Overview
- A five‑member NCLT bench on Tuesday stayed the August 25 order that approved a repayment plan and barred Subhash Chandra from selling or transferring any property while it hears the matter afresh.
- The August 25 plan would have let Chandra pay about Rs 6.2–6.5 crore against roughly Rs 22,006 crore of admitted claims, a proposed reduction of about 99.9 percent that prompted strong opposition from several lenders.
- The case has been driven by procedural splits: an original two‑member bench issued divided views, a third member issued an independent order, and the lack of a clear majority led to the current five‑member reference.
- The third member had excluded claims filed through two intermediaries and ordered those amounts redistributed, a move that dissenting banks have challenged and taken on appeal to the NCLAT.
- The tribunal set a fresh hearing for September 23 and the outcome could shape how India treats personal guarantees, creditor voting and claim verification in future personal‑insolvency cases.