Subhash Chandra opposes NCLT’s five-member bench as creditors’ appeal remains pending in NCLAT
Subhash Chandra challenges NCLT’s five-member bench in his insolvency case, while NCLAT keeps lenders’ challenge to his repayment plan alive and will hear the matter on 7 October.
Subhash Chandra, founder of the Zee Group, has opposed the National Company Law Tribunal's (NCLT) decision to form a five-member bench to hear his personal insolvency case again. Chandra's legal team argued that Section 419(5) of the Companies Act does not provide the NCLT with the power to expand the bench after three members disagreed on his repayment plan.
The NCLAT has kept the creditor's challenge to Chandra's repayment plan pending while the National Company Law Appellate Tribunal (NCLAT) reviews the matter. A five-judge bench of the NCLT recently ruled that an earlier order approving the repayment plan cannot be enforced as it did not represent the majority view of the tribunal.
The case revolves around Chandra's liability as a personal guarantor for loans associated with the Essel and Zee Groups, with potential liabilities of ₹2,574 crore held by creditors.
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