Subhash Chandra challenges NCLT bench formation in insolvency appeal

Senior Advocate Sasmit Patra, appearing for Subhash Chandra before the National Company Law Appellate Tribunal, has challenged the composition of the bench hearing the promoter's personal insolvency proceedings. Patra argued that the National Company Law Tribunal's decision to constitute a five-member bench was "faulty and wrong," contending that the tribunal did not possess the requisite powers to establish such a bench configuration.

The challenge comes as Chandra's case progresses through appellate proceedings following earlier tribunal proceedings in his personal insolvency matter. The specific grounds on which the NCLT allegedly exceeded its authority in forming the larger bench remain part of ongoing deliberations before NCLAT.

The appeal highlights questions about procedural authority and bench constitution under the Insolvency and Bankruptcy Code framework. Chandra's legal team has positioned the bench formation issue as a fundamental procedural matter that could impact the validity of subsequent proceedings and orders issued by the constituted bench.

The NCLAT is expected to adjudicate the validity of the tribunal's powers to form benches of varying sizes and determine whether the current five-member composition meets statutory requirements. The outcome may have implications for how the tribunal structures benches in similar proceedings going forward.