Overview
- The tribunal approved the repayment plan on Thursday, August 27, 2026, letting Chandra pay about Rs 6.5 crore against roughly Rs 22,006.57 crore of admitted claims, a haircut of about 99.97 percent.
- A split verdict from the original two-member NCLT bench led to appointment of Nilesh Sharma as a third member, who sanctioned the plan under Section 114 after accepting the resolution professional’s valuation and the creditor vote.
- Creditors representing 80.81 percent of the vote had approved the plan in November 2024, while dissenters led by LIC Housing Finance and banks including HDFC argued the payout was unviable and unlawful.
- The order applies Section 115 to bind all covered creditors to the approved plan, directs the resolution professional to finalise the creditor list and effect distribution, and sends the matter back to the original bench for a formal order.
- Major lenders are preparing appeals to the National Company Law Appellate Tribunal and the ruling has prompted political criticism and debate about IBC limits, creditor protections and the role of valuation in personal insolvency cases.