The Corporate Affairs Minister’s Take on Status of Pendency of Cases in NCLT
The Minister of State for Corporate and Law & Justice, Mr. P.P. Chaudhary gave the status of the cases in the National Company Law Tribunal in the Rajya Sabha.
The Company Law Board set under Section 10E of Companies Act, 1956 under Section was dissolved when Companies Act, 2013 was enforced. Under Section 408 of Companies Act, 2013, the Central Government established National Company law Tribunal [NCLT].
The minister asserted that a total of 9,073 cases are under consideration in NCLT as on 31.01.2018, including 1,630 cases of Merger and Amalgamation, 2,511 cases of insolvency and 4,932 cases under other sections of Companies Act.As on 12.03.2018, only one case under section 55(3) of the Companies Act, 2013 is pending before the NCLT.
The Section 55 of Companies Act, 2013 deals with issue and redemption of preference shares.The clause (3) of Section 55 with the approval of Tribunal for further issue of redeemable preference shares equal to the amount due in the case where the company is not able to redeem the previously issued redeemable preference shares.
He also said, “all efforts are being taken to dispose off the cases as per the time limits laid down in the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016”.
In order to redress and dispose off the matters within the prescribed time period as provided by the legislations, e-governance has been adopted. He said, “systems and procedures including electronic/Information Technology systems are being used on extensive basis to ensure quick disposal of cases”.
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