PRACTICAL & PROCEDURAL

ASPECTS OF NCLT/ NCLAT

CS Karishma BUTANI
Assistant Professor
Institute of Commerce
Nirma University
 PARADIGM
SHIFT

NCLT & NCLAT

 INTRODUCTION

The Central Government has constituted NCLT & NCLAT with

effect from 1st June, 2016 under powers conferred upon it under
Section 408 and Section 410 of the Companies Act, 2013
respectively .

NCLT to act a simpler , speedier single judicial forum to

adjudicate all disputes concerning the affairs of companies.
 NCLT

At present, NCLT has seventeen Benches including four

Benches at New Delhi and Benches at Ahmedabad,
Allahabad, Bengaluru, Chandigarh, Chennai (two),
Guwahati, Hyderabad (two), Kolkata and Mumbai
(three). The Central Government is contemplating to set
up NCLT Benches at Jaipur, Cuttack and Cochin.
 NCLT

 The NCLT comprises of a president and as many as

judicial and technical members as necessary.
 Justice M.M. Kumar, former Chief Justice of the High
Court of Jammu and Kashmir is the president of the
NCLT.
 NCLAT

 NCLAT, the appellate body, consists of a

chairperson and a maximum of eleven judicial
and technical members.
 Justice S.J. Mukhopadhaya, a retired judge of
the Supreme Court of India, is the chairperson
of the NCLAT.
AUTHORIZATION FOR APPEARANCE
Appearance

Section 432 of the Act authorises the party to any proceeding or appeal to
appear in person or through CA, CS, CMA or legal practitioner.
 APPEAL BEFORE NCLAT

Any order passed or interim direction given in the proceedings before

NCLT under the Companies Act, appeal before NCLAT can be filed within

45 days and the appeal against the order of NCLAT can be preferred

within 60 days before SC.

HIGHLIGHTS OF NCLT & NCLAT RULES
 DECIPHERING NCLT RULES
Rules notified are fairly comprehensive divided into XX
Parts. 165 rules have been notified under resp. heads.

Rule 8: “Sitting of NCLT ”:-NCLT shall hold its sitting at its

headquarters or at such other place falling within its territorial
jurisdiction.

Rule 9 : “Sitting hours of NCLT” : 10:30 AM to 1:00 PM

& 2:00 P.M. to 4:30 PM.

Rule 11: “Inherent Powers of NCLT’’ to make such orders

necessary to achieve justice.
 DECIPHERING NCLT RULES
Rule 13 : “ Listing of cases” Urgent matters before 12 noon & in
exceptionally after 12 noon but before 3.00 P.M.

Rule 20 “Procedure”:- It sets out the manner in which every

appeal/ petition/ application/ caveat petition/ objection/ counter
presented to the NCLT. For e.g.

Cause Title Shall state “Before the NCLT” & proceedings or

order of the authority against which it is preferred.

Para wise Appeal/petition/ application divided into para,

fact/point numbered consecutively, each para shall contain as
nearly as may be, a separate fact / allegation / point
 DECIPHERING NCLT RULES
Rule 23: Presentation of petition/ appeal: In triplicate with
stipulated fee.

 Petition/ application/ Appeal accompanied by certified

documents & an index in triplicate with details & fee paid.

Rule 24: No. of copies to be filed: The petitioner/ appellant/

applicant or respondent shall file THREE authenticated copies of
appeal/ petition/ application as the case may be, and shall deliver
one copy to each of the opposite party.
SCHEDULE OF FEES
NCLT Rules provide specific fees for corresponding sections. Some of
them demonstrated below:-
SCHEDULE OF FEES
SEC OF THE FEES (IN
S.N
COMPANIES ACT NATURE OF APPLICATION RUPEES
O.
2013 )
1. S. 14(1) Conversion of public company 5,000
into a private Company
2. S. 241 (1) Application in case of oppression 10,000
& mismanagement

The fee is to be paid by way of demand draft/ IPO drawn in favour of the “
The Pay & Accounts Officer, Ministry of Corporate Affairs”
SCHEDULE OF FEES
NCLT Rules provide specific fees for corresponding sections. Some of
them demonstrated below;-
SCHEDULE OF FEES
SEC OF THE FEES (IN
S.N
COMPANIES ACT NATURE OF APPLICATION RUPEES
O.
2013 )
3. S. 245 Class action suits 5,000

