NCLT Halts Subhash Chandra’s Rs 6.25 Cr Insolvency Pay Order
By Business Desk
The NCLT has temporarily halted its order allowing Zee Group founder Subhash Chandra to settle a Rs 6.25 crore insolvency case amidst differing opinions.
The National Company Law Tribunal (NCLT) has temporarily halted its previous order that permitted Zee Group founder Subhash Chandra to resolve his personal insolvency case. This decision pauses his proposed payment of Rs 6.25 crore against admitted claims totaling Rs 22,006.57 crore.
A five-member special bench has stayed the NCLT’s original August 25 order. This new directive also explicitly prohibits Chandra from selling any of his properties, either directly or indirectly, during the ongoing proceedings.
Understanding the NCLT’s Intervention
The NCLT initiated this re-evaluation due to differing opinions among the original two-member bench and a third member involved in the case. This lack of a clear majority view on the repayment plan necessitated the special bench’s intervention to rehear the entire matter.
Insolvency proceedings against Chandra were initially launched by Indiabulls Housing Finance. The disparity between the admitted claims and the proposed settlement amount had previously drawn significant attention.
Key Financial Figures in the Case
- Proposed payment by Chandra: Rs 6.25 crore
- Additional amount for insolvency process costs: Rs 25 lakh
- Total admitted claims against Chandra: Rs 22,006.57 crore
These substantial claims stem from Chandra’s personal insolvency proceedings as a guarantor for loans taken by various companies associated with the Essel Group. Importantly, these are not claims from his personal borrowings.
Essel Group’s Financial Context
Chandra has previously stated that the Essel Group faced a financial crisis in 2019, with total liabilities then approximately Rs 45,000 crore. He noted that around Rs 43,000 crore has since been repaid, partly through the sale of family assets, including his personal residence.
The August 25 approval for the repayment plan is now inactive, with the special bench set to reconsider the full details. Chandra remains restricted from alienating any property as notices have been issued to all parties involved, with the ultimate approval of the repayment plan to be decided in future hearings.