Description

Why

• a uniquely placed tribunal, since it performs the dual role of a Tribunal under the Companies Act, 2013 and the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016.
• Within a short span of time since its formation in 2016, there are 14 benches of NCLT established in India,
• The demand for professionals who understand the proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) is slated to increase consistently, particularly in a downward trend economy, where generating revenue keeps becoming more and more difficult, resulting in payment defaults.
• The two main areas for practice under the IBC, from a legal perspective, are being an Insolvency Resolution Professional (IRP) and representing clients before the NCLT.
• Both the Institute of Company Secretaries of India and the Institute of Chartered Accountants of India have set up their own Institute of Insolvency Professionals (IIPs) to train their members to function as IRPs,
• Insolvency matters have seen a great surge and if you open the cause list of any of the NCLTs located throughout the country, you will see that section 7 / section 9 applications under the IBC kind of dominate the list.
• Oppression and mismanagement matters also tend to exist in all economic situations as difficult economic situations may result in creating rifts between family members or friends who may otherwise be working in harmony with each other and bring them to mismanagement.

Importance

• insolvency matters need to be dealt with, within a specific deadline.
• increased the avenues for CA / CS, but also junior lawyers,
• Matters under the jurisdiction of the NCLT in the Companies Act, 2013 include amalgamations and mergers,
• companies will be looking to get merged to reduce operational costs and acquirers may also be able to buy businesses for cheap, thus increasing the amalgamations and mergers.
• the investment will abound and there may be demergers to facilitate investment in specific businesses.
• Further, entities may look to amalgamate and increase their market share by synergising operations.
• In an upward-facing economy, where the valuation of a company is high and it is cash-rich, greed may raise its ugly head, thus resulting in one of the
• shareholder groups trying to oppress each other.
• oppression and mismanagement matters also tend to be higher.

Learn

• understand the facts and circumstances and apply the law and precedents to specific cases,
• securing justice for a shareholder who was unfairly treated and the payoff will be good since the value of shares involved can be high.