Overview
- The NCLT on Tuesday stayed its August 25 order that had approved Subhash Chandra’s repayment plan, formed a five‑member special bench to rehear the matter, and barred Chandra from alienating any property while the case proceeds.
- The repayment plan proposed paying ₹6.25 crore to creditors and ₹25 lakh for process costs against admitted claims of about ₹22,006.57 crore, a recovery of roughly 0.03 percent.
- Several large lenders have filed or prepared urgent appeals to the National Company Law Appellate Tribunal, arguing the payout is inadequate and asking the court to overturn the NCLT’s earlier approval.
- Dissenting creditors say five entities they allege are linked to Chandra’s family provided decisive votes totalling about 61.78 percent and should have been disqualified; the entities named include Veena Investments and Direct Media Distribution Ventures.
- The case highlights procedural questions from split tribunal opinions and the limits of the personal‑guarantor route under the IBC, and it could prompt lenders to seek stricter audits, closer monitoring of guarantees, or changes in how personal guarantees are enforced.