National Company Law Tribunal Rules, 2016 Definitions and Its Analysis

Ministry of Corporate affairs wide notification, 1st Day of June, 2016 NCLT and NCLAT become reality and as on date of 21^st Day of July, 2016, Central Government exercise the power conferred by section 469 of the Companies Act, 2013 make rules which is called National Company Law Tribunal Rules, 2016.

DEFINITIONS UNDER NATIONAL COMPANY LAW TRIBUNAL RULES, 2016

Application: - Any application, interlocutory application or proceedings filed under the provisions of the Act, including any transferred application or transferred petition as defined under sub-rule (29)

Transferred Application or Transferred Petition - Any proceeding which has been transferred to the Tribunal from the Company Law Board, the High Court, District Court, Board for Industrial and Financial Reconstruction as provided in clause (a), (c) and (d) of sub-section 1 of section 434 of the Act;

As per Clause (a), (c) and (d) of Sub-section 1 of section 434 says about:-

a.      All matters, proceedings or cases pending before the Board of Company Law Administration (herein in this section referred to as the Company Law Board) constituted under sub-section (1) of section 10E of the Companies Act, 1956, immediately before such date shall stand transferred to the Tribunal and the Tribunal shall dispose of such matters, proceedings or cases in accordance with the provisions of this Act;

c.     All proceedings under the Companies Act, 1956, including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies, pending immediately before such date before any District Court or High Court, shall stand transferred to the Tribunal and the Tribunal may proceed to deal with such proceedings from the stage before their transfer.

d.   Any appeal preferred to the Appellate Authority for Industrial and Financial Reconstruction or any reference made or inquiry pending to or before the Board of Industrial and Financial Reconstruction or any proceeding of whatever nature pending before the Appellate Authority for Industrial and Financial Reconstruction or the Board for Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provisions) Act, 1985 immediately before the commencement of this Act shall stand abated:

Address for Service: - Mean the address furnished by a party or his authorised representative at which service of summons, notices or other processes may be effected under these rules;

Applicant: - Means a petitioner or an appellant or any other person or entity capable of making an application including an interlocutory application or a petition or an appeal under the Act;

Advocate: - Means a person, who is entitled to practise as such under the Advocates Act, 1961

Authorised Representative: - Means a person authorised in writing by a party to present his case before the Tribunal as the representative of such party as provided under section 432 of the Companies Act 2013;

Section 432 of Companies Act, 2013 says about;

A party to any proceeding or appeal before the Tribunal or the Appellate Tribunal, as the case may be, may either appear in person or Authorise one or more;

·        Chartered Accountants or;

·        Company Secretaries or;

·        Cost accountants or;

·        Legal practitioners or any other person to present his case before the Tribunal or the Appellate Tribunal, as the case may be.

Bench: - Means a Bench of the Tribunal constituted under section 419 of the Act and includes Circuit Benches constituted by the President with prior approval of the Central Government to sit at such other geographical locations as may be necessary having regard to requirements;

Section 419 says about;

(1) There shall be constituted such number of Benches of the Tribunal, as may, by notification, be specified by the Central Government.

        Ministry of Corporate Affairs wide notification dated 01^st Day of July, 2016 Initially Constitute  eleven Benches, Two at New Delhi and one each at Ahmedabad, Allahabad, Bengluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata and Mumbai.

(2) The Principal Bench of the Tribunal shall be at New Delhi which shall be presided over by the President of the Tribunal.

(3) The powers of the Tribunal shall be exercisable by Benches consisting of two Members out of whom one shall be a Judicial Member and the other shall be a Technical Member:

Provided that it shall be competent for the Members of the Tribunal authorised in this behalf to function as a Bench consisting of a single Judicial Member and exercise the powers of the Tribunal in respect of such class of cases or such matters pertaining to such class of cases, as the President may, by general or special order, specify:

Provided further that if at any stage of the hearing of any such case or matter, it appears to the Member that the case or matter is of such a nature that it ought to be heard by a Bench consisting of two Members, the case or matter may be transferred by the President, or, as the case may be, referred to him for transfer, to such Bench as the President may deem fit.

Central Registry - Means the registry in which all the applications or petitions and documents are received by the Registrar for allocation to the concerned Bench of the Tribunal for disposal;

Creditor - Means any person to whom a debt is owed;

Interlocutory Application - Means an application in any appeal or original petition on proceeding already instituted in the Tribunal, but not being a proceeding for execution of the order or direction of Tribunal:

Party - Means a person who prefers an appeal or application or petition before the Tribunal and includes respondent or any person interested in the said appeal or application or petition including the Registrar of Companies or the Regional Director or Central Government or State Government or official liquidator and any person who has a right under the Act, or the Reserve Bank of India Act 1934 (2 of 1934) to make suggestions or submissions or objections or reply;

Petition - Means a petition or an application or an appeal or a complaint in pursuance of which any proceeding is commenced before the Tribunal;

Person Interested - Means a shareholder, creditor, employee, transferee company and other company concerned in relation to the term or context referred to in the relevant provisions of the Act or any person aggrieved by any order or action of any company or its directors;

Pleadings - Means and includes application including interlocutory application, petition, appeal, revision, reply, rejoinder, statement, counter claim, additional statement supplementing the original application and reply statement under these rules and as may be permitted by the Tribunal;

Secured Creditor - Means a creditor in whose favour a security interest is created;

Security Interest - Means right, title or interest or a claim to property, created in favour of, or provided for a secured creditor by a transaction which secures payment or performance of an obligation and includes mortgage, charge, hypothecation, assignment and encumbrance or any other agreement or arrangement securing payment or performance of any obligation of any person:

Forms - The forms annexed as Annexure 'A' to these rules with such modifications or variations as the circumstances of each case may require shall be used for the purpose mentioned therein and where no form is prescribed to cover a contingency, a form as may be approved by the Registrar, shall be used.

