In a setback to Essel Group founder Subhash Chandra, a five-member special bench of the National Company Law Tribunal (NCLT) has stayed the operation of an August 25 order that allowed him to settle his personal insolvency proceedings by paying creditors ₹6.25 crore against admitted claims of ₹22,006.57 crore.
The special bench, comprising NCLT President Justice (retd) Anupinder Singh Grewal, Judicial Members Bachu Venkat Balaram Das and Mahendra Khandelwal, and Technical Members Atul Chaturvedi and Ravindra Chaturvedi, also restrained Chandra, acting as a personal guarantor, from alienating, selling, transferring or otherwise disposing of his properties, either directly or indirectly.
The tribunal issued notices to all parties and decided to rehear the matter, observing that there was no clear majority view in the earlier proceedings.
The development follows the NCLT’s August 25 order approving Chandra’s repayment plan, under which creditors were to receive approximately ₹6.25 crore against admitted claims of more than ₹22,000 crore. The substantial gap between the amount owed and the proposed recovery had drawn significant attention to the case.
The August 25 decision came after a split verdict by a two-member NCLT bench was referred to a third member for resolution. The repayment plan had secured 80.814% of the voting share, while banks opposing it represented 19.186%.
Chandra’s personal insolvency proceedings were initiated in 2024 following a petition filed by Indiabulls Housing Finance. The proceedings stem from personal guarantees provided by Chandra for borrowings raised by companies associated with the Essel Group.
The insolvency proceedings against Chandra are separate from the corporate insolvency proceedings involving Essel Group companies as well as regulatory matters concerning Zee Entertainment Enterprises.
