Role Of National Company Law Tribunal (NCLT) In Resolving Oppression And Mismanagement Under The Companies Act, 2013
- IJLLR Journal
- Mar 23
- 1 min read
BS Darshan Kumar, LL.M. (Business Law), Amity University Uttar Pradesh, Noida
ABSTRACT
In this paper, the author will examine how the National Company Law Tribunal (NCLT) could help resolve the issue of oppression and mismanagement by Companies Act, 2013. The NCLT is an expert quasi- judicial institution that has the authority to adjudicate corporate conflicts effectively and safeguard the interests of the stakeholders, especially those of the minority shareholders. The Act in section 241 and 242 offers solutions in the event of prejudice, oppression or actions that are harmful to the company. The paper demonstrates the difference between oppression and mismanagement and how the Tribunal grants itself broad discretional authority to control affairs of companies, expel directors, and promote good governance. The active nature of the NCLT in avoiding the misuse of power is evidenced by important case laws such as those on joint venture and shareholder rights. Although it has been effective in enhancing corporate governance, some challenges have been experienced which include delays and backlog. The conclusion made in the paper is that institutional efficiency further reinforces the role of NCLT in transparency and accountability of corporate management.
Keywords: Oppression, Mismanagement, National Company Law Tribunal (NCLT), Corporate, Governance.
