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Why the National Company Law Tribunal (NCLT) was Established in India | LawCrust

Why NCLT introduced & best NCLT Lawyer: Your 2025 Guide

Navigating India’s corporate legal landscape often feels like a maze. But since 2016, one institution has brought clarity: the National Company Law Tribunal (NCLT). Established under Section 408 of the Companies Act, 2013, the NCLT came into force on June 1, 2016. It replaced the old Company Law Board (CLB), the Board for Industrial and Financial Reconstruction (BIFR), and the winding-up powers of High Courts.

Understanding why the NCLT was introduced helps you see how modern corporate law works in India and why engaging the best NCLT lawyer matters in 2025.

Why NCLT introduced & best NCLT Lawyer

The NCLT was created to reform a slow, fragmented system. Its main goals were:

  • To Consolidate Jurisdictions and Reduce Overload

Before 2016, multiple bodies handled corporate matters. The High Courts dealt with winding-up petitions and mergers, while other agencies handled financial distress. This patchwork caused delays and inconsistent rulings. The NCLT brought all powers into one forum, giving businesses a unified and predictable process.

  • To Speed Up Dispute Resolution

High Courts faced huge backlogs, delaying corporate disputes for years. A dedicated tribunal now resolves cases faster. In fact, in FY 2024–25 alone, the NCLT approved resolution plans worth over ₹67,000 crore, showing its role in business revival.

  • To Ensure Expertise and Uniformity

NCLT benches include both judicial members (retired High Court judges) and technical members with expertise in finance and corporate law. This mix ensures decisions are not only legally sound but also commercially practical. Businesses benefit from consistent rulings across India.

  • To Strengthen Corporate Governance

The NCLT was introduced alongside the Insolvency and Bankruptcy Code (IBC) of 2016. Together, they improved India’s ease of doing business and boosted investor confidence. Companies now have a clear, predictable legal route for restructuring or insolvency.

Structure and Jurisdiction of the NCLT

The Principal Bench sits in New Delhi, while 16 regional benches cover cities like Mumbai, Kolkata, Chennai, and Bengaluru. With caseloads rising, the government plans to add 50 more members to the current strength of 60.

Its jurisdiction includes:

  • Mergers, demergers, and schemes of arrangement under the Companies Act.
  • Corporate insolvency and bankruptcy cases under the IBC.
  • Winding up of companies.
  • Shareholder disputes such as oppression and mismanagement.

Key Updates as of 2025

Recent reforms make the NCLT more powerful than ever:

  • Fast-Track Mergers – Expanded to include unlisted and subsidiary companies, saving time and cost.
  • IBC EvolutionSupreme Court reaffirmed the “fresh start” principle. In Jet Airways (India) Ltd v SBI (2024), it allowed group insolvency, setting a precedent for related companies.
  • Stricter Compliance Norms – The 2025 Companies Act amendments require detailed board report disclosures and add tiered penalties.

Why You Need the Best NCLT Lawyer

The NCLT’s powers affect businesses directly. You should consult a corporate lawyer if you are:

  • Planning a merger, demerger, or restructuring.
  • Facing insolvency under the IBC.
  • Involved in shareholder disputes.
  • Ensuring compliance with new 2025 rules.

A skilled lawyer helps you:

  • File error-free petitions.
  • Navigate bench-specific practices (critical in Mumbai).
  • Choose the right legal route, such as fast-track merger vs. full scheme.
  • Handle appeals at NCLAT or the Supreme Court.

Geo-Context: Mumbai Bench

If you operate in Mumbai or Maharashtra, you’ll likely deal with the Mumbai Bench of the NCLT. This bench is among the busiest in India. Lawyers familiar with its local registry, timelines, and practices can reduce friction and delays.

Common Challenges & Expert Tips

Even with reforms, businesses face hurdles:

  • Delays due to heavy caseloads – File documents early and in perfect order.
  • Complex compliance requirements – Use the MCA portal for accuracy and speed.
  • Jurisdiction errors – Always confirm the right bench before filing.

Don’t wait until a dispute escalates. Engaging a corporate lawyer near you early can save time, cost, and reputation.

Conclusion

The NCLT was introduced to consolidate corporate law, speed up cases, and strengthen governance. Since 2016, it has transformed India’s corporate dispute resolution system.

In 2025, with stricter rules and bigger stakes, having the best NCLT lawyer by your side is not optional it’s essential. Whether you’re restructuring, resolving insolvency, or protecting shareholder rights, expert legal support ensures you stay ahead.

About  LawCrust Legal Consultation.

LawCrust Legal Consulting, a subsidiary of LawCrust Global Consulting Ltd., is a trusted legal partner for NRIs and Indians across the globe. Backed by a team of over 70 expert lawyers and more than 25 empanelled law firms, we offer a wide range of Premium Legal Services both in India and internationally. Our expertise spans across legal financelitigation managementmatrimonial disputesproperty mattersestate planningheirship certificatesRERA, and builder-related legal issues.

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