Archive · 28 Aug 2026
Subhash Chandra Settlement Draws Appeals Over 99.97% Haircut
The National Company Law Tribunal’s order imposed a 99.97% haircut on lenders’ claims.
The tribunal assessed Subhash Chandra’s personal estate as worth far less than the admitted claims.
It concluded creditors were unlikely to recover more through bankruptcy proceedings.
The NCLT said its role was not to replace creditors’ commercial judgment with its own.
The settlement has triggered appeals and criticism over the scale of the haircut.
- Who
- Subhash Chandra, his lenders, and the National Company Law Tribunal.
- What
- The NCLT approved a settlement resulting in a 99.97% haircut for lenders.
- Why
- The tribunal assessed that Chandra’s personal estate was worth substantially less than the admitted claims and that bankruptcy proceedings were unlikely to produce a better recovery.
- Tribunal
- National Company Law Tribunal (NCLT)
- Settlement impact
- Lenders faced a 99.97% haircut.
- Asset assessment
- Subhash Chandra’s personal estate was assessed as worth significantly less than the admitted claims.
- Recovery assessment
- The tribunal found creditors were unlikely to recover more through bankruptcy proceedings.
- Tribunal role
- The NCLT said it would not substitute its own commercial wisdom for that of creditors.
- Reaction
- The decision triggered appeals and criticism.