‘Unfair media trial without order’: Dr Subhash Chandra’s legal team opposes constitution of 5-member NCLT bench
&imwidth=600&imheight=450&format=webp&quality=medium "‘Unfair media trial without order’: Dr Subhash Chandra’s legal team opposes constitution of 5-member NCLT bench")
The media narrative caused unfair reputational damage to Dr Subhash Chandra.
Appearing for Dr Chandra, Senior Advocate Sasmit Patra said the August 25 opinion approving the repayment plan had not crystallised into a final, enforceable NCLT order but led to a media trial that has tarnished Dr Chandra’s reputation across the country.
The legal team of Essel Group Chairman Dr Subhash Chandra told the National Company Law Appellate Tribunal (NCLAT) on Wednesday that a malicious media narrative was manufactured in the last 15 days over Rs 6.5 crore repayment proposal against creditors’ claims of Rs 22,006 crore even though there was no such final NCLT order in effect. The media narrative caused unfair reputational damage to Dr Chandra, the team said.
Appearing for Dr Chandra, Senior Advocate Sasmit Patra said the August 25 opinion approving the repayment plan had not crystallised into a final, enforceable NCLT order but led to a media trial that has tarnished Dr Chandra’s reputation across the country.
“The fact is that there is no order today standing in this matter. But for the last 15 days, the personal guarantor, Dr Subhash Chandra, has been vilified across this country, saying that only Rs 6.5 crore are being repaid against credit of Rs 22,000 crore,” Patra submitted before the NCLAT coram of Officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra.
The NCLAT observed that it was not passing any order on Patra’s submission and said Dr Chandra could raise his grievance before the National Company Law Tribunal (NCLT), where the insolvency proceedings are pending.
Contests constitution of 5-member NCLT bench
During the hearing, Patra also questioned the constitution of a 5-member NCLT bench to re-evaluate the repayment plan.
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He argued that Section 419(5) of the Companies Act, read with the Insolvency and Bankruptcy Code (IBC), does not empower the tribunal to form such a bench.
“The scope of Section 419(5) is very limited. If there is a differing view, then that differing view has to be taken up by another member or other members. It does not empower the NCLT under the IBC or company law to form a five-member Bench,” Patra submitted.
He also disputed the lenders’ contention that the three NCLT members who considered the repayment plan had completely divergent opinions.
Patra said that Judicial Members Ashok Kumar Bhardwaj and Nilesh Sharma had both favoured approval of the repayment plan and were aligned on the eligibility issue under Section 79 of the IBC, and differed only over the treatment of dissenting creditors.
“Both are equally on the same page as far as Section 79 is concerned on eligibility. Therefore, to say all these issues have to be re-litigated is completely wrong,” Patra argued.
Opposes lenders’ bid to withdraw appeals for now
Solicitor General Tushar Mehta, appearing for the appellant-lenders, initially sought to withdraw the lenders’ appeals with liberty to revive them if necessary. He said the appeals might no longer require immediate consideration since the 5-member NCLT bench had stayed the August 25 opinion and decided to hear the case afresh.
Also Read: NCLT case: Dr Subhash Chandra denies reports of Rs 22,000-crore loan, urges media to correct facts
Patra opposed the withdrawal of appeals with liberty to revive. He pointed out that the lenders’ appeals were defective because no final order had crystallised out of the August 25 opinion.
Following opposition from Dr Chandra’s counsel, Mehta decided not to press the withdrawal and requested that the appeals remain pending. The NCLAT agreed and listed them for October 7, 2026.
