National Company Law Tribunal (NCLT)
Role in India's Insolvency Ecosystem
The NCLT is a quasi-judicial body established under the Companies Act, 2013 (Section 408), and serves as the adjudicating authority for corporate insolvency matters under IBC. It replaced the earlier Company Law Board (CLB) and took over functions from Board for Industrial and Financial Reconstruction (BIFR). NCLT has benches across India; the principal bench is in New Delhi.
Key roles of NCLT in IBC: - Admits or rejects applications for CIRP (filed by financial creditors, operational creditors, or the corporate debtor itself). - Approves appointment of Insolvency Professionals. - Approves or rejects resolution plans submitted by the CoC. - Adjudicates avoidance transaction applications filed by the RP. - Oversees liquidation proceedings when no resolution plan is approved.
- Financial creditors (banks, NBFCs, bondholders) initiate most CIRP cases — they have the right to form the CoC.
- Operational creditors (suppliers, employees, government) can also trigger CIRP but are not part of the CoC.
- The Supreme Court, in Essar Steel (2019), upheld the constitutionality of IBC and affirmed the supremacy of the CoC's commercial decision-making within the timeline framework.
- NCLAT (National Company Law Appellate Tribunal) hears appeals from NCLT; further appeals go to the Supreme Court on questions of law.
● Tracked since April 01, 2026 · last seen July 03, 2026 · updates as the daily brief publishes