NCLT convenes rare 5-member bench to resolve Subhash Chandra insolvency case

The National Company Law Tribunal has constituted a five-member bench to determine the repayment plan in the personal insolvency proceedings of Subhash Chandra, the Essel Group founder, marking an unusual escalation in the tribunal's decision-making process.

The bench formation was necessitated after a division bench of two judges could not arrive at a majority verdict on the matter. In such scenarios where lower benches remain deadlocked, tribunal rules allow for the constitution of a larger bench to break the impasse and deliver a definitive ruling.

The case involves substantial financial claims exceeding ₹22,000 crore, making it a significant test case for India's insolvency resolution framework as applied to individuals. The proceedings have drawn considerable attention given Chandra's prominence in the Indian media and entertainment sector.

Personal insolvency cases under the Insolvency and Bankruptcy Code represent a relatively newer domain for the tribunal, and this matter has already proven contentious enough to require bench expansion. The five-member bench's decision will set important precedents for how similar high-value claims are adjudicated in the personal insolvency space.

The tribunal's move underscores the complexity of high-profile insolvency cases and the institutional mechanisms in place to ensure clarity when judicial disagreement threatens to leave matters unresolved.