In personal insolvency case before NCLAT, Subhash Chandra opposes formation of 5-member NCLT bench
Essel Group Chairman Subhash Chandra is challenging the legality of a five-member bench formed by the NCLT to oversee his personal insolvency case. The dispute centers on whether the tribunal has the authority to constitute such a bench following a split verdict among lower members.
Why it matters
The case sets a significant legal precedent regarding the procedural powers of the NCLT in handling high-stakes personal insolvency and corporate debt disputes.
Essel Group Chairman Subhash Chandra on Wednesday (September 2, 2026) opposed the formation of a five-member bench by the National Company Law Tribunal (NCLT) to decide his personal insolvency case, contending that the tribunal does not have the power to constitute such a bench.
Appearing for Mr. Chandra before the National Company Law Appellate Tribunal (NCLAT), Senior Advocate Sasmit Patra termed the NCLT order "faulty and wrong" and said, "they are not empowered" to form a five-member bench.
Mr. Patra submitted that the five-member bench had on Tuesday (September 1) stayed the order of Nilesh Sharma, Member (Judicial), who was brought in as the third member after a division bench of the NCLT delivered a split verdict.
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