{"id":30106,"date":"2020-03-31T18:20:32","date_gmt":"2020-03-31T12:50:32","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=30106"},"modified":"2020-03-31T18:20:40","modified_gmt":"2020-03-31T12:50:40","slug":"nclt-amendment-2020-whats-new-inside-under-nclt-amendment","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/nclt-amendment-2020-whats-new-inside-under-nclt-amendment\/","title":{"rendered":"What is new under National Company Law Tribunal, NCLT Amendment 2020"},"content":{"rendered":"<p class=\"has-drop-cap\">The <strong>NCLT <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Amendment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An &amp;quot;amendment&amp;quot; refers to the formal change or correction of a legal document, often involving additions, variations, or deletions to address irregularities or clarify points in an agreement.(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/amendment\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Amendment<\/a> 2020<\/strong> has been created to amend the existing NCLT Rules, 2016. This was notified by the Ministry of Corporate Affairs on the 3rd of February 2020 and will be effective from 6th of February 2020. These amended rules furnish about the new facility for application for takeover offer of companies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is NCLT?<\/h2>\n\n\n\n<p><strong><em>National Company Law Tribunal (NCLT)<\/em><\/strong> is a quasi-judicial body set to rule over the registered companies in India. It has been formed after dissolving the Company Law Board. <a href=\"https:\/\/nclt.gov.in\/\"><strong><em>NCLT<\/em><\/strong><\/a> plays a major role in regulating companies. It is vested with so many powers on it. Some of the powers are such that, it can de-register a company, it can freeze the assets and securities of the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Amended Rules of 2020<\/h2>\n\n\n\n<p>In exercise of the powers conferred by <strong><em>sub-section (1) and sub-section\n(2) of section 469 read with section 230 of the Companies Act, 2013<\/em><\/strong>,\nthe Central Government hereby makes the following rules further to amend the\nNational Company Law Tribunal Rules, 2016. These rules may be called the\nNational Company Law Tribunal (Amendment) Rules, 2020.<\/p>\n\n\n\n<ul><li>After Rule 80, the following rule shall be\ninserted, as Rule 80A is below:<\/li><\/ul>\n\n\n\n<p><strong>80A- Application under section 230<\/strong>&ndash; An application under sub&shy;section (12) of section 230 may be made in Form NCLT-1 and shall be accompanied with such documents as are mentioned in Annexure B.<\/p>\n\n\n\n<ul><li>After Rule 22 and the entries relating thereto,\nthe following shall be inserted as below:<\/li><\/ul>\n\n\n\n<p><strong>22A- Sec 230(12)<\/strong> &ndash; Application in cases of takeover offer of companies which are not listed. Fees required Rs. 5,000.<\/p>\n\n\n\n<ul><li>The list of documents to be attached with the\nabove application shall be as follows:<\/li><li>Affidavit verifying the petition<\/li><li>Memorandum of appearance with copy of the\nBoard&rsquo;s Resolution or the executed vakalatnama, as the case may be.<\/li><li>Documents in support of the grievance against\nthe takeover<\/li><li>Any other relevant document<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Applicability of NCLT Amendment 2020&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/h2>\n\n\n\n<p>The arrangement or compromise in a\ncompany includes reorganizing the capital share of a company. This takes place\nby consolidating the shares of different classes or by dividing the shares into\ndifferent classes. The compromise or arrangements include the takeover offer of\ncompanies other than listed companies. The takeover offer shall be as per the\nregulation set by the Securities and Exchange Board. If any party finds it\ninjustice about the takeover offer, they can appeal to the Tribunal. The\napplicant can file the application in Form NCLT-1 and the applicant can be\neither being a creditor or a member of a company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Payment of Fees<\/h2>\n\n\n\n<p>The creditor or the member\napplying for the cases of the takeover offer of the companies must comply with\npaying an amount of Rs. 5000.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Required Details for Form NCLT-1<\/h3>\n\n\n\n<p><strong>The required for filling and submitting the Form NCLT-1 are as follows:<\/strong><\/p>\n\n\n\n<ul><li>The\nparticulars of the original application, rejoinder, reply or interlocutory\napplication<\/li><li>A\ndeclaration stating that the matters of the petition are within the\njurisdiction of the Bench<\/li><li>If\napplicable the limitation of the petition<\/li><li>The\nfacts of the issue in a chronological order<\/li><li>The\nrelief sought by the applicant for the petition<\/li><li>The\ndetails of the bank draft. This is to verify payment of the fees by the\napplicant<\/li><\/ul>\n\n\n\n<p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/process-of-filing-of-appeal-before-nclt\/\" target=\"_blank\" rel=\"noopener