India Tax & Regulatory
NCLT Scheme of Arrangement
A court-sanctioned merger, demerger, or capital reduction scheme via the National Company Law Tribunal, used to transfer a business division with statutory finality and creditor cram-down effect.
Buyer Example
Buyer prefers acquiring only the profitable divisions of a Kolkata multi-division manufacturing group via an NCLT-sanctioned demerger rather than a direct slump sale, since the NCLT route legally binds all creditors and minority shareholders to the split, eliminating the risk of a dissenting creditor later challenging the asset transfer.