Subhash Chandra Insolvency Case: NCLT Forms 5-Member Bench After Split Verdict
Kamal Singh|Newsdesk7
••6 views•4 min read
New Delhi, September 1, 2026: The personal insolvency case involving Essel Group founder Subhash Chandra has taken a fresh turn after the National Company Law Tribunal (NCLT) constituted a five-member Special Bench to reconsider his repayment plan.
New Delhi, September 1, 2026: The personal insolvency case involving Essel Group founder Subhash Chandra has taken a fresh turn after the National Company Law Tribunal (NCLT) constituted a five-member Special Bench to reconsider his repayment plan.
The development came after three NCLT members delivered materially different views, leaving the tribunal without a clear majority on whether Chandra’s proposed repayment plan could be approved and how it would apply to creditors.
₹6.25 Crore Repayment Plan Against ₹22,006 Crore Claims
At the centre of the dispute is Chandra’s proposed repayment plan under his personal insolvency proceedings.
The plan proposes payment of approximately ₹6.25 crore against admitted creditor claims of around ₹22,006.57 crore. The claims relate to personal guarantees provided by Chandra for borrowings of companies associated with the Essel Group, rather than loans personally borrowed by him.
The huge difference between the admitted claims and the proposed repayment has attracted strong objections from some lenders.
Why Did the NCLT Fail to Reach a Majority?
The dispute began with a split verdict delivered in September 2025.
Judicial Member Ashok Kumar Bhardwaj approved the repayment plan but held that creditors who had opposed it could continue pursuing recovery independently.
Technical Member Reena Sinha Puri, however, rejected the plan, citing concerns over the insolvency resolution process and alleged procedural irregularities.
The matter was subsequently referred to a third member, Nilesh Sharma, who approved the repayment plan but took a different position on how dissenting creditors should be treated. Sharma held that an approved plan could not selectively bind only creditors who supported it.
Because the three opinions did not converge on a common outcome, the tribunal concluded that no majority view had emerged.
Five-Member Bench to Reconsider the Case
Following the deadlock, NCLT President Justice (retd) Anupinder Singh Grewal constituted a five-member Special Bench.
The bench comprises:
Justice (retd) Anupinder Singh Grewal — President Bachu Venkat Balaram Das — Judicial Member Mahendra Khandelwal — Judicial Member Atul Chaturvedi — Technical Member Ravindra Chaturvedi — Technical Member
The larger bench was constituted under the relevant provisions of the Companies Act to resolve the difference of opinion.
Earlier Order Put on Hold
The case took another significant turn on September 1 when the five-member bench stayed the operation of the August 25 order and decided to hear the matter afresh.
The bench also restrained Chandra from alienating any property, directly or indirectly, while the proceedings continue. Notices have been issued to the parties involved.
This means the earlier repayment-plan approval cannot presently be treated as the final resolution of the insolvency dispute.
Why the Case Matters
The case has attracted considerable attention because of the exceptionally large gap between the amount claimed by creditors and the amount proposed under Chandra's repayment plan.
It also raises wider questions about how personal guarantees given by promoters and business founders are dealt with when the underlying corporate borrowers default on their obligations.
The larger NCLT bench will now have to consider the competing opinions and determine the legal status and treatment of the repayment plan.
What Happens Next?
The five-member bench is expected to examine the objections of the lenders, the repayment proposal and the differing opinions already delivered in the case.
The outcome could have implications not only for Chandra and his creditors but also for the interpretation and operation of India's personal insolvency framework involving promoter guarantees.
For now, there is no final majority decision approving the repayment plan.
Key Highlights NCLT has constituted a five-member Special Bench in Subhash Chandra's personal insolvency case. The dispute involves admitted claims of approximately ₹22,006.57 crore. Chandra's proposed repayment is around ₹6.25 crore. Three NCLT members previously delivered differing opinions. The tribunal found that no majority view had emerged. The five-member bench has decided to hear the matter afresh. The August 25 order has been stayed. Chandra has been restrained from alienating property while the case proceeds.
