The Subhash Chandra repayment plan has been stayed by the National Company Law Tribunal (NCLT), which will hear the personal insolvency case afresh. A five-member NCLT Bench stayed the August 25 order that had approved the repayment proposal submitted by Zee Group founder Subhash Chandra.
NCLT Stays Subhash Chandra Repayment Plan
The Subhash Chandra repayment plan proposed a payment of ₹6.25 crore to creditors against admitted claims of ₹22,006.57 crore. An additional ₹25 lakh was proposed to cover the costs of the insolvency process.
The five-member Bench observed that the earlier orders did not establish a clear majority view. It has therefore decided to reconsider the matter and issued notices to all parties involved.
The tribunal has also restrained Chandra from directly or indirectly alienating any property while the proceedings continue.
Why NCLT Reopened the Repayment Case
The repayment proposal was earlier heard by an NCLT Bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri. The two members delivered different views on the proposal.
Bhardwaj supported approval of the plan for creditors who had backed it. He also proposed allowing dissenting creditors, including banks and financial institutions, to pursue separate recovery measures.
Puri rejected the proposal and raised concerns over the process followed by the resolution professional. The difference of opinion led to the matter being referred to a third member under Section 419(5) of the Companies Act, 2013.
Third Member Approved Subhash Chandra Repayment Plan
On August 25, Judicial Member Nilesh Sharma ruled in favour of approving the Subhash Chandra repayment plan. However, he directed that certain claims submitted on behalf of hundreds of individuals should be excluded.
The amount allocated to those claims was ordered to be redistributed among other eligible creditors. Sharma also held that the approved plan would be binding on all creditors, including those who had opposed it, under Section 115 of the Insolvency and Bankruptcy Code.
The latest NCLT order has now put that decision on hold pending a fresh hearing.
Subhash Chandra Insolvency Case Dates Back to 2022
The insolvency proceedings against Chandra originated from a ₹170-crore loan extended by Indiabulls Housing Finance to Vivek Infracon. Chandra had provided a personal guarantee for the loan, which later became a bad debt.
The NCLT admitted the personal insolvency case in April 2024. Indiabulls Housing Finance was renamed Sammaan Capital Ltd in 2024.
Chandra had previously challenged the NCLT’s authority to hear insolvency cases involving individuals. The tribunal rejected his challenge in May 2022 and appointed a resolution professional.
IBC Proceedings Continue Against Chandra
Chandra subsequently approached the National Company Law Appellate Tribunal (NCLAT). The matter was closed after Indiabulls informed the appellate tribunal that a settlement had been reached.
The settlement was not completed. Following the Supreme Court’s November 2023 decision upholding the relevant provisions of the Insolvency and Bankruptcy Code, Indiabulls revived the insolvency proceedings in February 2024.
The latest NCLT order means the Subhash Chandra repayment plan will now be reconsidered, keeping the insolvency proceedings and claims of creditors under further review.
Source: Business Standard
