₹22,000 Cr Insolvency Case: NCLT Stays Approval of Subhash Chandra's ₹6.5 Cr Repayment Plan

In a dramatic twist in the personal insolvency proceedings of Zee Group founder Subhash Chandra, a newly constituted five-member bench of the National Company Law Tribunal on Tuesday stayed the operation of its August 25 verdict that had approved his ₹6.5-crore repayment plan against admitted claims of ₹22,006.57 crore.

The bench, reportedly headed by NCLT President Justice (retd) Anupinder Singh Grewal, observed that no clear majority view existed among the previous judicial members who evaluated the proposal, reported Bar and Bench. 

Deciding to hear the high-stakes case afresh, the tribunal issued formal notices to all stakeholders and explicitly restrained Chandra from selling, transferring, encumbering, or alienating any of his personal assets, directly or indirectly, while proceedings remain pending.

Fractured Opinions Force Re-examination

The decision to constitute the expanded bench came after a two-member tribunal comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri held on August 31 that no definitive order could be implemented. The split originated in September 2025, when Bhardwaj favoured approving the plan strictly for consenting creditors, while Puri sought a total rejection over procedural lapses.

When referred to a third member, Judicial Member Nilesh Sharma, an August 25 order was issued approving the plan for all creditors universally, subject to minor claim redistributions. However, the original bench determined that Sharma had delivered a distinct third stance rather than creating a legal majority, effectively stalling the proceedings.

Astronomical Gap Drives Creditor Pushback

Chandra's personal insolvency proceedings stem from personal guarantees he extended for corporate loans taken by Essel Group entities, rather than direct personal borrowings. Financial institutions led by Indiabulls Housing Finance Limited and LIC Housing Finance have mounted fierce legal resistance to the proposal, which offers to settle over ₹22,000 crore in liabilities for a fraction of a percent of the total debt.

Solicitor General Tushar Mehta, appearing for institutional lenders, had previously warned that letting the August 25 approval stand would set a dangerous precedent and defeat the fundamental principles of the Insolvency and Bankruptcy Code. The five-member bench which also includes Judicial Members Bachu Venkat Balaram Das and Mahendra Khandelwal alongside Technical Members Atul Chaturvedi and Ravindra Chaturvedi will now hear comprehensive arguments from all sides to deliver a final, binding determination.