Section 408 of the Companies Act, 2013
Section 408 of the Companies Act, 2013 deals with the Constitution of the National Company Law Tribunal (NCLT).
📘 Section 408 – Constitution of National Company Law Tribunal
This section empowers the Central Government to constitute a National Company Law Tribunal (NCLT) to exercise and discharge the powers and functions conferred upon it under the Act.
🔍 Key Provisions:
Authority to Constitute NCLT:
The Central Government shall constitute the National Company Law Tribunal.
Purpose:
To exercise and discharge powers and functions under the Companies Act or any other law as may be provided.
Single Tribunal:
It is a single unified tribunal replacing multiple authorities such as:
Company Law Board (CLB)
Board for Industrial and Financial Reconstruction (BIFR)
High Court (in company matters)
⚖️ Objective:
To provide a specialized forum for corporate law matters.
To ensure speedy and efficient adjudication of disputes relating to companies.
To reduce burden on regular courts.
📍 Background:
NCLT was constituted on June 1, 2016, under this section.
It has Benches across India, with a Principal Bench at New Delhi.
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