Facing an NCLT matter? Talk to a lawyer first.

The National Company Law Tribunal (NCLT) is the first forum that hears and decides company-law disputes and insolvency cases of companies and LLPs. The National Company Law Appellate Tribunal (NCLAT) hears appeals against NCLT orders, on both law and facts. NCLAT orders can then be appealed to the Supreme Court on a question of law. Most matters therefore start at the NCLT and move to the NCLAT only if a party challenges the order.

You have 10 days from receipt to either pay the amount or reply with evidence of a genuine dispute that existed before the notice was received, such as emails, letters or a pending suit or arbitration. If you do neither, the operational creditor can file a Section 9 petition and the NCLT may admit it. Do not ignore the notice; collect your contracts, invoices and correspondence and speak to a lawyer immediately.

Generally no, because a company’s liability is separate from its directors. Directors and promoters become personally liable where they have signed personal guarantees for company loans, which creditors can enforce separately. The NCLT can also order directors to contribute where it finds fraudulent or wrongful trading under Section 66 of the IBC.

The IBC sets 330 days, including extensions and litigation, for the insolvency resolution process. In practice, cases currently take about 713 days on average, because the NCLT has a backlog of roughly 30,600 cases. Company-law petitions such as oppression or restoration can take from a few months to three years, depending on the bench and how contested the matter is.

Insolvency petitions, shareholder disputes, restorations and appeals. We help companies, creditors and founders act before deadlines run out. Our network of advocates and senior counsel across India means your matter reaches the right forum, whether that is the NCLT, NCLAT, a High Court or the Supreme Court, with the right counsel arguing it.

You apply to the NCLT under Section 252 of the Companies Act, 2013, showing that the company was carrying on business or that the strike-off was not justified. The company, a member, a creditor or a workman can apply, and the time limit depends on who applies. Once restored, all pending annual returns and financial statements must be filed with the applicable fees.

For orders under the IBC, the appeal must be filed within 30 days, with up to 15 more days if you show sufficient cause. For orders under the Companies Act, the limit is 45 days, extendable by up to 45 more days. The time generally runs from the date of the order or when a copy is available, so start preparing the appeal as soon as the order is pronounced.

Yes. Your first consultation with a bwise360 lawyer is free and carries no obligation. We review your notice, petition or order, explain your options and deadlines, and give you an upfront estimate if you decide to go ahead.

For companies and LLPs, an insolvency petition under IBC Sections 7, 9 or 10 can be filed only where the default is ₹1 crore or more. A financial creditor such as a bank or NBFC files under Section 7, an operational creditor such as a vendor files under Section 9, and the company itself can apply under Section 10. For pre-packaged insolvency of MSMEs, the threshold is ₹10 lakh.

On admission, a moratorium under Section 14 begins, which stops most suits, recovery action and enforcement of security against the company. The board of directors’ powers are suspended and an interim resolution professional takes over management. Creditors file claims, a committee of creditors is formed, and resolution plans are invited. If no plan is approved within the time allowed, the company may go into liquidation.

Yes. Before the NCLT admits the petition, the parties can settle and the creditor can withdraw it. After admission, the case can be withdrawn under Section 12A only with the approval of 90% of the committee of creditors by voting share. Settling early is usually faster, cheaper and keeps the founders in control of the company.