Business EconomyPosted at: Sep 29 2026 6:14PM


NCLAT issues notices to creditors on Subhash Chandra’s challenge to insolvency order

New Delhi, Sep 29 (UNI) The National Company Law Appellate Tribunal (NCLAT) on Tuesday issued notices to creditors in connection with Essel Group Chairman Subhash Chandra’s challenge to an order passed by the NCLT in his personal insolvency proceedings. The appellate tribunal has scheduled the matter for detailed hearing on October 29 and 30.
Chandra has approached the NCLAT against the September 1 order of a five-member larger bench of the NCLT. The order had stayed the decision of a third tie-breaker judge in the insolvency case and continued restrictions on Chandra’s ability to transfer or dispose of his assets.
A three-member NCLAT bench comprising Officiating Chairperson Justice (Retd.) Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra directed the creditors, who have questioned the maintainability of Chandra’s appeal, to submit their responses within a week. Chandra has also been given one week to file his rejoinder after receiving the creditors’ replies.
The appellate tribunal also agreed to hear alongside Chandra’s appeal a separate petition filed by creditors challenging an NCLT order that had approved a settlement involving a payment of around Rs 6.5 crore against admitted claims of approximately Rs 22,006.57 crore. Solicitor General Tushar Mehta appeared for some of the creditors in the proceedings.
The NCLAT has earmarked October 29 and 30 for arguments on Chandra’s applications seeking interim relief. The tribunal indicated that submissions by Chandra’s side would be heard on one day, followed by arguments from the creditors on the other.
During the hearing, Solicitor General Tushar Mehta suggested that the appellate tribunal wait for the outcome of the next proceedings before the five-member NCLT bench, which is scheduled to hear the matter on November 19. Chandra’s counsel, advocate Dhruv Mehta, opposed the suggestion.
The dispute stems from the NCLT’s proceedings in Chandra’s personal insolvency case. At its September 23 hearing, the five-member NCLT bench issued a notice to the Central Bureau of Investigation (CBI) and indicated that the interim restrictions preventing Chandra from alienating his properties would remain in force until a final decision.
The CBI has registered an FIR against Chandra over allegations relating to the valuation of his net worth and loans obtained from Life Insurance Corporation Housing Finance Limited (LICHFL). The agency is examining allegations that inflated net-worth certificates were used to secure loans, with the lender claiming that two loans totalling Rs 980 crore were approved and disbursed on the basis of the submitted certificates.
The allegations have also been linked to an alleged loss of more than Rs 1,322 crore to LICHFL, according to the lender's complaint that forms part of the FIR.
In his appeal before the NCLAT, Chandra has challenged the September 1 NCLT order and argued that the larger bench had acted beyond the authority provided under the insolvency law. He has also questioned the constitution of the five-member NCLT bench hearing the matter.UNI VK AAB
Tags: #NCLAT issues notices to creditors on Subhash Chandra’s challenge to insolvency order
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see more..