NCLT Matters

The NCLT's powers extend to the following areas of dispute:

Action as a group: Frauds are the subject of class action lawsuits. Any firm that is registered under the Indian Companies Act and steals or defrauds investors is subject to NCLT penalties.

Transfer of Shares: If a firm fails to register a transfer of shares or refuses to transfer shares, the person who has suffered a loss can file a complaint with the NCLT within two months to seek justice. Oppression and Mismanagement: The NCLT empowers citizens to seek redress for any sort of corporate abuse, whether it occurred in the past or is occurring now. If someone believes that a company's operations are biased, favouring certain parties or persons while oppressing others, they can file a complaint with the NCLT, which will investigate the company's operations and guarantee that justice is served.

Compounding of Offenses: Compounding provisions under the Companies Act 2013 now fall under the jurisdiction of the NCLT rather than the Company Law Board. NCLT approves all compounding proceedings that exceed the stipulated monetary limit. Deregistration of

Corporations: The NCLT has the authority to deregister and dissolve companies that have been registered fraudulently or illegally. If the NCLT judges it essential, it can also investigate any procedural irregularities in a company's registration. Financial Statements Revision: The Companies Act of 1956 has been used to detect falsification of record books on various occasions. Sections 447 and 448 of the Companies Act 2013 have been inserted to guarantee that such acts are now subject to the NCLT's jurisdiction.

Deposits: Depositors who have been wronged have the opportunity to file a class action lawsuit to seek retribution for the company's conduct or omissions that have infringed on their rights. The NCLT now has the aforementioned authorities. Investigation: The NCLT has a number of investigative authorities.

The following are the tribunal's most important powers:

Power to order an investigation: Under the Company Act of 2013, only 100 members are required to apply for an investigation into the affairs of a company; however, anyone who is able to convince the tribunal that such a situation exists for initiating investigation proceedings is given the power to apply for an investigation. A probe ordered by the NCLT can take place in India or anyplace else in the world. Power to impose securities restrictions: Previously, securities restrictions could only be placed on shares. The tribunal can now impose limits on any firm security.

Power to probe company ownership: The tribunal has the authority to conduct investigations into any firm's ownership. Power to freeze a company's assets: The tribunal has the authority to freeze a company's assets, which cannot be used while the company is being investigated. Conversion of a public company to a private company: This conversion requires NCLT approval. The tribunal may, at its discretion, impose certain conditions before granting clearance.

Change in Financial Year: The NCLT has the authority to change the financial year of Indian firms. General Meetings Convened by the Tribunal: The NCLT has the authority to call a general meeting (AGM or EGOM). NCLT decisions can be challenged in the National Company Law Appellate Tribunal (NCLAT). The NCLAT's decisions can be appealed to the Honourable Supreme Court of India.