Benches of the National Company Law Tribunal (NCLT) should not get into questioning a company s default once it is established by the creditors, particularly financial creditors, for admission to the corporate insolvency process.
This is one of the key themes of the draft guidelines for the NCLT, which are being finalised by the Ministry of Corporate Affairs (MCA), a senior official said.
According to the official, while the company law matters could involve the principle of natural justice and justify extended proceedings to hear all parties concerned, the same does not apply to the Insolvency and Bankruptcy Code (IBC) proceedings.
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NCLAT Chennai Bench to start functioning from January 25
January 24, 2021
Hearings to be held in virtual mode
The Chennai Bench of National Company Law Appellate Tribunal (NCLAT) will start functioning from Monday. To begin with, the hearing before this Bench will be in virtual mode in tune with the current pandemic times.
From January 25, all fresh appeals against the orders of the Benches of the National Company Law Tribunal having jurisdiction in respect of States of Karnataka, Tamil Nadu, Kerala, Andhra Pradesh and Telangana and Union Territories of Lakshadweep and Puducherry would have to be made before the Chennai Bench of NCLAT, informed sources said.