Centre appoints new members to NCLT, ITAT

Context:

The government has appointed 31 people as judicial, technical and accountant members at the NCLT and the ITAT, amid the Supreme Court flagging concerns about vacancies in various tribunals.

Relevance:

GS-III: Indian Economy (Capital Market, Statutory Bodies)

Dimensions of the Article:

1. ITAT
2. NCLT
3. NCLAT
4. Differences between NCLT and NCLAT

ITAT

• India’s Income Tax Appellate Tribunal (ITAT) was set up in 1941, and it was the first experiment in tribunalization in the history of India.
• It is second appellate authority under the direct taxes and first independent forum in its appellate hierarchy.
• The orders passed by the ITAT can be subjected to appellate challenge, on substantial questions of law, before the respective High Court.
• With a view to ensure highest degree of independence of the ITAT, it functions under the Department of Legal Affairs in the Ministry of Law and Justice, and is KEPT AWAY FROM any kind of control by the Ministry of Finance.
• The appeals before the Income Tax Appellate Tribunal are generally heard by a division bench- consisting of one judicial member and one accountant member.
• In case of conflict of opinions by the division benches on the issues involved in an appeal, the appeals are sometimes heard by the special benches consisting of three of more members- at least one of which must be a judicial member and at least one of which must be an accountant member.
• The Indian Income Tax Appellate Tribunal is considered to be a very successful experiment in tribunalization and is often cited to justify more steps in this direction.

NCLT

• The National Company Law Tribunal is a quasi-judicial body in India that adjudicates issues relating to Indian companies.
• The tribunal was established under the Companies Act 2013 and was constituted on 1 June 2016 by the government of India. Hence, NCLT is a Statutory Body.
• All proceedings under the Companies Act, including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies shall be disposed of by the National Company Law Tribunal.
• The National Company Law Tribunal is the adjudicating authority for insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.
• No criminal court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Tribunal or the Appellate Tribunal is empowered to determine by or under this Act or any other law for the time being in force and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or any other law for the time being in force, by the Tribunal or the Appellate Tribunal.

NCLAT

• The National Company Law Appellate Tribunal (NCLAT) is a tribunal which was formed by the Central Government of India under Section 410 of the Companies Act, 2013. Hence, NCLAT is also a Statutory Body.
• The tribunal is responsible for hearing appeals from the orders of National Company Law Tribunal(s) (NCLT), starting on 1 June, 2016.
• The tribunal also hears appeals from orders issued by the Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC.
• It also hears appeals from any direction issued, decision made, or order passed by the Competition Commission of India.

Differences between NCLT and NCLAT

• NCLT makes the judgement on the insolvency resolution proceedings. NCLAT makes judgement on the decisions made by the NCLT.
• NCLT is the primary Tribunal and NCLAT is the appellate tribunal.
• NCLT analyzes the evidences that are presented by the insolvent debtor or their creditors. NCLAT analyzes the decisions that are made by the NCLT.

-Source: The Hindu