The NCLT: India's Most Consequential Corporate Tribunal

The National Company Law Tribunal, constituted in 2016, absorbed the jurisdiction of the Company Law Board, the Board for Industrial and Financial Reconstruction, and part of the winding-up jurisdiction of the High Courts. It is now the primary forum for corporate insolvency under the IBC, company law disputes under the Companies Act 2013, and a growing body of regulatory and quasi-judicial work that touches virtually every aspect of Indian corporate life.

Appearing effectively before the NCLT requires a combination that few practitioners genuinely have: deep knowledge of both insolvency law and company law, familiarity with the tribunal’s procedural expectations, and close tracking of the rapidly evolving jurisprudence from NCLAT and the Supreme Court of India.

August Attorneys LLP, led by Mr. Shailendra Singh, has been practising before the NCLT Principal Bench since the tribunal’s constitution. Mr. Singh has handled insolvency proceedings with aggregate claims exceeding ₹500 crores — a track record that reflects the firm’s standing in this forum and its experience with the full complexity of large-scale CIRP proceedings.

NCLT Practice Areas

1

Insolvency and Bankruptcy Code — CIRP

Applications by financial creditors (Section 7), operational creditors (Section 9), and corporate debtors (Section 10) for initiation of CIRP. Representing creditors in Committee of Creditors proceedings, advising on evaluation of resolution plans, and appearing at contested hearings at every stage of the process — from admission through to plan approval or liquidation.
2

Resolution Applicants

Advising companies and investors submitting resolution plans — on plan structuring, CoC dynamics, NCLT approval requirements, and the legal position if a plan is rejected or modified. For international investors, we coordinate Indian law advice with our overseas alliances to support cross-border acquisition of distressed Indian assets.
3

Liquidation Proceedings

Advising creditors on their claims in liquidation, the application of the Section 53 waterfall, and challenge proceedings where the liquidator's decisions are disputed. Representing parties in contested liquidation matters and applications against liquidators for directions from the NCLT.
4

Oppression and Mismanagement

Petitions under Sections 241-244 of the Companies Act, 2013 — seeking relief for shareholders where the majority is conducting the company's affairs in a manner prejudicial to their interests or to the company's interests. The NCLT has wide remedial powers in oppression matters and can restructure share capital, change management, and award compensation.
5

Winding Up and Company Restoration

Petitions for winding up on just and equitable grounds and for failure to pay debts, and applications under Section 252 for restoration of companies struck off by the Registrar of Companies. We advise on the available grounds and the realistic prospects of success before proceedings are initiated.
6

Scheme of Arrangement

Applications under Sections 230-232 for court-sanctioned mergers, demergers, and compromises. We advise on scheme structuring, shareholder and creditor meeting requirements, and NCLT approval hearings — including representation of parties objecting to a proposed scheme.

NCLAT and Supreme Court Appeals

Decisions of the NCLT are appealable to the National Company Law Appellate Tribunal (NCLAT) and — on questions of law — to the Supreme Court of India. Mr. Shailendra Singh practises at all three levels, ensuring that the appellate strategy is consistent with and builds on the record created at the tribunal level.

In rapidly evolving IBC jurisprudence, the ability to track and anticipate Supreme Court developments is not a luxury — it’s essential to effective representation. The firm’s Supreme Court practice gives it direct visibility into how the apex court is interpreting the IBC at any given time.

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What is the minimum default threshold for initiating CIRP?

The current threshold is ₹1 crore. This was revised upward from ₹1 lakh in March 2020 and has remained at ₹1 crore since then. A single default of ₹1 crore or an aggregate of defaults reaching ₹1 crore from a single creditor can form the basis of an application.

Yes, but the grounds are limited. An approved resolution plan can be challenged before the NCLAT and the Supreme Court on grounds such as violation of mandatory IBC provisions, non-compliance with Section 30(2) conditions, or violation of fundamental rights. The threshold for successfully challenging an approved plan is high.

The moratorium is triggered on admission of the CIRP application and stays all pending suits, recovery proceedings, and enforcement actions against the corporate debtor. It also prevents transfer, encumbrance, or disposal of the corporate debtor’s assets. Certain actions — including criminal proceedings and guarantor liability — fall outside the moratorium’s scope.

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