5 July, 2017
In a significant move by the government to streamline and improve the functioning of tribunals in India, COMPAT has been merged with the National Company Law Appellate Tribunal (‘NCLAT’). This amendment was brought about under the provisions of Part XIV of Chapter VI of the Finance Act, 2017. The appellate function provided for in the Act has been transferred to NCLAT and the new appellate authority has already commenced hearing of competition law matters this month. Please see below some observations made regarding the working of NCLAT:
- Constitution of NCLAT: In terms of the constitution of the bench there are two members of NCLAT – Hon’ble Justice Shri S.J. Mukhopadhaya (Chairperson) and Shri Balvinder Singh (Technical Member). As of now there is no member from COMPAT;
- Appeals in NCLAT: As per Section 422 of the Companies Act, 2013, NCLAT is ideally expected to conclude matters within a time span of three months with an exten- sion of not more than 90 days under justifiable reasons. According to the NCLAT rules, an impugned order should be enclosed after the appeal;
- Written Submissions: The sitting Bench has stated that they are not well versed with the Act and its ancillary rules. Therefore, they have sought brief written sub- missions from the counsels of the respective matters, prior to their next date of hearing. The Bench has also indicated that the submissions for the transferred cas- es from COMPAT should be short, crisp and a maximum of two to three pages long;
- Court Fees: The Bench has stated that the court fee has to be paid for every single order challenged before NCLAT, irrespective of the fact that a common appeal has been preferred with respect to all those orders; and
- Transferred Cases – In matters where the arguments were heard but a judgment was not pronounced by COMPAT, NCLAT will hear those matters afresh on merits.
For further information, please contact:
Zia Mody, Partner, AZB & Partners
zia.mody@azbpartners.com
