Overview
- A three‑member NCLT order approved a repayment plan under Section 114 of the Insolvency and Bankruptcy Code that would have Subhash Chandra pay about Rs 6.25–6.5 crore against admitted claims totalling roughly Rs 22,006.57 crore.
- Creditors representing about 80.81% of the voting share backed the plan and the tribunal held an approved plan will bind all covered creditors under Section 115 of the IBC.
- The NCLT relied on the resolution professional’s valuation that Chandra’s recoverable personal estate is very limited and concluded that forcing personal bankruptcy could leave dissenting lenders worse off.
- Several large lenders including HDFC Bank and LIC Housing Finance have announced they are exploring appeals to the NCLAT and other remedies while the resolution professional must finalise a revised creditor list and return the case to the original bench for formal orders.
- The case has opened wider disputes over how personal guarantees are counted and enforced, conflicting admitted‑claim totals (Chandra’s camp says about Rs 3,992 crore) and separate planned recoveries from principal borrower companies of around Rs 1,494 crore, issues that could shape creditor rights under the IBC.