NCLT sets up special bench to review Subhash Chandra repayment plan

The case concerns Subhash Chandra’s liability as a personal guarantor for loans taken by several Essel and Zee-linked companies.

Hours after an appeals court agreed to hear aggrieved lenders in the Subhash Chandra case, the National Company Law Tribunal (NCLT) formed a new five-member special bench to reconsider the Zee Group’s founder’s repayment plan. The Delhi bench of NCLT said its previous three-member bench which heard the plan could not agree on how it would operate.

Subhash Chandra said he had only provided personal guarantees for loans taken by companies associated with the Essel Group, not personally borrowing money. (HT Photo)

Five-member bench to hear matter

The five-member bench of NCLT president Justice Anupinder Singh Grewal; judicial members Bachu Venkat Balaram Das and Mahendra Khandelwal Das; and technical members Atul Chaturvedi and Ravindra Chaturvedi, will hear the matter on Tuesday.

The case concerns Chandra’s liability as a personal guarantor for loans taken by several Essel and Zee-linked companies.

Lenders move NCLAT against NCLT ruling

Earlier on Monday, creditors LIC Housing Finance, HDFC Bank and Union Bank of India had moved an urgent petition before the National Company Law Appellate Tribunal (NCLAT) against NCLT’s Friday ruling.

The NCLT clarified that there was no majority view on Chandra’s repayment plan. One member had favoured applying the repayment plan only to creditors who supported it, while allowing dissenting banks and financial institutions to pursue separate recovery proceedings. Another member held that the plan should apply to all creditors, including those who opposed it.

The tribunal said the two views had different consequences for the rights of dissenting creditors.

“All said and done, no majority view has emerged in the matter. In the wake, no order can be passed at this stage. Resultantly, we have no option but to make fresh reference to Hon’ble President in terms of the provisions of Section 419(5) of the Code,” the NCLT said.

Chandra’s ₹6.5-crore repayment plan

The latest twist comes days after the third member had approved Chandra’s repayment plan under which he would pay ₹6.5 crore. Of this, ₹6.25 crore would go towards creditors, while ₹25 lakh would be used to meet insolvency process costs.

The original claims in the case was about ₹22,006.57 crore. Mint first reported that Nilesh Sharma, who was included as the third member by the NCLT president in February 2026, had approved the repayment plan on 25 August. The plan ran into opposition, with HDFC Bank, Axis Bank, Canara Bank, RBL Bank and Union Bank of India voting against it. However, the plan received 80.81% support from creditors by value.