Archive · 31 Aug 2026
NCLAT to Hear Creditors’ Challenge to Chandra Repayment Plan
Subhash Chandra guaranteed loans taken by companies linked to the Essel Group.
A tribunal approved a plan requiring him to pay ₹6.5 crore.
Creditors would receive ₹6.25 crore, while ₹25 lakh would cover insolvency costs.
The admitted claims in the case total about ₹22,006.57 crore.
Several lenders say the proposed payment is far too small.
They also say five companies connected to Chandra should not have been allowed to vote.
Those votes helped the plan receive about 80.81% approval.
A higher tribunal will now examine whether the approval and voting process were proper.
Chandra says the large claims represent corporate loans he guaranteed, not money he personally borrowed.
NCLAT will hear creditors’ challenge to the NCLT’s approval of Subhash Chandra’s repayment plan on September 1.
The plan proposes ₹6.5 crore, including ₹6.25 crore for creditors and ₹25 lakh for insolvency-process costs.
The plan covers admitted claims of approximately ₹22,006.57 crore linked to Chandra’s personal guarantees for corporate borrowings.
Creditors argue five entities linked to Chandra should not have voted, helping the plan secure about 80.81% approval.
Chandra says the claims are not money personally borrowed by him and that lenders opposing the plan claim about ₹3,992 crore.
- Who
- Subhash Chandra, creditors including HDFC Bank, Canara Bank, Union Bank of India (UK) and LIC Housing Finance, and the National Company Law Appellate Tribunal.
- What
- NCLAT agreed to hear creditors’ challenge to the NCLT’s approval of Chandra’s ₹6.5-crore repayment plan.
- When
- The hearing is scheduled for September 1. Reports give the hearing time as 10:00 a.m. or 10:30 a.m.
- Where
- Before the National Company Law Appellate Tribunal; the challenged order was issued by the NCLT Delhi bench.
- Why
- Creditors say the payout is inadequate and that five allegedly associated entities should not have voted on the plan.
Dissenting creditors
Subhash Chandra and NCLT reasoning
Adequacy of the payout
Dissenting creditors
Creditors say ₹6.25 crore against admitted claims of about ₹22,006.57 crore would produce a negligible recovery and an approximately 99.97% haircut.
Subhash Chandra and NCLT reasoning
Chandra says the ₹22,000-crore figure should not be described as money personally borrowed by him because it concerns guarantees for corporate borrowings. He says the group remains committed to settling outstanding obligations.
Eligibility to vote
Dissenting creditors
HDFC Bank, IDBI Trusteeship Services and other lenders argue that Veena Investments, Direct Media Distribution Ventures, World Crest Advisors, Lemonade Capital Advisors and Corpcall Capital Advisors were associates or related parties and should not have voted.
Subhash Chandra and NCLT reasoning
The NCLT approved the plan after finding that the required majority supported it. The tribunal said creditors had participated in the process without establishing sufficient prejudice and that it should not replace the majority’s commercial assessment.
Nature and scale of the claims
Dissenting creditors
Lenders point to admitted claims of approximately ₹22,006.57 crore and say the proposed recovery represents almost the entire amount being written off.
Subhash Chandra and NCLT reasoning
Chandra and government officials said the claims arise from guarantees for loans taken by Essel Group- and Zee Group-linked companies, rather than personal borrowing. Chandra said lenders opposing the plan have claims of about ₹3,992 crore.
- Total proposed payment
- ₹6.5 crore
- Payment to creditors
- ₹6.25 crore
- Insolvency-process costs
- ₹25 lakh
- Admitted claims
- Approximately ₹22,006.57 crore
- Committee approval
- 80.814% voting share, according to the NCLT order
- NCLT approval date
- August 25
- Estimated recovery
- About 0.03%, or roughly three paise per ₹100 of admitted claims
- HDFC Bank’s expected recovery
- About 3.2% of its total claim under the plan
Sources
Subhash Chandra insolvency: NCLAT to hear creditors' appeal against NCLT approval of ₹6.5 crore payout plan
Subhash Chandra Loan Controversy - NCLAT To Hear Creditors Plea On Tuesday
NCLAT to hear creditors' plea challenging Subhash Chandra’s repayment plan
