Subhash Chandra Challenges Formation Of Five-Member NCLT Bench In Personal Insolvency Case Before NCLAT
New Delhi: Essel Group Chairman Subhash Chandra on Wednesday opposed the formation of a five-member bench by the NCLT to decide his personal insolvency case, contending that the tribunal does not have the power to constitute such a bench. Appearing for Chandra before the National Company Law Appellate Tribunal (NCLAT), Senior Advocate Sasmit Patra termed the NCLT order "faulty and wrong" and…
Essel Group Chairman Subhash Chandra has challenged the formation of a five-member bench in his personal insolvency case before the National Company Law Appellate Tribunal (NCLAT). Subhash Chandra's legal representative, Senior Advocate Sasmit Patra, contended that the tribunal does not have the authority to create such a bench.
Patra argued that the tribunal is only empowered to form a three-member bench. The five-member bench had on Tuesday stayed an order of Nilesh Sharma, allowing Chandra six more days to respond to creditor demands. This bench decision came after a split verdict by a division bench of the NCLT. Patra questioned the authority of the tribunal to convene a five-member bench, citing the limited scope of Section 419 of the Companies Act, 2013.
Subhash Chandra's case is currently under appeal, with dissenting creditors challenging the repayment plan.
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