4. S. 441(1) Application for compounding of 1,000

certain offences

Fees for inspection is prescribed as Rs. 200 /- per inspection as per Rule 114
as per NCLT Order dated August 2, 2016.
 CHECKLIST: NCLT
For scrutiny of application
S.N CORR.
O
TO BE ASCERTAINED RULE NO.
1. Whether application falls under territorial jurisdiction of NCLT 64
bench
2. Whether application & all enclosures are legible & in English 20
Language
3. Whether application has printed in double spacing on one side of 20
standard paper with an inner margin of abt. 4cm width on top and
with a right margin of 2.5 cm, and left margin of 5 cm, duly
paginated, indexed and stitched together in paper book form?
4. Whether the application has been signed at the foot of every page 26
by all parties & their name has also been mentioned
5. Whether fax number, mobile number and e-mail address of the 21(d)
parties has been mentioned in application
6. Whether every interlineation, eraser or correction or deletion in 22
application has been initialled by the party or his AR
 CHECKLIST: NCLT
For scrutiny of application
S.NO TO BE ASCERTAINED CORR. RULE
8. Whether affidavits ( Form No. NCLT-6) verifying the 34(4)
application from all parties drawn on non-judicial stamp paper
of req. value duly attested by Notary/Oath Commissioner has
been filed?
9. Whether full name, parentage, description of each party & 20(5)
address and in case a party sue or being sued in a representative
character, set out at the beginning of the application
10. Whether documents produced before NCLT are marked 133
For Petitioner/ Appellant’s side as ‘A’
For Respondent’s side as ‘B’
For Tribunal Exhibits as ‘C’
11. Whether application has been filed in three authenticated copies 24
& delivered to the opposite party-.
12. Whether application has been in drawn as per prescribed form in 112
Annexure-A of NCLT Rules, 2016 with stipulated fees paid by way of
demand draft/ IPO drawn in favour of the “ The Pay & Accounts
Officer, Ministry of Corporate Affairs,”.
FEW FORMS W.R.T NCLT RULES

FORM NO. DESCRIPTION CORR RULE(S)

FORM NCLT- General Heading for proceeding 4 (Forms)

1 34(General
Procedure)
64(Matter earlier
dealt by CLB) ETC.
FORM NCLT- General Heading for proceeding RULE 34
4 (General Procedure)

FORM NCLT- General Affidavits verifying petition RULE 34

6 (General Procedure

FORM NCLT- Memorandum of Appearance RULE 45

12 (Rights of a party to
appear before the
Tribunal)
 DECIPHERING NCLAT RULES
Rules notified are fairly comprehensive divided into XVI Parts.
104 rules have been notified under resp. heads.

Rule 8: “Sitting of NCLAT ”:-NCLAT shall hold its sitting at its

headquarters in New Delhi.

Rule 9 : “Sitting hours of NCLAT” : 09.30 AM. to 0l.00 P.M. and

from 2.15 p.m. to 5.00 p.m.
 DECIPHERING NCLAT RULES
Rule 11 : “Inherent Powers” to make such orders/ directions as
may be necessary for meeting the ends of justice or to prevent
abuse of the process of the Appellate Tribunal .

Rule 13 : “ Listing of cases” Urgent matters before 12 noon & in

exceptional cases, it may be received after 12 noon but before 3.00
P.M.

Rule 14 : “Power to exempt” may on sufficient cause being

shown, exempt the parties from compliance with any requirement
of these rules as it may consider just and expedient on the
application moved in this behalf to render substantial justice
 DECIPHERING NCLAT RULES
Rule 15 “Power to extend time” may extend the time appointed
by these rules or fixed by any order, for doing any act or taking
any proceeding, upon such terms, if any, as the justice of the case
may require.

Rule 19 “Procedure”:- It sets out the manner in which every

appeal shall be presented to the NCLAT.
Cause Title Shall state “In the NCLAT” & proceedings or order
of the authority against which it is preferred.
Para wise Appeal divided into para, numbered consecutively,
fact/point each para shall contain as nearly as may be, a
separate fact / allegation / point
 DECIPHERING NCLAT RULES
Rule 31: Interlocutory applications:
Every interlocutory application for stay, condonation of delay,
extension of time etc. in pending matters shall be in FORM
NCLAT-2 .Other requirements to be met besides filing affidavit.

