5 days ago
Subhash Chandra disputes Rs 22,000 crore personal insolvency claims
Subhash Chandra is involved in a personal insolvency case.
He says he guaranteed loans for other companies but did not personally borrow the money.
He says the claims against him total Rs 3,992 crore, not Rs 22,000 crore.
One claim worth Rs 620 crore has already been settled.
The borrowing companies have also offered to pay another Rs 1,063 crore.
The National Company Law Tribunal approved a plan requiring Chandra to pay Rs 6.5 crore for admitted claims.
Some creditors disagreed and said the proposed payment was too small.
The tribunal said accepting the plan could give creditors a better chance of recovering money from the companies that originally borrowed it.
Subhash Chandra said personal insolvency claims against him total Rs 3,992 crore, not Rs 22,000 crore.
Chandra said he provided personal guarantees but did not borrow money from lenders.
A Rs 620 crore claim has been settled, while borrowing entities offered an additional Rs 1,063 crore.
The NCLT approved a plan requiring Chandra to pay Rs 6.5 crore toward admitted creditor claims.
The NCLT said resolving Chandra’s insolvency could improve creditors’ chances of recovering money from principal debtors.
- Who
- Media baron Subhash Chandra, dissenting creditors led by LIC Housing Finance, and the National Company Law Tribunal.
- What
- Chandra clarified that personal insolvency claims total Rs 3,992 crore, while the NCLT approved a Rs 6.5 crore settlement plan.
- Where
- In proceedings before the National Company Law Tribunal.
- When
- Chandra issued his statement on Thursday; the NCLT’s third-member ruling was issued on Tuesday.
- Why
- Chandra sought to clarify the amount and nature of the claims, while the NCLT found that approving the plan could improve creditors’ recovery prospects.
Subhash Chandra and NCLT position
Dissenting creditors’ position
Size of the liability
Subhash Chandra and NCLT position
Chandra said the personal insolvency claim against him is Rs 3,992 crore, not Rs 22,000 crore, and that he was a guarantor rather than a borrower. The NCLT considered a plan based on the admitted claims and Chandra’s personal estate.
Dissenting creditors’ position
Dissenting creditors, led by LIC Housing Finance, referred to admitted claims of approximately Rs 22,006.57 crore.
Proposed creditor payment
Subhash Chandra and NCLT position
The NCLT approved a plan under which Chandra would pay Rs 6.5 crore, including the amount directed toward admitted claims and process costs.
Dissenting creditors’ position
Dissenting creditors argued that the proposed payout was too low, describing it as unviable and unlawful.
Effect of approving the plan
Subhash Chandra and NCLT position
The NCLT said resolving Chandra’s insolvency could put him in a position to recover financially and give creditors a better chance of recovering debts from the principal debtors.
Dissenting creditors’ position
The dissenting creditors argued that rejecting the plan was appropriate because the proposed recovery was inadequate.
Key facts
- Claim disputed by Chandra
- Rs 3,992 crore, which he identified as the total personal-guarantee claim
- Claim cited by dissenting creditors
- Approximately Rs 22,006.57 crore in admitted claims
- Settled claim
- Rs 620 crore
- Additional offer
- Borrowing entities offered a further Rs 1,063 crore
- Repayments by borrowing entities
- Rs 43,000 crore repaid to date
- NCLT-approved payment
- Rs 6.5 crore toward admitted creditor claims
- Next procedural step
- The matter will return to the original division bench for a formal order
Quotes
National Company Law Tribunal
The tribunal explaining its rationale for approving the resolution plan
“If the plan is approved and the debtor's insolvency is resolved, putting him back on his feet, the objectors would ultimately stand a better chance of recovering their debts directly from the Principal Debtors”
rediff.com
“Total claim against Subhash Chandra as a personal guarantor, in the personal insolvency proceedings, is only Rs 3,992 crore by the objectors of the plan and not Rs 22,000 crore.”
rediff.com
Sources
Related news
Subhash Chandra Disputes ₹22,000-Crore NCLT Insolvency Claim
Subhash Chandra Says Borrowers Will Settle ₹4,262 Crore Claims
Sources Clarify Subhash Chandra’s NCLT Claims, Reject ₹22,000 Crore Write-Off
NCLT Stays Subhash Chandra’s Repayment Plan, Bars Asset Sales
Reliance Rejects Chandra Allegations Amid Personal Insolvency Dispute
Subhash Chandra Challenges Five-Member NCLT Bench in Insolvency Case
Subhash Chandra Challenges Five-Member Bench in Insolvency Case
NCLT halts Subhash Chandra asset sale amid lender challenge
NCLT Deadlock Sends Subhash Chandra Debt Plan To Five-Member Bench
