NATIONAL COMPANY LAW TRIBUNAL (NCLT)
Before 2016 the matters related to disputes between companies relating to civil matters used to be adjudicate by the company law board, BIFR, AAFIR and high court. In 2016 these bodies were abolished and NCLT was established with an aim to substantially reduce the workload of high courts and speedy and timely disposal of cases.
Advocates or legal professionals were needed to for the filing and arguing of the matter on behalf of the companies. However, after the appointment of NCLT professionals like CA, CS (professionals of a companies) can now also argue the matter on behalf of companies in the tribunal. This extended the scope of CA, CS professionals.
National Company Law Tribunal (NCLT) is a quasi-judicial body which was set up to resolve the disputes which are arising in Indian Companies. It was established by the Central Government in 2016 under Companies Act 2013.
The functions of NCLT includes correcting a corporate mistake, impose penalties, and change the rights, duties, obligations, and privileges of the parties involved. The NCLT acts as same manner as of a regular court of law and is ought to determine each case in line with natural justice principles.
The government planned for the formation of NCLT’s in every state but there are 10 NCLT’s and 1 NCLAT as of now.
Its members are chosen by Secretary of the Ministry of Corporate Affairs (MCA) committee: -
• President - Must have served as a High Court Judge for at least 5 years and should age between 50 – 67 years.
• Judicial Members - Must have served as a judge for at least 5 years or as a lawyer with at least 10 years of experience and should age between 50 – 65 years.
Note – Both president and judicial members serves for a maximum tenure of 5 years but can also be reappointed for one more time.
Filling an application - A firm or an individual is free to lodge a petition to the NCLT in case of oppression, fraud, loss incurred by non-performance of contract, malpractice etc. It is provided that the complaint is filed within two months of the suffered loss as a result of malpractice.
Even If someone believes that a company’s operations are biased in favour of certain parties while oppressing others, he or she has the right to file a complaint with the Tribunal. Also, urge that the company be investigated in order to ensure that all people involved are treated fairly.
Deregistration - The tribunal has the authority to deregister any company that obtained its status through fallacious or illegal means.
Investigation - If 100 members file an application against a firm, the Tribunal has the authority to request an investigation into its operations.
Any party can file an appeal in NCLAT against the order of NCLT. Also, the right to move to supreme court cannot be taken back by any provision.
Conclusion - NCLT and NCLAT were created to serve as a unified forum for adjudicating issues relating to company operations, where fast resolution will aid in the smooth operation of the economy. The Company Law Board’s previous regime failed tragically because it was incapable of adjudicating disputes in a timely and effective manner.
RERA, which is the Real Estate Regulatory Authority, was established under the Real Estate (Regulation and Development) Act, 2016, with the aim to regulate the real estate sector and address the issues faced by home buyers. It has the following objectives:
• To protect the interest of the allottees and ensure their responsibility
• To maintain transparency and reduce the chances of fraud
• To implement Pan-India standardization and bring about professionalism
• To enhance the flow of correct information between the home buyers and the sellers
• To impose greater responsibilities on both the builders and the investors
• To enhance the reliability of the sector and thereby increase confidence amongst the investors.
For long, home buyers complained that real estate transactions were lopsided and heavily in favour of the developers. In India, RERA and the government’s model code, aim to create a more equitable and fair transaction between the seller and the buyer of properties, especially in the primary market. RERA, it is hoped, will make real estate purchase simpler, by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act. The RERA will give the Indian real estate industry its first regulator. The Real Estate Act makes it mandatory for each state and union territory, to form its own regulator and frame the rules that will govern the functioning of the regulator.
The area of a property is often calculated in three different ways – carpet area, built-up area and super built-up area. Hence, when it comes to buying a property, this can leads to a lot of disconnect, between what you pay and what you actually get. Gautam Chatterjee, Maharashtra RERA chairman, explains that “It is now mandatory for the developers of all ongoing projects, to disclose the size of their apartments, on the basis on carpet area (i.e., the area within four walls). This includes usable spaces, like kitchen and toilets. This imparts clarity, which was not the case earlier.” According to the RERA, carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’. Rahul Shah, CEO of Sumer Group, points out that “As per the RERA guidelines, a builder must disclose the exact carpet area, so that a customer knows what he is paying for. However, the act does not make it mandatory for the builders, to sell a flat on the basis of carpet area.”