NCLT filing SOP- Pre-Requisite for E-filing Matters in NCLT

The National Company Law Tribunal (NCLT) issued an order dated 22.12.2023, directing all litigants, advocates, or parties to follow the pre-requisite outline on formatting, proper book marking of Petition/Applications/Pleadings/Documents, electronic signature using e-Sign, retention of originals etc. at time of E-filing Matters in NCLT portal https://efiling.nclt.gov.in, which came into effect on 01.01.2024. It mentions mandatory formatting, electronic signature, certain guidelines that must be followed, and actions that are not permitted. This order has transformed the insolvency process by addressing procedural irregularities. 

Overview of the Order on Mandatory E-filing Matters in NCLT

Context and Objective:

The rationale behind this mandate is to simplify and digitise the filing process. Thus, reducing manual intervention and ensuring transparency, accountability, and consistency in handling tribunal matters. It also aligns with the broader goal of digitizing judicial processes under Digital India initiatives, creating a more accessible and user-friendly environment for litigants, lawyers, and court staff. 

Effective Date and Applicability:

As stated above the mandatory compliance was effective from 01.01.2024 and applies to all filings across NCLT benches nationwide. 

Mandatory Pre-Requisites for E-filing Matters in NCLT

User Registration on theE-filing Matters in NCLT Portal:

Before initiating filings on the digital platform, stakeholders are required to register themselves on the E-filing Matters in NCLT portal, this includes all legal professionals and corporate applicants. 

Digital Signatures:

According to this order, electronic signatures mean the signs to the document, using the Digital Signature Certificate (DSC) issued by the Certifying Authority or e-Sign Based on Aadhar Authentication. It involves the requirement of Class III Digital Signatures (DSC) for submitting filings and applies to authorized representatives and applicants and ensures the authenticity and security of filings.

Suggested Reading : Section 33 of IBC – Insolvency and Bankruptcy Code

Adherence to the E-Filing Checklist:

It is important to comply with the detailed checklist provided by NCLT. The checklist includes specific formatting requirements, document types, and procedural steps, ensuring that filings are complete, accurate, and in line with the prescribed guidelines.

Use of PDF/A Format:

It is required that the stakeholder upload documents in PDF/A format for long-term preservation and accessibility.

Proper Indexing and Bookmarking:

The order includes a directive for proper indexing and bookmarking of e-filed documents, ensuring the ease of reference during hearings.

Key Features of the E-filing Matters in NCLT System

Online Payment Integration:

By establishing an online payment gateway for court fees, the NCLT ensures convenience for all stakeholders, and reduces any errors that may occur due to manual payment. 

Real-Time Filing Status Updates:

The NCLT has introduced a user-friendly platform, in which users can track the real-time status of their filings on the portal.

Notification and Alerts:

This platform also includes a feature for automated email and SMS alerts. Thereby, stakeholders will be informed about any updates or deficiencies in their filings. 

Compliance Challenges and Tips

Despite its benefits, certain challenges may arise:

Technical Readiness:

Stakeholders may find it difficult to adapt to the new system. There may be issues in using Digital Signatures and understanding technical requirements like PDF/A formatting.

Training and Familiarity:

Stakeholders need to familiarize themselves with the portal’s interface and the E-filing Matters in NCLT checklist. To avoid further issues, it is recommended to organise training sessions for legal and insolvency professionals to ensure smooth compliance.

Suggested Reading :Section 9 of IBC – Insolvency and Bankruptcy Code, 2016

Internet Accessibility Issues:  

Although this order has the main aim to reduce procedural irregularities, there may be delays in filing. This could be because there is limited internet connectivity in certain locations. To avoid this issue there should be offline preparation of filings before uploading.

Implications for Insolvency Professionals and Stakeholders

For Insolvency Professionals:

Insolvency professionals (IPs) may lack the technical know-how to deal with the new system. On the other hand, it is beneficial for them as the new system ensures transparency and accountability for filings under IBC proceedings, such as applications under Sections 7, 9, or 10 in the Insolvency and Bankruptcy Code, 2016 (IBC).

For Legal Practitioners:

Legal practitioners handle numerous cases at a time. This new system introduces procedural efficiencies, like quicker approvals and better documentation management.

For Corporate Entities:

This order establishes directives that simplify compliance for corporate debtors and creditors by reducing manual errors and delays.

The Way Forward

Procedural irregularities and ineffective communication among stakeholders delay the insolvency and liquidation proceedings. This new system emphasises the importance of ongoing updates. It has introduced improvements to the E-filing Matters in NCLT system based on stakeholder feedback. To further improve the resolution process, it is recommended to utilise advanced technological tools, such as artificial intelligence for document review and real-time deficiency identification. Furthermore, to ensure its integration into the current system, there needs to be collaboration between NCLT, legal associations, and professionals.

Conclusion

The main intent behind the order of the E-filing Matters in NCLT was to streamline the tribunal’s operations. Digitsing the filing procedure for the stakeholders reduces the time required for submitting certain documents and reduces the burden of the NCLT.  According to this order, all documents must be properly formatted and bookmarked, making it easier to navigate within the filings. The stakeholders need to digitally sign the documents using a DSC and must submit them in PDF/A format. Although submitting electronic documents is necessary, parties must retain the original documents for potential certifications.