SC clears way for tribunal to speed up corporate cases

In a landmark judgment, a five-judge constitution bench of the Supreme Court on Tuesday upheld the legality of the Companies (Second Amendment) Act, 2002, providing for the establishment of the National Company Law Tribunal and National Company Law Appellate Tribunal to deal exclusively with the company cases for their speedy disposal. Barring the judicial review power under Articles 226 and 227 of the Constitution, almost all jurisdictions exercised by the High Courts with regard to company matters would now be transferred to the proposed Tribunal and the Appellate Tribunal. All company-related matters pending with the Company Law Board, and the Board for Industrial and Financial Reconstruction (BIFR) will also be transferred to the NCLT and the NCLAT.