It is a quasi-judicial authority incorporated to deal with corporate disputes arising under the Companies Act that are of a civil nature. However, a difference in NCLT's powers and functions under the preceding Companies Act and the 2013 Act could be seen. The NCLT's constitutional validity and specified allied provisions contained in the Act were re-challenged. The NCLT's constitutional validity had been retained by the Supreme Court but particular clauses were found as a breach of constitutional principles.

NCLT works on the lines of a normal court of law in the country and is obliged to determine the facts of each case fairly and without any bias, and to decide on matters in accordance with the principles of natural justice and to offer conclusions from decisions in the form of orders in the continuation of such decisions. The orders thus formed by NCLT could help resolve a situation, rectify a mistake committed by any company or impose penalties and costs, and could alter the rights, obligations, duties, or privileges of the parties concerned. The Tribunal is not obliged to adhere to the strict rules regarding the assessment of any evidence or procedural law.

Litigation matter which may be litigate at NCLT
Registration of Company

On application to ROC a person can get its company register or de-register but due to some reason if the company does not register or de-register it maybe appeal to NCLT for resolving the query. NCLT was allowed to take several steps, including canceling a company's registration to dissolving any business. The Tribunal may also unlimitedly make the members' liability or charge. Under this method, NCLT will de-register any company under section 7(7) of the Companies Act, 2013 in particular circumstances where the certificate of registration has been obtained by unlawful manner or by illegal means.

Share Transfer

NCLT is also empowered to hear complaints of company rejection in the sale of shares and assets, and pursuant to section 58-59 of the Act which was originally under the jurisdiction of the Company Law Board. Going back to the Companies Act, 1956, the option available to refuse transmission or transfer was limited only to a company's shares and debentures, but from now on the prospect has been expanded under the Companies Act, 2013, and now it includes all the securities issued by any firm.