REVISING CLAIMS ONCE RESOLUTION PLAN APPROVED BY NCLT NOT POSSIBLE
- May 31, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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REVISING CLAIMS ONCE RESOLUTION PLAN APPROVED BY NCLT NOT POSSIBLE
Subject : Governance
Context : The Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) has ruled that once a resolution plan for a debt-laden corporate entity is approved, even government-bodies like the Employees Provident Fund Organisation (EPFO) cannot revise their claims.
Concept :
About NCLT:
- It is a statutory body constituted under the section 408 of the Companies Act, 2013.
- The current NCLT traces its formation to the recommendations of the Justice Eradi Committee which was set up by Central Government in the year 1998
- It is a quasi-judicial authority incorporated for dealing with corporate disputes that are of civil nature arising under the Companies Act.
- It has power to regulate its own procedures.
- The NCLT composition is of the President and other Judicial and Technical members, to exercise and discharge powers and functions as prescribed by the Act or any other power delegated to them by way of any other enactment or a Notification by Ministry Of Corporate Affairs.
- Appeals against the order of the NCLT will go to NCLAT, exclusively dedicated for this purpose.
It has been given jurisdiction over:
- Board for Industrial and Financial Reconstruction. (“BIFR”)
- The Appellate Authority for Industrial and Financial Reconstruction. (“AAIFR”)
- Jurisdiction and powers relating to winding up restructuring and other such provisions, vested in the High Courts.
- Company Law Board (“CLB”).