Subhash Chandra Repayment Plan Hearing Could Bring NCLT Functioning To “Standstill”: NCLT President, Amid Member Shortage

The Delhi bench of the National Company Law Tribunal (NCLT) at Delhi on Wednesday orally remarked that the tribunal's functioning could come to a “standstill” if it had to hear the repayment plan proposed by Essel Group Chairman Subhash Chandra during regular court hours, amid the need for more Members.

“I think we are likely to get more Members; otherwise, if we start hearing this during the Court time, the functioning of NCLT would come to a standstill,” NCLT President Justice Anupinder Singh Grewal remarked while hearing the matter before a five-member Special Bench.

The Special Bench comprises Justice Grewal, Judicial Members Bachu Venkat Balaram Das and Mahendra Khandelwal, and Technical Members Atul Chaturvedi and Ravindra Chaturvedi. The matter concerns proceedings against Chandra as a personal guarantor and was heard in the case filed by Indiabulls Housing Finance Ltd.

During Wednesday's hearing, the bench also took note of an ongoing investigation by the Central Bureau of Investigation (CBI), observing that it “may have a bearing” on the case.

It consequently directed the Resolution Professional to serve notice on the CBI and allowed the agency four weeks to file its response.

The Bench further directed that the interim directions issued on September 1 would continue until the final disposal of the case. The matter has been listed along with several connected applications on November 19 for arguments.

Chandra's repayment plan proposes payment of ₹6.25 crore against admitted claims of ₹22,006.57 crore, besides ₹25 lakh towards insolvency process costs.

The plan was initially considered by an NCLT Bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri. The two Members delivered dissenting judgments on September 3, 2025.

Following the difference of opinion, the matter was referred to Nilesh Sharma, Member (Judicial), NCLT Mumbai Bench, as the third Member. Sharma approved the repayment plan in his order dated August 25, 2026.

When the matter returned to the original Bench on August 31 for passing the consequential order, it held that no majority view had emerged. The matter was consequently referred to the NCLT President under Section 419(5) of the Companies Act, 2013.

The NCLT President then constituted the five-member Special Bench to consider the issue. It was the first time such a large Bench had been constituted at the NCLT for hearing a matter.

The Special Bench stayed the approval of the repayment plan on September 1.

The development comes days after the Supreme Court directed the Centre to file a status report on the basic amenities available at the NCLT's Principal and regional Benches and identify facilities urgently required.

The directions were passed while hearing a suo motu case concerning delays in approval of resolution plans pending before various NCLT Benches under the Insolvency and Bankruptcy Code.

During the hearing, counsel submitted that NCLT Benches were being forced to sit “off table” and said the issue required urgent intervention. Counsel also submitted that 18 more vacancies could arise over the next year due to retirements and urged the Supreme Court to consider allowing retiring Members to continue until their replacements were appointed.