It was formed on June 1, 2016, as per the provisions of the Companies Act 2013 (Section 408) by the Indian government.

NCLT was formed based on the recommendations of the Justice Eradi Committee that was related to insolvency and winding up of companies in India.

NCLT Functions

1. All proceedings under the Companies Act such as arbitration, arrangements, compromise, reconstruction, and winding up of the company will be disposed of by the Tribunal.
2. The NCLT is also the Adjudicating Authority for insolvency proceedings under the Insolvency and Bankruptcy Code, 2016.  In the above-mentioned subjects, no civil court will have jurisdiction.
3. It has powers of adjudication for cases Initiated before the Company Law Board under the previous act (the Companies Act 1956); 
4. The NCLT has the authority to dispose of cases pending before the Board for Industrial and Financial Reconstruction (BIFR), as well as, those pending under the Sick Industrial Companies (Special Provisions) Act, 1985; or
5. Pending before the Appellate Authority for Industrial and Financial Reconstruction; and
6. Pertaining to claims of oppression and mismanagement of a company, winding up of companies and all other powers prescribed under the Companies Act.
7. It can also take up cases relating to the oppression and mismanagement of a company.

The tribunal has 16 benches, spread across New Delhi (one being the principal bench), Ahmedabad, Prayagraj, Bengaluru, Chandigarh, Chennai, Cuttack, Guwahati, Hyderabad including for Amaravati, Jaipur, Kochi, Kolkata and at Mumbai.

The NCLT bench is chaired by a Judicial member who is supposed to be a retired or a serving High Court Judge and a Technical member who must be from the Indian Corporate Law Service, ICLS Cadre.

In addition to NCLT, there is a National Company Law Appellate Tribunal (NCLAT) which is a tribunal which was formed by the government under Section 410 of the Companies Act, 2013. NCLAT is responsible for hearing appeals from the orders of the National Company Law Tribunal.

Decisions taken by the NCLT can be appealed to the National Company Law Appellate Tribunal (NCLAT). The decisions of the NCLAT can be appealed to the Supreme Court on a point of law.