Shift of jurisdiction from high court
Traditionally High Court exercised company jurisdiction for years. Companies Act 1956 gave wide powers and Constitutional Courts developed principles. With NCLT, most powers shift from HC to Tribunal. There is also bar on civil courts. This is big change. Madras HC and SC said it is permissible only if independence and quality are preserved. Otherwise it violates basic structure. So challenge for MCA is not just constitution, but making NCLT as effective as HC.
Experience with clb must guide nclt
CLB was meant to be specialist forum but many felt it did not deliver. Why? No full assessment was done. Was it procedure, manpower, or lack of enforcement? If NCLT gets same powers with different wording, result may be same. Ministry must answer why CLB failed before expecting NCLT to succeed. Corporate world will watch closely.
Nine issues to address now
Why bring Bill when SC matter was pending?
Why was CLB not effective?
Any complete assessment of CLB failure?
Is MCA convinced CLB met object?
How is NCLT different when powers wording is similar?
How will NCLT orders be implemented when CLB orders were violated?
What about contempt power for NCLT?
Will single Appellate Tribunal in Delhi cause hardship?
How to deal with fictitious ROC filings under MCA scheme?
These are not academic. They affect daily corporate litigation.
Icls issue and expertise debate
MCA wants ICLS members as presiding officers citing talent. No doubt on capability. But SC judgment emphasized judicial member and independence. Balance is needed. Expertise in company law is important, but adjudicatory independence is non-negotiable. Any review must respect SC guidelines.
Conclusion
National company law tribunal constitution issues 2010 are at turning point. SC judgment is welcome. But real test is implementation. MCA must redraft Bill, address 9 issues above, ensure contempt power, decentralize appellate forum, and learn from CLB. Only then NCLT will give effective and speedy justice to companies and shareholders.
