Overview
- A five‑member NCLT bench stayed the August 25 order on Tuesday and barred Subhash Chandra from selling or transferring assets while it re‑hears the matter.
- The blocked plan would have let creditors recover about ₹6.25–6.5 crore against roughly ₹22,006 crore of admitted claims, a cut of around 99.9 percent.
- The case reached the larger bench after an earlier two‑member NCLT division produced a split verdict and a third member, Nilesh Sharma, approved the plan on August 25.
- Major lenders including LIC Housing Finance, HDFC Bank, Canara Bank and Union Bank challenged the third‑member order and have appeals pending at the NCLAT, which listed the matter for October 7, while the NCLT put the next hearing on September 23.
- The dispute centers on whether the admitted claims are Chandra’s personal debt or arise from guarantees, plus allegations of improper claim admission and concentrated voting that together could set a precedent on guarantor liability and creditor voting in personal insolvency cases.