NCLT Issues Notice to CBI in Subhash Chandra Insolvency Matter, Seek Clarity Over Complaints

New Delhi: The National Company Law Tribunal (NCLT) on Wednesday issued notice to the CBI in the personal insolvency matter of Subhash Chandra and said the interim directive restraining the Essel Group Chairman from alienating property will continue until its final decision.

A five-member bench hearing Chandra’s personal insolvency matter was informed that a creditor has filed a complaint with the Central Bureau of Investigation (CBI), which is conducting its enquiry, though it is at a “nascent stage”.

On this, the bench headed by President A S Grewal said CBI will have to respond, noting that this may have a ‘bearing’ on this case.

“We have been informed that CBI is investigating a matter which has a bearing on the instant case. We deem it

appropriate to issue notice to the CBI,” the bench said. “ It(CBI) may file its response within four weeks,” the bench said further.

Moreover, the bench also clarified that the “interim directions issued on the September 1, 2026 shall continue till the final disposal of the case.”

However, counsel for Chandra opposed this move, contending that the CBI is not a necessary party to the present proceedings.

Moreover, Chandra’s lawyer also questioned the formation of a special 5-member bench by the tribunal, contending that it is not an appellate court.

The bench also expressed its concerns over the lack of its bench strength and said that hearing the matter in its current form could affect its functioning

The bench asked parties, including creditors, who are parties in this matter, to file a convenient compilation before the next date of hearing.

The CBI has registered an FIR against Subhash Chandra for allegedly inflating his net worth to avail loans from the Life Insurance Corporation Housing Finance Limited (LICHFL) and then becoming a defaulter, causing a loss of more than Rs 1,322 crore to the public-sector lender.

In its complaint, now part of the FIR, LICHFL alleged that Chandra submitted net-worth certificates used to secure approval and disbursal of two loans totalling Rs 980 crore.

LICHFL was one of the lenders that approached NCLT opposing a recent repayment plan allowing creditors to recover only about Rs 6.5 crore from Chandra’s personal estate against claims of Rs 22,006 crore.

Earlier in the day, Subhash Chandra moved insolvency appellate tribunal NCLAT against the order of a five-member bench of the National Company Law Tribunal (NCLT), which had barred him alienating of his assets during the pendency of the matter.

He has also questioned the formation of a five-member bench by the NCLT.

Earlier in NCLT, a two-member bench delivered a split verdict on Chandra’s personal insolvency resolution process.

While Member (Judicial) Ashok Kumar Bhardwaj approved the Rs 6.5 crore repayment plan submitted by Chandra and held that he was eligible to seek relief under the insolvency framework for personal guarantors, Member (Technical) Reeta Kohli disagreed and rejected the proposal, leading to a reference under Section 419(5) of the Companies Act, 2013.

The matter was subsequently placed before Nilesh Sharma, Member (Judicial), as the third member to decide the points of difference.

Sharma concurred with Bhardwaj on the key issues and upheld Chandra’s repayment plan, under which claims of around Rs 22,006 crore arising from personal guarantees were proposed to be settled for about Rs 6.5 crore.

However, the operation of Sharma’s order was later stayed by a five-member NCLT bench, which also restrained Chandra from alienating his assets pending further proceedings.

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