Question

The National Company Law Tribunal is constituted under _________ of the Companies Act, 2013.

• A. Section 406
• B. Section 407
• C. Section 408
• D. Section 409

Hint:

Do not confuse Section 408 (NCLT) with Section 410, which provides for the constitution of the National Company Law Appellate Tribunal (NCLAT).

Answer 1

The Correct Option is C

Step 1: Understanding the Question:
The question asks for the specific section of the Companies Act, 2013, under which the National Company Law Tribunal (NCLT) is constituted.

Step 2: Detailed Explanation:

• National Company Law Tribunal (NCLT): This is a quasi-judicial body in India that adjudicates issues relating to Indian companies.

• Section 408 of the Companies Act, 2013: This section empowers the Central Government to constitute, by notification, a Tribunal to be known as the National Company Law Tribunal to exercise and discharge such powers and functions as are, or may be, conferred on it by or under this Act.

• Other Sections:
Section 406 deals with the power to declare certain companies as Nidhis.
Section 407 provides definitions for Chapter XXVII (such as Chairperson, Judicial Member, etc.).
Section 409 sets out the qualification requirements for the President and Members of the Tribunal.

Step 3: Final Answer:
The National Company Law Tribunal is constituted under Section 408 (Option C).