The tribunal seeks clarity on a creditor’s complaint and CBI inquiry, while continuing its interim restraint on Subhash Chandra from alienating property.
New Delhi (Economy India): The National Company Law Tribunal (NCLT) on Wednesday issued a notice to the Central Bureau of Investigation (CBI) in the personal insolvency proceedings involving Essel Group Chairman Subhash Chandra, seeking clarity on a complaint filed against him.
A five-member NCLT bench hearing Chandra’s personal insolvency matter was informed that a creditor had approached the CBI with a complaint and that the agency has initiated an inquiry.
The tribunal was told that the CBI inquiry is currently at a “nascent stage.”
NCLT Seeks CBI’s Response
Taking note of the CBI inquiry, the bench headed by NCLT President A S Grewal said the investigating agency would need to respond to the tribunal.
The bench observed that the complaint and the CBI inquiry could have a “bearing” on the insolvency proceedings.
The notice seeks clarity from the CBI regarding the nature and status of the complaint and the inquiry being conducted by the agency.
Property Restraint Order to Continue
The NCLT also indicated that its interim direction restraining Subhash Chandra from alienating property will remain in force until the tribunal reaches a final decision in the matter.
The direction prevents the disposal or transfer of assets covered by the tribunal’s order while the personal insolvency proceedings remain under consideration.
The continuation of the interim measure means the status of the concerned assets will remain subject to the tribunal’s directions during the proceedings.
Personal Insolvency Proceedings
The matter relates to personal insolvency proceedings involving Subhash Chandra, who is the chairman of the Essel Group.
The NCLT is examining the matter under the framework of India’s insolvency law. The tribunal’s latest direction to seek information from the CBI adds an investigative dimension to the proceedings.
The CBI inquiry itself is understood to be at an early stage, and the tribunal’s notice does not by itself establish any wrongdoing. The agency’s response will help the NCLT determine whether the complaint or its investigation has a bearing on the insolvency matter.
CBI Response Awaited
The NCLT’s decision to seek a response from the CBI reflects the tribunal’s approach to obtaining clarity on information that could potentially affect the proceedings.
The interim restraint on property alienation will continue until the tribunal takes a final decision, while the CBI’s response is expected to provide further clarity on the complaint and the status of its inquiry.
(Economy India)
