National Company Law Tribunal (NCLT) president Anupinder Singh Grewal on August 31 formed a five-member bench headed by himself to hear Indiabulls Housing Finance’s insolvency plea against Subhash Chandra involving guarantees offered by him to lenders. The bench will hear the case on September 1. On the same day, the National Company Law Appellate Tribunal (NCLAT) will hear the appeal against the NCLT order that approved a Rs. 6.25 crore payment by Subhash Chandra over creditor claims of Rs. 22,006 crore.
LIC Housing Finance mentioned the matter before an NCLAT bench and sought urgent hearing, saying that if the order was allowed to continue, it would defeat the very purpose of the Insolvency & Bankruptcy Code.
Earlier, in NCLT, the matter was referred to the third member as the two-member division bench gave a split verdict on the repayment plan. The third member’s order of August 26, backing the repayment plan, has been sent back to the original division bench for a formal order in line with the majority opinion. However, the two-member bench on August 31 said that no majority view had emerged despite reconsidering the matter, following a differing opinion from a third member of the Tribunal, and referred it back to the NCLT president.