NOVELTY - Improved process for preparing 3-chloroiminodibenzyl (I) from 5-acetyl-3-nitroiminodibenzyl (III), comprises: e.g. (a) reducing (III) in alcohol in presence of metal catalyst under hydrogen pressure of 2-6 kg/cm2, at a temperature of 40-70 degrees C for 4-8 hours; (b) separating catalyst by filtration, concentrating formed filtrate, and adding water to obtain 5-acetyl-3-aminoiminodibenzyl (IV); (c) reacting (IV) with sodium nitrite in presence of hydrochloric acid in water at 0-15 degrees C; and (d) insitu reacting obtained diazonium salt solution with cuprous chloride and concentrated hydrochloric acid.    USE - The process is useful for preparing (I) (claimed), which is useful as an intermediate for preparing antidepressant drug clomipramine hydrochloride.    ADVANTAGE - The process: provides (I) with improved yield and purity; does not utilize the hazardous chemicals, hence it is environmentally friendly; and can easily be up-scaled and is cost effective.    DETAILED DESCRIPTION - Improved process for preparing 3-chloroiminodibenzyl of formula (I) from 5-acetyl-3-nitroiminodibenzyl of formula (III), comprises: (a) reducing (III) in an alcohol in presence of a metal catalyst under hydrogen pressure of 2-6 kg/cm2, at a temperature of 40-70 degrees C for 4-8 hours; (b) separating the metal catalyst by filtration, concentrating the formed filtrate, and adding water to obtain 5-acetyl-3-aminoiminodibenzyl of formula (IV) having gas chromatography (GC) purity of more than 98%; (c) reacting (IV) with sodium nitrite in presence of hydrochloric acid in water at a temperature of 0-15 degrees C to form a diazonium salt solution; (d) insitu reacting the diazonium salt solution with cuprous chloride and concentrated hydrochloric acid in presence of an organic solvent comprising a hydrocarbon, at 0-5 degrees C followed by heating the mixture to 50-55 degrees C for 10-60 minutes; (e) separating an organic layer, subjecting the organic layer to charcoalization, and concentrating to isolate crude 5-acetyl-3-chloroiminodibenzyl of formula (V) having GC purity of more than 90%; (f) purifying the crude (V) by recrystallization with an organic solvent to obtain (V) having GC purity of more than 98%; (g) hydrolyzing (V) with an aqueous alkali metal hydroxide in presence of n-butanol at a temperature of 100-110 degrees C for 4-6 hours under nitrogen atmosphere and subsequently followed by addition of water; (h) separating n-butanol layer from aqueous layer, concentrating the n-butanol layer followed by addition of water to isolate crude (I) having GC purity of more than 98%; (i) dissolving the crude (I) in an alcohol at 50-55 degrees C and charcoalizing the solution at reflux temperature to obtain a charcoalized solution; and (j) concentrating the charcoalized solution and isolating (I) having GC purity of more than 99% by addition of water.