₹6.25 Crore Payback Plan for Subhash Chandra Under Fresh Scrutiny
What Happened
The National Company Law Tribunal (NCLT) has referred Essel Group founder Subhash Chandra's personal insolvency case to a newly constituted five-member bench after no clear majority emerged on his proposed ₹6.25 crore repayment plan against admitted creditor claims of about ₹22,006 crore. The larger bench will now decide whether the repayment plan can be approved and whether it would be binding on creditors who opposed it.
Key Takeaways
The case remains unresolved despite an earlier opinion supporting the plan. With creditors challenging what amounts to a nearly 99.97% haircut, the five-member NCLT bench's decision could become an important precedent for personal insolvency cases involving guarantors under the Insolvency and Bankruptcy Code (IBC).