noreferrer\">Process of Filing of Appeal Before NCLT<\/a><\/mark>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Purposes of Form NCLT-1<\/h3>\n\n\n\n<p>The Form NCLT-1 is applicable to\napply for several other purposes. The Form NCLT-1 is applicable for any\npetition or reference. The following are the purposes:<\/p>\n\n\n\n<ul><li>For\nthe changes in the financial year<\/li><li>To\nthe Tribunal if the incorporation of the company has taken place by furnishing\nfalse or incorrect information or by any fraudulent action<\/li><li>For\nconverting a public company into a private company<\/li><li>For\nissuing further redeemable preference shares<\/li><li>An\nappeal against the refusal of registration of shares<\/li><li>An\nappeal to rectify the register of a member<\/li><li>To\nthe Tribunal for consolidating and dividing the share capital<\/li><li>Deposition\nfor the repayment of deposits or the interest<\/li><li>To\ncall for the Annual General Meeting (AGM)<\/li><li>To\ncall for any other general meetings<\/li><li>For\na voluntary revision of the financial statement on the Board&rsquo;s report<\/li><li>For\npetition against the removal of the auditor<\/li><li>Apply\nfor a petition against the removal of directors<\/li><li>For\nInvestigating the company&rsquo;s affairs<\/li><li>For\nrelief from the oppression cases<\/li><li>Apply\nto opt-out of the proceedings at any time<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Documents Required<\/h2>\n\n\n\n<p><strong>The following are the documents required to be enclosed along with the Form NCLT-1<\/strong><\/p>\n\n\n\n<ul><li>An\naffidavit which verifies the petition<\/li><li>A\nmemorandum of appearance. This should be accompanied with a copy of the\nexecuted vakalatnama or the Board&rsquo;s Resolution.<\/li><li>The\ndocuments which support the grievances against the takeover.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion<\/h3>\n\n\n\n<p>The main changes are made with the new Rule 80A according to which an <a href=\"https:\/\/enterslice.com\/learning\/national-company-law-tribunal-nclt\/\"><strong>application in Form NCLT-1<\/strong><\/a> shall be filed before the tribunal by an aggrieved party in the event of any grievances with respect to the takeover offer of companies other than listed companies in such manner as may be prescribed and the Tribunal may, on the application, pass such order as it may deem fit.<\/p>\n\n\n\n<p><b>Read, More:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/appeal-national-company-law-tribunal\/\" target=\"_blank\" rel=\"noopener noreferrer\">Appeal on National Company Law Tribunal Process &amp; Requirement\n<\/a><\/mark>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The NCLT Amendment 2020 has been created to amend the existing NCLT Rules, 2016. This was notified by the Ministry of Corporate Affairs on the 3rd of February 2020 and will be effective from 6th of February 2020. These amended rules furnish about the new facility for application for takeover offer of companies. What is [&hellip;]<\/p>\n","protected":false},"author":34,"featured_media":30115,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,2438],"tags":[2864],"acf":{"service_id":"215"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NCLT Amendment 2020: What&#039;s New Inside Under NCLT Amendment<\/title>\n<meta name=\"description\" content=\"NCLT Amendment 2020 notified by the Ministry of Corporate Affairs on the 3rd of February 2020 and will be effective from 6th of February 2020.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/nclt-amendment-2020-whats-new-inside-under-nclt-amendment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NCLT Amendment 2020: What&#039;s New Inside Under NCLT Amendment\" \/>\n<meta property=\"og:description\" content=\"NCLT Amendment 2020 notified by the Ministry of Corporate Affairs on the 3rd of February 2020 and will be effective from 6th of February 2020.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/nclt-amendment-2020-whats-new-inside-under-nclt-amendment\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-31T12:50:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-31T12:50:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/NCLT-Amendment-Rules-2020.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Soumya-Bajpai.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":443,"readingTime":3,"nextPost":{"id":30117,"slug":"compliance-to-be-followed-by-resolution-professional-under-gst"},"prevPost":{"id":30099,"slug":"sebi-provides-ways-to-tackle-market-volatility-amid-covid-19-crisis"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/NCLT-Amendment-Rules-2020.jpg","postTerms":"Latest News","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/30106"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=30106"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/30106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/30115"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=30106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=30106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=30106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}