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NCLAT Notices Creditors in Subhash Chandra Insolvency Appeal
Subhash Chandra is involved in a personal insolvency case because creditors say he owes them a very large amount of money.
He proposed paying creditors about ₹6.25–6.5 crore against claims of roughly ₹22,006 crore.
One NCLT member supported the plan, while another rejected it.
A third member later supported the plan on key issues.
A larger NCLT bench then put that decision on hold and restricted Chandra from transferring his assets.
Chandra has appealed that decision to the NCLAT.
The NCLAT has asked creditors and other respondents to explain their position.
It will hear arguments about temporary relief on October 29 and 30.
The creditors’ separate appeal against the repayment plan will be heard at the same time.
The NCLAT issued notice to creditors and other respondents on Subhash Chandra’s appeal against restrictions on transferring his assets.
The appellate tribunal scheduled arguments on Chandra’s interim relief applications for October 29 and 30.
Creditors’ separate challenge to Chandra’s repayment plan will be heard alongside his appeal.
Chandra’s plan proposed paying roughly ₹6.25–6.5 crore against admitted claims of about ₹22,006.57 crore.
The NCLAT directed creditors to reply within a week and gave Chandra one week to file a rejoinder.
- Who
- Essel Group Chairman Subhash Chandra, creditors, the Resolution Professional Shiv Nandan Sharma, and the NCLAT.
- What
- The NCLAT issued notice on Chandra’s appeal challenging the NCLT’s stay of his repayment-plan order and restrictions on alienating his assets.
- Where
- The proceedings are before the National Company Law Appellate Tribunal, after earlier hearings before the National Company Law Tribunal.
- When
- The NCLAT issued notice on Tuesday and scheduled the matter for October 29 and 30, 2026; the articles were published on September 29, 2026.
- Why
- Chandra is challenging the larger NCLT bench’s authority and its decision to stay the earlier repayment-plan ruling and restrain him from transferring assets.
Subhash Chandra’s Position
Creditors’ Position
Validity of the larger NCLT bench
Subhash Chandra’s Position
Chandra argues that the five-member NCLT bench’s September 1 order exceeded its statutory authority and has questioned how the bench was constituted.
Creditors’ Position
Creditors opposed the maintainability of Chandra’s appeal and are seeking to defend the NCLT proceedings.
Repayment plan
Subhash Chandra’s Position
Chandra relies on the repayment plan approved by the third NCLT member, which proposed settling approximately ₹22,006.57 crore in claims for about ₹6.25–6.5 crore.
Creditors’ Position
Creditors have filed a separate appeal challenging the repayment plan and its approval.
Timing of the appeal
Subhash Chandra’s Position
Chandra opposed waiting for the next NCLT hearing and is seeking interim relief from the NCLAT.
Creditors’ Position
Solicitor General Tushar Mehta, representing some creditors, suggested waiting for or taking account of the NCLT hearing scheduled for November 19 and requested detailed consideration of the appeals.
Key facts
- Appellate tribunal
- National Company Law Appellate Tribunal (NCLAT)
- Respondent deadline
- Creditors and other respondents were given one week to file replies.
- Chandra’s deadline
- Chandra was given one week to file a rejoinder.
- Next hearing
- October 29 and 30, 2026
- Proposed repayment
- Approximately ₹6.25–6.5 crore, with the articles giving slightly different figures.
- Admitted claims
- Approximately ₹22,006.57 crore
- Asset restriction
- The NCLT ordered that Chandra must not alienate assets directly or indirectly during the proceedings.
- Related NCLT hearing
- The five-member NCLT bench is scheduled to hear the matter on November 19.
Quotes
National Company Law Tribunal
The tribunal that imposed the asset-transfer restriction on Subhash Chandra during insolvency proceedings
“shall not alienate any assets whatsoever either directly or indirectly.”
livemint.com
Sources
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