16 hrs ago
NCLT halts Subhash Chandra asset sale amid lender challenge
A tribunal stopped Subhash Chandra from selling or transferring his property for now.
Banks are arguing about how much money he should repay.
One plan would let lenders recover about Rs 6.5 crore from claims of roughly Rs 22,006 crore.
Ten lenders supported the plan.
Other lenders said the recovery would be far too small.
Chandra said the larger figure was not money he personally borrowed.
He said the claims came from guarantees for loans taken by Essel Group companies.
The case may also be considered by an appeals tribunal.
The NCLT barred Essel Group chairman Subhash Chandra from directly or indirectly alienating his properties.
The disputed settlement would allow creditors to recover about Rs 6.5 crore against claims of roughly Rs 22,006 crore.
Ten banks and lenders supported the proposal, while HDFC Bank, LIC Housing Finance and Canara Bank opposed it.
Chandra said the Rs 22,006-crore figure involved company-loan guarantees, placing personal guarantee claims at about Rs 3,990 crore.
The matter is also before the NCLAT after a split NCLT verdict and challenges from dissenting lenders.
- Who
- Subhash Chandra, Essel Group lenders, the NCLT and the NCLAT are involved.
- What
- The NCLT barred Chandra from alienating properties while lenders challenge a personal-guarantee settlement.
- Where
- The proceedings are before the National Company Law Tribunal and the National Company Law Appellate Tribunal.
- When
- The NCLT issued the direction on Tuesday; the matter was to be listed on Wednesday for the next step on the appeal.
- Why
- Dissenting lenders challenged a proposed recovery of about Rs 6.5 crore against claims of roughly Rs 22,006 crore and sought greater scrutiny of Chandra's net worth.
Lenders Supporting Settlement
Dissenting Lenders
Settlement amount
Lenders Supporting Settlement
Ten banks and lenders supported allowing recovery of about Rs 6.5 crore under the proposed settlement.
Dissenting Lenders
HDFC Bank, LIC Housing Finance and Canara Bank argued that recovering about Rs 6.5 crore against roughly Rs 22,006 crore in claims would be negligible.
Nature of the claims
Lenders Supporting Settlement
Chandra maintained that the Rs 22,006-crore figure did not represent money he personally borrowed and that personal guarantee claims were about Rs 3,990 crore.
Dissenting Lenders
The dissenting lenders continued challenging the settlement and sought greater scrutiny of Chandra's declared net worth.
Tribunal proceedings
Lenders Supporting Settlement
A third NCLT member allowed recovery of around Rs 6.5 crore from Chandra's personal estate after a two-member bench issued a split verdict.
Dissenting Lenders
Dissenting lenders challenged the outcome, and the NCLT said there was no majority view among the five-member special bench; the matter also reached the NCLAT.
Key facts
- Proposed recovery
- About Rs 6.5 crore
- Claims cited by lenders
- Roughly Rs 22,006 crore
- Personal guarantee claims cited by Chandra
- About Rs 3,990 crore
- Supporting lenders
- Ten banks and lenders
- Dissenting lenders
- HDFC Bank, LIC Housing Finance and Canara Bank
- NCLT direction
- Chandra cannot alienate his properties directly or indirectly
- Net worth figures cited by dissenting lenders
- About Rs 40,600 crore in 2018 and Rs 45,900 crore in 2017
Quotes
NCLT special bench
Five-member National Company Law Tribunal bench hearing the lender challenge
“Let notice be issued to all the parties”
thehansindia.com
Sources
Related news
NCLT Stays Subhash Chandra’s Repayment Plan, Bars Asset Sales
Lenders Challenge NCLT Approval of Subhash Chandra Repayment Plan
NCLT Stays Subhash Chandra Repayment Plan, Orders Fresh Hearing
NCLAT to Hear Creditors’ Challenge to Chandra Repayment Plan
HDFC Bank Weighs NCLAT Appeal Over Subhash Chandra Debt Settlement
Lenders Challenge NCLT Approval of Subhash Chandra Repayment Plan
Major Banks Cut FCNR Deposit Rates After Subsidy Ends
Uber Driver Returns ₹37,000 Sent by Mistake, Refuses Reward
ICICI Bank Nears HDFC Bank as Nifty’s Top Influence
Brokerages Suggest HDFC Bank, PB Fintech, Parag Milk Foods
Subhash Chandra Challenges NCLT Bench as NCLAT Appeal Waits
