NCLT
National company law tribunal

File NCLT complaint about any builder dispute

What is NCLT?

• National Companies Law Tribunal or famously known as NCLT has been a very strong instrument revolutionizing the market since the year 2016.
• Whereas, the Insolvency and Bankruptcy Board of India is the regulatory body under which it operates after its constitution under Section 408 of the Companies Act, 2013.
• The punitive actions are based on complaints/petitions by litigants for violations by the companies against others. Moreover, the tribunal displays an overriding effect upon other statues due to its imposing nature.
• The tribunal has the capacity of putting estoppel on concurrent matters involving the same litigants.

NCLT can be approached for:

• Restoration of DIN Number.
• Revival of companies
• contract disputes.

It also includes Individuals.

What is the categorization of litigants before the Tribunal ?

Financial Creditor :

It means any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to.

What is Financial debt? It means a debt along with interest, if any, which is disbursed against the consideration for the time value of money and includes:

• cash obtained against the payment of interest
• any money raised by acceptance under any acceptance credit facility or its de-materialized equivalent
• any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument
• the amount of any liability in respect of any lease or hire purchase contract which is deemed as a finance or capital lease under the Indian Accounting Standards or such other accounting standards as may be prescribed
• receivables sold or discounted other than any receivables sold on non- recourse basis
• any money raised under any other transaction, including any forward sale or purchase agreement, having the commercial effect of a borrowing
• any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price and for calculating the value of any derivative transaction, only the market value of such transaction shall be taken into account
• any counter-indemnity obligation in respect of a guarantee, indemnity, bond, documentary letter of credit or any other instrument issued by a bank or financial institution
• the amount of any liability in respect of any of the guarantee or indemnity for any of the items referred to in sub-clauses (a) to (h) of this clause.

Operational Creditor :

It means a person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred.

“What is operational debt?” It means a claim in respect of the provision of goods or services including employment or a debt in respect of the repayment of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authority.

Corporate Entity Itself :

What is the procedure adopted by a litigant in the process?

• Legal Notice to be sent to the debtor.
• The debtor has to reply within a stipulated period of 14 days.
• Upon such a failure to respond, the creditor can approach the Tribunal.
• Application for initiation of the Corporate Insolvency Resolution Process (CIRP) by the creditor.