NCLAT seeks creditors’ replies on Subhash Chandra plea

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Tuesday issued notices to creditors on Essel Group chairman Subhash Chandra’s plea challenging a National Company Law Tribunal (NCLT) order in his personal insolvency case and scheduled the matter for October 29 and 30.

Chandra had challenged the September 1 order of a five-member NCLT bench, which stayed an earlier order of a third member of the tribunal and restrained him from alienating his assets. A three-member NCLAT bench directed creditors opposing the maintainability of Chandra’s petition to file their replies within a week. Chandra was given a further week to file his rejoinder.

The bench, comprising Officiating Chairperson Justice (Retd.) Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra, fixed October 29 and 30 for hearing Chandra’s interim relief applications.

The appellate tribunal also clubbed a separate petition filed by creditors challenging the NCLT order that had approved a settlement involving payment of about Rs 6.5 crore against admitted claims of around Rs 22,006.57 crore.

The insolvency proceedings followed a split verdict by a two-member NCLT bench. While Member (Judicial) Ashok Kumar Bhardwaj approved Chandra’s repayment plan and held him eligible for relief under the insolvency framework for personal guarantors, Member (Technical) Reeta Kohli rejected the proposal.

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