5-member NCLT bench to hear Indiabulls plea against Chandra
The NCLT president has formed a five-member bench to resolve a complex insolvency case involving Indiabulls Housing Finance and Essel Group chairman Subhash Chandra. The move follows a split verdict within the tribunal regarding a repayment plan for significant creditor claims.
Why it matters
The case is a significant test of India's Insolvency and Bankruptcy Code, particularly regarding the personal liability of promoters in large-scale corporate debt defaults.
NEW DELHI: In a virtually unprecedented development, National Company Law Tribunal (NCLT) president Justice Anupinder Singh Grewal on Monday constituted a five-member bench headed by him to hear Indiabulls Housing Finance’s insolvency plea against Subhash Chandra, involving guarantees offered by him to lenders.The bench will hear the case on Tuesday, the same day that the National Company Law Appellate Tribunal (NCLAT) hears the challenge to the NCLT order that approved a Rs 6.5 crore payment by the Essel Group chairman over creditor claims of about Rs 22,007 crore in his personal insolvency resolution process.On Monday, Solicitor General Tushar Mehta, appearing for LIC Housing Finance, mentioned the matter before an NCLAT bench and sought an urgent hearing in the second half of the day.Mehta, who also represented public sector players Canara Bank and Union Bank, said that if the order is allowed to continue, it will “defeat the very purpose of…
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