The NCLT, also known as the tribunal, is a quasi-judicial body established to resolve corporate civil disputes under the Companies Act of 2013. The recommendations to establish the National Company Law Tribunal (NCLT) in India were made by the Eradi Committee. The Eradi Committee, officially known as the “High Powered Expert Committee on Companies and MRTP Acts,” was constituted in 1999 to review and suggest changes to the Companies Act, 1956, and the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969.

The Eradi Committee submitted its report in 2001, proposing significant reforms to the corporate legal framework in India. One of its key recommendations was the establishment of a specialized tribunal for company law matters to streamline the adjudication process and enhance the efficiency of resolving corporate disputes. Based on the recommendations of the Eradi Committee, the National Company Law Tribunal (NCLT) was eventually set up under the Companies Act, 2013, replacing the Company Law Board (CLB). The NCLT became operational in 2016 and has since been playing a crucial role in adjudicating various company law matters, including insolvency proceedings, mergers and acquisitions, and other disputes related to corporate governance and compliance.

1. Legislative Basis: The NCLT was established under Sections 408 to 434 of the Companies Act, 2013. These sections deal with the establishment, composition, powers, and functions of the NCLT.
2. Composition:
   • The NCLT is composed of judicial and technical members.
   • Judicial members are typically retired judges of the High Court.
   • Technical members are individuals with expertise in various fields such as law, finance, economics, accounting, and industry.
3. Appointment:
   • The members of the NCLT, both judicial and technical, are appointed by the central government.
   • The appointments are made based on the recommendations of a selection committee.
4. Jurisdiction:
   • The NCLT has jurisdiction over a wide range of company law matters, including disputes related to mergers and acquisitions, insolvency proceedings, class action suits, and others.