NCLT Approves Subhash Chandra's Personal Insolvency Repayment Plan of ₹6.5 Crore Against ₹22,006.57 Crore Claims

The National Company Law Tribunal (NCLT) on Wednesday permitted Zee Group Founder and Chairman Subhash Chandra's revision plan to pay ₹6.5 crore against admitted claims totaling ₹22,006.57 crore. The ruling provides creditors with a recovery of approximately 0.03 per cent of their admitted dues.

The order was delivered by Nilesh Sharma, the third judicial member of the insolvency court, to settle the repayment plan in a personal insolvency matter initiated by Indiabulls Housing Finance, where Chandra served as the personal guarantor.

Following the decision, Sharma directed the consequential redistribution of the repayment amount among the remaining eligible creditors in accordance with the approved repayment plan. The matter is now scheduled to be placed before the Original Division Bench to pass final orders reflecting the majority opinion.

The court's order noted, "The Resolution Professional, in my opinion, is required to prepare and place on record the revised and final list of creditors after giving effect to the aforesaid exclusions and take necessary consequential steps for redistribution of the approved Repayment Plan value."

The tribunal addressed various issues, including allegations of grave and material irregularities stemming from the repayment plan's conduct, alongside potential breaches of the Insolvency and Bankruptcy Code (IBC) and associated rules and regulations.

Addressing these concerns, Sharma stated that the NCLT is not bound to reject the plan solely due to procedural lapses or irregularities in the admission of claims concerning Anil Kumar, Sunil Jain, and the individuals they represented. The court concluded that no other established material irregularities or violations of the Code or applicable regulations were found.

"In the present case, the creditors’ objections have been placed before this AA and independently considered on the merits. Therefore, unless the alleged irregularities render the Plan contrary to the IBC or materially prejudice the creditors, they do not, by themselves, warrant rejection under Section 114(1)," the order noted.

"This NCLT ruling in the personal insolvency case highlights the complex realities of debt recovery and guarantor liabilities under the framework of the Insolvency and Bankruptcy Code. With creditors recovering a fraction of the admitted dues, this case underscores the critical importance of evaluating personal guarantees and risk exposure in corporate financing. It also demonstrates how judicial authorities weigh procedural objections against statutory provisions when deciding on approved repayment plans." — Dr. Shishir Gupta, Founder & CEO, StartupLanes