Annexure 'A'

Form No.	Purpose of form
NCLT-1	General Heading for proceedings
NCLT-2	Notice of Admission
NCLT-3	Notice of Motion
NCLT-3A	Advertisement detailing petition
NCLT-3B	Individual Notice of petition/application to creditors, members, etc
NCLT-4	General Heading for proceedings
NCLT-5	Notice
NCLT-6	General Affidavit Verifying Petition
NCLT-7	Affidavit by way evidence
NCLT-8	Application for Execution of Order under clause (3) of section 424 of the Act with reference to a Decree
NCLT-9	General Heading for proceedings
NCLT-10	Application for the Registration of a intern of authorised representative under these rules
NCLT-11	Application by Depositor under section  73(4) or 76(2) or by Company u/s 74(2) or by debenture holder or debenture trustee under section 71(10) of the act or section 45QA of the Reserve Bank of India Act, 1934
NCLT-12	Memorandum of appearance
NCLT-13	Public Notice of petition under section 245
NCLT-14	Before the National Company Law Tribunal
NCLT-15	Before the National Company Law Tribunal (New Delhi)
NCLT-16	Before the National Company Law Tribunal (New Delhi)
NCLT-17	Certificate of Discharge
NCLT-18	Before the National Company Law Tribunal

Fee - Means the amount payable in pursuance of the provisions of the Act and these rules for any petition or application or interlocutory application or a document or for certified copy of document or order of the Tribunal or such other paper as may be specified in Schedule of Fees to these rules and includes any modifications as may be made thereto or any fee as prescribed for filing of documents to the Tribunal by these rules;

Schedules of Fee

Section of the Companies Act, 2013	Nature of application/petition	Fees
Sec 2 (41)	Application for change in financial year	5,000/-
Sec 7 (7)	Application to Tribunal where Company has been incorporated by furnishing false or incorrect info or by any fraudulent action	5,000/-
Sec 14 (1)	Conversion of public company into a private company	5,000/-
Sec 55 (3)	Application for issue further redeemable preference shares	5,000/-
Sec 58 (3)	Appeal against refusal of registration of shares	1,000/-
Sec 59	Appeal for rectification of register of member	1,000/-
Sec 62 (4)	Appeal against order of Govt. fixing terms and conditions for conversion of debentures and shares	5,000/-
Sec 71 (9)	Petition by Debenture-trustees	2,000/-
Sec 71 (10)	Application in the event of failure of redeeming of debentures	1,000/-
Sec 73 (4)	Application by deposition for repayment of deposit or interest	500/-
Sec 74 (2)	Application to allow further time as considered reasonable to the company to repay deposits	5,000/-
Sec 97 (1)	Application for calling of Annual General Meeting	1,000/-
Sec 98 (1)	Application for calling of General Meeting of company other than annual general meeting	1,000/-
Sec 119 (4)	Petition to pass an order directing immediate inspection of minute's books or directing a copy thereof be sent forthwith to person requiring it	500/-
Sec 130 (1)	Application for re-opening of books of account, if made by any person other than Central Government, Income Tax authorities, SEBI or any other statutory regulatory body or authority	5,000/-
Sec 131 (1)	Application by company for voluntary revision of financial statement on Board's report	5,000/-
Sec 140 (4)	Application for not sending the copy of representation of auditor to the members	1,000/-
Sec 140 (5)	Application by any other person concerned for change of auditors	2,000/-
Sec 169 (4)	Application for not sending copies of representation	1,000/-
Sec 213	Application to Tribunal for investigation into company affairs	5,000/-
Sec 218 (1)	Application for approval for action proposed against employee	1,000/-
Sec 222 (1)	Application for imposition of restrictions on securities	2,500/-
Sec 241 (1)	Application in cases of oppression and mismanagement	10,000/-
Sec 242 (4)	Application for regulating the conduct of company	2,500/-
Sec 243 (1)(b)	Application for appointment as Managing Director	5,000/-
Sec 244(1)	Application for waiver of requirement specified in clause (a) or (b) of Sec 244 (1)	2,500/-
Sec 245	Class action suits	5,000/-
Sec 441	Application for compounding of certain offences	1,000/-
Sec 421	Appeals to NCLAT	5,000/-
	Application under any provisions specifically not mentioned above	1000/-
	Fee for obtaining certified true copy of Final order passed to parties other than the concerned parties	5/- per page

Sitting of the Tribunal, - The Tribunal shall hold its sittings either at it’s headquarter or at such other place falling within its territorial jurisdiction as it may consider convenient.

Sitting Hours. - The sitting hours of the Tribunal shall ordinarily be from 10:30 AM to 1:00 PM and 2:00 P.M, to 4:30 PM, subject to any order made by the President,

Working hours. - (1) except on Saturdays, Sundays and other National Holiday, the office of the Tribunal shall remain open on all working days from 09.30 A.M. to 6.00 P.M.

                              (2) The Filing Counter of the Registry shall be open on all working days from 10.30 AM to 5.00 P.M.

Calendar. - The calendar of days of working of Tribunal in a year shall be as decided by the President of the Tribunal.

Disclaimer:  The entire definitions and contents of above document have been prepared on the basis of National Company Law Tribunal Rules, 2016.  Whereas deep care has been taken by author to ensure the correctness and completeness of the information provided

                    This is nothing but a knowledge sharing initiative by author and author do not intend to accost any business or profession.

Sanoj Kumar

Mob No. 9310245629