NCLAT issues notices to creditors on Subhash Chandra's insolvency plea
The appellate tribunal will hear Chandra's challenge to the NCLT order restraining him from alienating assets on October 29 and 30; creditors have a week to file replies
New Delhi - Subhash Chandra, chairman of the Essel Group, filed a plea with the National Company Law Appellate Tribunal (NCLAT) challenging a September 1 order by a five-member NCLT bench. The matter will be heard on October 29 and 30.
Chandra's petition contends that the earlier decision exceeded the NCLT's authority. The tribunal has directed creditors to file their responses within a week.
The tribunal also consolidated a separate petition filed by creditors challenging the NCLT approval of a settlement involving Rs 6.5 crore against claims of Rs 22,006.57 crore. The NCLAT scheduled the hearing of Chandra's interim relief applications for October 29 and 30, with one day for Chandra's arguments and the other for creditor submissions.
Solicitor General Tushar Mehta, representing some creditors, asked for the outcome of the next NCLT hearing to be awaited, but this was opposed by Subhash Chandra's advocate. The five-member NCLT bench had issued a notice to the CBI in Chandra's personal insolvency matter and stated that the interim director restraining him from alienating property would continue until the CBI's final decision.
Chandra alleged that the NCLT's order exceeded its jurisdiction and questioned the formation of the five-member bench. A two-member bench of the NCLT delivered a split verdict on Chandra's personal insolvency resolution process, with one member approving a repayment plan and the other rejecting it, leading to a reference for additional members' decision.
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