Companies Act Section 2(29) Court

Court Section 2(29)

The term "Court" refers to the National Company Law Tribunal (NCLT) established under Section 408 of the Companies Act, 2013, or any other court specified by the Central Government for the jurisdiction of matters related to companies.

Key Aspects and Jurisdiction:

1. National Company Law Tribunal (NCLT):

The NCLT is a specialized quasi-judicial body established under the Companies Act, 2013, with primary jurisdiction over matters related to companies, including:

Company law violations and compliance issues.

Corporate restructuring, mergers, demergers, and amalgamations.

Insolvency and bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC), 2016.

Winding up of companies and liquidation proceedings.  

2. Powers and Functions:

The NCLT exercises powers akin to a civil court, including the summoning and enforcing attendance of witnesses, examination of witnesses on oath, discovery and inspection, and production of documents.

It has the authority to adjudicate on disputes, approve schemes of arrangements, and pass orders on corporate matters brought before it under the Companies Act and other applicable laws.

3. Appellate Authorities:

Appeals against orders of the NCLT lie with the National Company Law Appellate Tribunal (NCLAT) established under the Companies Act, 2013. 

The NCLAT serves as the appellate authority for decisions passed by the NCLT.

4. Other Designated Courts:

The Central Government may specify other courts or tribunals with jurisdiction over specific matters related to companies, as per the provisions of the Companies Act, 2013.

Importance and Functions:

1. Specialized Adjudication: 

The establishment of the NCLT provides specialized expertise in adjudicating complex corporate matters, ensuring efficient resolution of disputes and adherence to corporate governance norms.

2. Uniformity and Efficiency: 

Centralizing jurisdiction under the NCLT promotes consistency in decisions and facilitates timely resolution of corporate disputes, thereby enhancing investor confidence and promoting ease of doing business.

3. Insolvency Proceedings: 

The NCLT plays a crucial role in insolvency proceedings, overseeing the resolution and liquidation processes of financially distressed companies under the framework of the Insolvency and Bankruptcy Code (IBC), 2016.

Legal Framework and Compliance:

Companies Act, 2013: 

The role, powers, and functions of the NCLT, as defined under Section 408 of the Companies Act, 2013, govern its operations and jurisdiction over matters related to companies.

Insolvency and Bankruptcy Code (IBC), 2016: 

The NCLT adjudicates insolvency proceedings and corporate restructuring under the provisions of the IBC, ensuring the orderly resolution of financial distress and maximization of creditor recovery.