Section 408 of Companies Act, 2013 defines NCLT and it specifies that the Central Government shall constitute a Tribunal to be known as the National Company Law Tribunal composing of President and other Judicial and Technical members, to exercise and discharge powers and functions as prescribed by the Act or any other power delegated to them by way of any other enactment or a Notification by Ministry Of Corporate Affairs.

Similar to NCLT, NCLAT was established as per Section 410 of Companies Act which states that the Central Government, by way of notification shall constitute an Appellate Tribunal to be known as the National Company Law Appellate Tribunal comprising Chairperson and Judicial and Technical members, for hearing appeals against the orders of the Tribunal.

NCLT and NCLAT have been established to act as a uniform forum for adjudicating disputes relating to working of companies where adjudicating it in a timely manner will help in smooth running of the economy. The earlier regime of the Company Law Board failed miserably because they were not useful in adjudicating disputes in an effective and time bound manner. Though NCLT and NCLAT are doing great work in streamlining the system, a lot more needs to be done. There is a need for improving the infrastructures at these Tribunals, increasing the Number of Benches as well as sanctioning of judges which will help in deciding cases in a time bound and effective manner and thus would reduce precious time and resources of companies which can be used by companies in growth of economy of India.