DISPUTE SETTLEMENNT (ROC & NCLT)
Dispute Settlement (ROC & NCLT) is the legal procedure for resolving and addressing corporate disputes through the Registrar of Companies (ROC) and the National Company Law Tribunal (NCLT) under the provisions of the Companies Act, 2013. These regulatory authorities deal with various issues such as non-compliance, shareholder and management disputes, oppression and mismanagement, insolvency, and other corporate grievances. This formal mechanism for resolving disputes guarantees that businesses work within the confines of the law, remain regulatory compliant, and protect the interests of all concerned stakeholders.
Registrar of Companies (ROC)
The ROC primarily deals with compliance-related disputes, such as:
✅ Non-filing of annual returns or financial statements
✅ Default in company incorporation procedures
✅ Irregularities in company records or director appointments
✅ Issuance of show-cause notices and penalties
National Company Law Tribunal (NCLT)
The NCLT functions as a quasi-judicial authority to adjudicate more serious corporate disputes, including:
✔ Cases of oppression and mismanagement
✔ Director or shareholder disputes
✔ Company law violations
✔ Mergers, demergers, and restructuring
✔ Insolvency and Bankruptcy proceedings (under IBC, 2016)
Why is Dispute Settlement Important?
✅ Ensures legal resolution of corporate conflicts
✅ Prevents escalation of internal business issues
✅ Protects the rights of shareholders, directors, and creditors
✅ Maintains compliance with the Companies Act & IBC
✅ Strengthens overall corporate governance and accountability
