Archive · 1 Sep 2026
NCLT Stays Subhash Chandra Repayment Plan, Orders Fresh Hearing
A tribunal is deciding how Subhash Chandra should repay money connected to loans he guaranteed.
An earlier decision approved a plan that would pay creditors only about ₹6.2-6.5 crore.
The claims against him were reported at about ₹22,006.57 crore.
This would mean creditors receive only a very small part of the amount claimed.
Most voting creditors approved the plan, but several important lenders objected.
The original tribunal members disagreed, and a third member’s decision did not create a clear majority.
A new five-member bench has paused the earlier decision and will hear the case again.
Until then, Chandra cannot sell or transfer his properties directly or indirectly.
A newly constituted five-member NCLT bench stayed the earlier approval of Subhash Chandra’s repayment plan and ordered a fresh hearing.
Reports describe the plan as offering about ₹6.2-6.5 crore against admitted claims of approximately ₹22,006.57 crore, implying a nearly 99.97% haircut.
Creditors holding 80.814% of the voting share reportedly approved the plan, while several lenders opposed the proposed recovery and considered appeals.
The tribunal said no clear majority emerged after the original two-member bench split and a third member reviewed the dispute.
Chandra was barred from directly or indirectly transferring his properties, while the tribunal issued notices to him and the lenders.
- Who
- Subhash Chandra, the lenders and creditors in his personal insolvency case, and a five-member bench of the National Company Law Tribunal.
- What
- The NCLT stayed approval of Chandra’s repayment plan, issued notices, ordered a fresh hearing, and restricted transfers of his properties.
- When
- The fresh-hearing order was issued on Tuesday; the earlier repayment-plan decision was issued on August 25.
- Where
- Before the National Company Law Tribunal in New Delhi.
- Why
- The tribunal said no clear majority view emerged after conflicting opinions from the original members and a third member.
Plan Supporters
Plan Opponents
Whether the repayment plan should be approved
Plan Supporters
Nilesh Sharma held that the required creditor majority had approved the plan and that objections by some creditors did not by themselves make it unfit for approval.
Plan Opponents
Several lenders, including LIC Housing Finance, Union Bank of India and Canara Bank, argued that the proposed recovery was too small; Union Bank said it would challenge approval before the NCLAT and HDFC Bank was exploring an appeal.
Meaning of the claimed debt
Plan Supporters
Chandra said he did not personally borrow the money and acted only as a personal guarantor for loans taken by Essel Group-associated entities.
Plan Opponents
Creditors’ proceedings treated the claims as part of Chandra’s personal insolvency case, with admitted claims reported at approximately ₹22,006.57 crore.
Effect of unsupported claims
Plan Supporters
Sharma said claims involving 960 and 300 individuals should not have been admitted but held that the lapse did not adversely affect the entire insolvency process.
Plan Opponents
The tribunal’s reference to claims admitted on verbal assurances raised concerns about the reliability of the insolvency process and contributed to the continued dispute.
- Repayment offer
- Reports put the creditor payment at approximately ₹6.2-6.5 crore; one detailed account specifies ₹6.25 crore plus ₹25 lakh for process costs.
- Admitted claims
- Approximately ₹22,006.57 crore, although Chandra said ₹21,696 crore of claims were admitted.
- Estimated haircut
- Nearly 99.97%, with some reports describing it as approximately 99.9%.
- Creditor vote
- Creditors holding 80.814% of the voting share reportedly approved the plan.
- Original decision
- NCLT Judicial Member Nilesh Sharma approved the plan on August 25 after the original two-member bench delivered a split verdict.
- Property restriction
- Chandra, described as the guarantor, was restrained from alienating or transferring properties directly or indirectly.
- Proceedings origin
- Indiabulls Housing Finance initiated the insolvency proceedings in 2022 over a loan to Vivek Infracon; the plea was admitted in 2024.
- Disputed claims
- The tribunal noted claims involving 960 individuals through Anil Kumar and 300 through Sunil Jain that were admitted based on verbal assurances.
