Overview
- The NCLT said no majority view emerged from its three-member panel on Monday and constituted a five-member special bench to rehear whether to approve Subhash Chandra’s repayment plan.
- The plan that was under challenge proposed paying ₹6.25 crore to creditors plus ₹25 lakh in costs against admitted claims of about ₹22,006.57 crore, implying roughly a 0.03% recovery for creditors.
- Dissenting lenders say five entities linked to Chandra’s family supplied 61.78% of the decisive votes and should have been disqualified as associates, a claim the NCLT must now examine.
- Creditors including Canara Bank, Union Bank of India, LIC Housing Finance and HDFC Bank have moved urgently to the NCLAT and secured an appellate hearing scheduled for September 1 to seek relief.
- The resolution professional valued Chandra’s disclosed personal assets at about ₹31.79 crore and the NCLT previously declined calls for a forensic audit, a finding that will factor into the wider debate over guarantor cases and lender recovery prospects.