Subhash Chandra Challenges NCLT's Five-Member Bench In Personal Insolvency Case

Essel Group Chairman Subhash Chandra has opposed the formation of a five-member bench by the National Company Law Tribunal (NCLT) to hear his personal insolvency case. The matter came before the National Company Law Appellate Tribunal (NCLAT), where Chandra's legal team challenged the NCLT's decision to constitute the larger bench. The dispute centres on whether the tribunal has the authority to form a five-member bench for deciding the personal insolvency proceedings.

Appearing for Chandra before the NCLAT, Senior Advocate Sasmit Patra described the NCLT's order as "faulty and wrong". He argued that the tribunal was not empowered to constitute a five-member bench for the case. The challenge therefore raises a procedural issue concerning the composition and jurisdiction of the NCLT bench handling the insolvency proceedings against Chandra.

Chandra, who heads the Essel Group, is facing personal insolvency proceedings before the NCLT. Personal insolvency proceedings involve the resolution of financial obligations of an individual under the applicable insolvency framework. In such cases, questions relating to the tribunal's jurisdiction, procedure and the manner in which a matter is heard can become significant as proceedings move through different stages.

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The matter is now before the NCLAT, which hears appeals against orders passed by the NCLT. Chandra's challenge seeks to contest the validity of the NCLT's decision to expand the bench to five members. His counsel's submission before the appellate tribunal focused specifically on the tribunal's authority to take such a step.

The objection comes as the insolvency proceedings involving Chandra continue through the legal process. The NCLAT will consider the arguments raised against the NCLT order as part of the ongoing proceedings. The case could also have significance for the interpretation of procedural powers available to NCLT benches when dealing with personal insolvency matters.

The proceedings remain subject to the decisions of the NCLAT and any further legal remedies available to the parties. Chandra's latest challenge does not by itself determine the outcome of the underlying personal insolvency case. The central issue raised before the appellate tribunal is whether the NCLT was legally authorised to constitute a five-member bench to decide the matter.

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