NCLAT issues notices to lenders on Subhash Chandra’s plea against NCLT order

Mumbai: The National Company Law Appellate Tribunal (NCLAT) on Tuesday issued notices to lenders on a plea filed by Essel Group chairman Subhash Chandra, challenging the National Company Law Tribunal (NCLT) order forming a five-member bench.

The appellate tribunal, presided over by Officiating chairperson Justice Yogesh Khanna and technical members Barun Mitra and Ajai Das Mehrotra, directed the lenders to file their responses and adjourned the matter to October 29.

Subhash Chandra, personal guarantor to several corporate borrowings of Essel Group companies, has approached the appellate tribunal and has named resolution professional Shiv Nandan Sharma, Canara Bank, HDFC Bank, IDBI Trusteeship Services (as trustees for Edelweiss Fund and Franklin Templeton), IndusInd Bank, LIC Housing Finance, RBL Bank and Union Bank of India as respondents.


The specially constituted five-member NCLT bench has stayed the order of a third tie-breaker judge in his personal insolvency matter and restrained him from alienating his assets.

The NCLAT directed creditors who had challenged maintainability of Chandra's petition, among others, to file their responses within a week. It also gave Chandra a week to file his rejoinder.

On September 8, in its official statement, Chandra maintained that the claim admitted in the NCLT pertaining to India's banking system, as of the date of filing the claims, was ₹3,992 crore. The rest of the claims were of private parties, including NBFCs, Corporates and funds.