India Today spoke to legal experts to get an insight into the various legal issues and ramifications on Insolvency Law in India.
Also Read: ‘My borrowing is ₹0’: Subhash Chandra explains ₹22,000 crore personal guarantee controversy
Why a five-member bench?
NCLT normally functions through two-member benches. Section 419(5) of the Companies Act, 2013 provides a mechanism for dealing with a difference of opinion between members, including reference of the matter to another member.
In the Subhash Chandra case, the original two-member bench reportedly took divergent positions on the personal guarantor’s repayment plan. The matter was therefore referred to a third member. However, the third member gave an opinion that seemed to…