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Posted Date: 25-03-2020 Posted By: user

NCLT or National Company Law Tribunal is a quasi-judicial authority which was created under the Companies Act 2013. The purpose of it is to handle corporate civil disputes.

NCLT has equal powers as a court of law or judge, which objectively determines facts and decides cases with the principles of natural law and justice. It concludes in the form of orders. The orders become a remedy to a situation and correct incorrect legal penalties or costs. National Company Law Tribunal affects the duties, privileges, and legal rights of the affected parties.

Though strict judicial procedures and rules do not bind parties, it follows the principles of natural justice to decide the cases.

National Company Law Appellate Tribunal or NCLAT is an appellate tribunal. It is an authority which deals with appeals that arise out of the decisions of the tribunal. The purpose of it is to correct the errors made by the tribunal.

NCLAT is an intermediate appellate forum. According to the procedure book, it is possible to challenge the decisions of the appellate tribunal in the Supreme Court about loan settlement. Any party which is not satisfied with any order released by the NCLAT can file an appeal to contest the decision.

The appellate tribunal reviews the decision of the tribunal, and it has powers to modify, confirm, or set aside the same.

Prime difference between the two

NCLT has primary jurisdiction, and NCLAT has appellate jurisdiction. NCLAT is a higher forum than NCLT.

NCLT Mumbai is presented with the witness and pieces of evidence to make the decision. NCLAT reviews the decisions taken by NCLT and examines it from the point of view of facts and law.

The primary task of NCLT is to find facts and collect pieces of evidence. NCLAT, on the other hand, decides cases based on witnesses and evidence already received by the tribunal.