The Ministry of Corporate Affairs Government proposes to set up National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) which will replace Company Law Board, Board for Industrial and Financial Reconstruction and Appellate Authority for Industrial and Financial Reconstruction.
It may be noted that provisions regarding constitution of NCLT and NCLAT were incorporated in the Companies (Second Amendment) Act, 2002. The Act was, however, challenged in the Madras High Court. The matter was finally decided by the Supreme Court vide their judgment dated 11.5.2010. The revised Companies Bill, 2011introduced in the winter session of Parliament also incorporates the guidelines provided by the Supreme Court in their said judgment.