Company law tribunal issue to get a shake-up

The company affairs ministry will take up the issue of the stalemate over setting up of the National Company Law Tribunal with the law ministry.

"The tribunal has been stuck in the court for over a year. This is delaying the overhaul of the legal system related to corporate laws. We are taking up the matter with the law ministry to ensure that it is set up at the earliest," Company Affairs Minister Prem Chand Gupta told Business Standard.

Work on establishing the tribunal had come to a halt after its formation was challenged in the Supreme Court on the grounds that the tribunal's powers encroached upon the power of the high courts.

The government had filed affidavits with the Supreme Court to ensure that a serving or a retired judge became the president of the tribunal.

"The reforms related to liquidation process can happen only after the NCLT is set up," Gupta said. Once the NCLT was formed, the government would seek professional liquidators' help to improve the realisation out of liquidation process and cut down on time.