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Subhash Chandra opposes NCLT five-member bench
The Hindu··2 Sept
Essel Group chairman Subhash Chandra told NCLAT that NCLT lacked power to form a five-member bench in his personal insolvency case. Counsel Sasmit Patra called the order faulty. A five-member NCLT bench on September 1 stayed Member Nilesh Sharma's order allowing about Rs 6.5 crore against claims near Rs 22,006 crore. NCLT listed the matter for September 23.
Prism
What It Means For You
- Creditors including LIC Housing Finance challenged the third member's repayment-plan order.
- Chandra's side says Section 419(5) of the Companies Act does not authorise a five-member bench.
- NCLAT kept the creditors' appeal pending rather than disposing it immediately.
What's Happening
- Patra argued the five-member bench stayed only Sharma's order after a split division bench.
- Solicitor General Tushar Mehta appeared for dissenting creditors before NCLAT on September 2.
- Officiating Chairperson Justice Yogesh Khanna said the five-member constitution was not before NCLAT.
What the Orders Conflict On
- Sharma had been brought in after a two-member NCLT split on the repayment plan.
- Claims against Chandra as personal guarantor are about Rs 22,006 crore.
- Livemint said NCLAT would hear the matter again on October 7.
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