Law, Legislation & Guidelines:
1. Law: These are a set of rules enforced by a particular country or community to regulate actions of its members and can be enforced through penalties or punishments.
2. Legislation: It refers to laws that are created by a governing body, such as the Parliament in India. It generally involves writing, passing, and implementing laws that guide how society should function.
3. Guidelines: These are a set of instructions or recommendations provided by an authoritative entity. They are not legally binding like laws but serve as useful guiding principles for a certain objective or process.
The National Company Law Tribunal (NCLT) is a quasi-judicial body in India that adjudicates issues related to Indian companies. It was established under the Companies Act 2013 and operates according to the rules stipulated in the NCLT Rules, 2016.
The primary legislation guiding the NCLT’s function is the Companies Act 2013, which is a law enacted by the Indian Parliament. This Act replaced the previously existing Companies Act 1956 and introduced several significant changes in company law in India. The Act lays out provisions about the functioning of companies, duties and responsibilities of company directors and secretaries, and how disputes are to be resolved.
One of the most critical functions of the NCLT under this Act is to handle cases related to insolvency or bankruptcy of companies under the Insolvency and Bankruptcy Code 2016. This law was specifically designed to simplify the process of insolvency and bankruptcy and ensure faster resolution.
In addition to these laws, NCLT also operates according to guidelines established by the Ministry of Corporate Affairs. The NCLT follows the National Company Law Tribunal Rules, 2016, which were designed to guide the functioning of the NCLT and outline procedures for its operations.
One of the key principles of NCLT’s operation is transparency, and to this end, it publishes judgments and orders on its official website, allowing businesses and the general public to understand how it interprets and applies laws.
In conclusion, the understanding and interpretation of laws, legislation, and guidelines by legal experts play a crucial role in the functioning of NCLT as they provide a framework within which the tribunal operates. Compliance with these regulations is essential for businesses operating in India.