Rule 64: Proof of engagement of Authorised Representatives :

 Advocates if appearing shall submit Vakalatnama.
 CA/ CS/ Cost accountant shall submit Memorandum Of
Appearance.
SCHEDULE OF FEES
NCLAT Rules provide specific fees for corresponding sections.
Some of them demonstrated below;-
SCHEDULE OF FEES
SEC OF THE FEES (IN
S.N
COMPANIES ACT NATURE OF APPLICATION RUPEES
O.
2013 )
1. Sec. 218(3) Protection of employee during 1000
investigation
2. Sec. 421(1) Appeals to NCLAT 5000
The fee is to be paid by way of demand draft/ IPO drawn in favour of the
“ The Pay & Accounts Officer, Ministry of Corporate Affairs, New Delhi
 FORMS
W.R.T NCLAT RULES
IMPORTANT FORMS SPECIFIED IN NCLAT RULES
FORM NO. CORRESPONDING RULE DESCRIPTION

FORM RULE 22 Memorandum of Appeal

NCLAT-1 (Presentation of appeal) Preferred under S. 421 of
Act.
FORM RULE 31 Interlocutory application
NCLAT-2 (Interlocutory Application) format

FORM RULE 59 Application for Inspection

NCLAT-3 (Application for Inspection) format

FORM RULE 68 Affidavit Format

NCLAT-4 ( Form & Contents of
Affidavit
CONDUCT AND ETIQUETTE
DUTY TO THE TRIBUNAL - CONDUCT
YOURSELF WITH DIGNITY AND SELF-
R E S P E C T.

D U T Y T O C L I E N T - D O N ’ T W I T H D R AW
FROM ENGAGEMENTS ONCE
ACCEPTED, WITHOUT SUFFICIENT
CAUSE.
DUTY TO OPPONENT - DO YOUR BEST
T O C A R RY O U T P R O M I S E S M A D E T O
T H E O P P O S I T E - PA R T Y.
 PROFESSIONAL ETIQUETTES

1. DRESSING ETIQUETTES

• Navy Blue suit and white shirt.

• Saree or any other dress of a sober colour with a Navy
Blue jacket.

2. HANDSHAKE ETIQUETTES

3 . C O M M U N I C AT I O N E T I Q U E T T E S
 TIME MANAGEMENT

1. BEING BUSY ISN’T THE SAME AS

BEING EFFECTIVE.

2. SPEND MORE TIME ON SPECIFIC

ACTIVITIES.

3 . U S E Y O U R F R E E T I M E W I S E LY.

4 . AT T E M P T T H E A S S I G N M E N T O N
PRIORITY BASIS.
MYTHS
Only lawyers can draft.

I have been practicing as a Company

Secretary for 10-20 years. It’s difficult to
venture into a new arena.

Drafting is a burden.

I have not studied the subject(s).

 APPEARANCE, ART OF
ADVOCACY, COURT CRAFTS
APPEARANCE, ART OF ADVOCACY &
COURT CRAFT
Art of Advocacy & Court Craft

Preparing a case, knowing the law and the precedents are not
sufficient to present the case before the Tribunal. This requires a
lot of human skills apart from technical and procedural skills.

Some of the key points to be considered while appearing &

pleading the case before Tribunal.

1. Leaving a good impression : Remember that you are

always being observed.
APPEARANCE, ART OF ADVOCACY &
COURT CRAFT
Art of Advocacy & Court Craft

2. Observe mannerism : Be polite but firm in your conduct.

3. Be on time & well prepared : Reach early so there is time to

speak to opposing counsel for a last minute resolution . The court
appreciates orderly conduct which creates a long lasting
impression.

4.Be friendly to the opposing counsel: Introduce yourself to

opposing counsel and initiate a small conversation.
APPEARANCE, ART OF ADVOCACY &
COURT CRAFT
Art of Advocacy & Court Craft

5.Keep your client informed : Talk to your client in language

they understand. A well-informed client seems to be a much more
settled client.

6. Know your audience: Every Tribunal is different. Therefore,

tailor your advocacy style to suit the forum.

7. Service of documents: While tendering documents/ citations

to Tribunal, ensure to have enough copies to
circulate to other side.
APPEARANCE, ART OF ADVOCACY &
COURT CRAFT
Art of Advocacy & Court Craft

8. Believe in Submission: Regardless of the case, believe in your

submissions. Tribunal observes when there is a half hearted
submission.

9. Be clear & slow:  Speak slowly and clearly because the

Presiding member generally takes notes.

10. Be honest with the Tribunal: About your case and

timeframes.
ART OF ADVOCACY & COURT CRAFTS
11. Last-minute basics:

• Turn your phone to silent

• Face the bench and bow from the waist whenever you enter or

leave a sitting courtroom.

• Have the phone numbers of all of the persons connected with

the case including opposing counsel.

• Stand when addressing the court.

ART OF ADVOCACY & COURT CRAFTS

•State brief facts of the case.

•Formulate issues/points.

•Take each point and state relevant facts.

•Submit a list of citations to the Tribunal & hand over the Xerox

copies of binding decisions to the Court Master/opposing

counsel.