptcy Code in its entirety.
https://www.thehindu.com/news/national/karnataka/antrix-deal-nclt-orders-winding-up-of-devas-for-indulging-in-fraud/article34646993.ece?homepage=true
