- NCLT approved Subhash Chandra's repayment plan with Rs 6.5 crore payout against Rs 22,006.57 crore claims
- The plan imposes a nearly 99.97% haircut on creditors in Chandra's personal insolvency case
- NCLT rejected objections from LIC Housing Finance-led lenders deeming the payout unviable and unlawful
The National Company Law Tribunal (NCLT) has approved a repayment plan submitted by Zee Group founder Subhash Chandra in his personal insolvency case, under which creditors will recover just Rs 6.5 crore against admitted claims of Rs 22,006.57 crore, a haircut of nearly 99.97%.
The order was passed by NCLT Member (Judicial) Nilesh Sharma, who was brought in as a third member to break a split verdict between two members of the tribunal's original bench. He approved the plan under Section 114 of the Insolvency and Bankruptcy Code (IBC), rejecting objections from a group of lenders led by LIC Housing Finance, who had called the proposed payout "unviable and unlawful."
The tribunal held that once approved, the plan would bind all creditors under Section 115 of the IBC, including those who had voted against it.
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The case originated from a personal guarantee Chandra gave on a Rs 170-crore loan extended to Vivek Infracon, which later turned bad. Indiabulls Housing Finance, now renamed Sammaan Capital, moved the NCLT in 2022, and the tribunal admitted the insolvency plea against Chandra in April 2024.
The matter will now go back to the original division bench of the NCLT, which is expected to pass a formal order in line with the majority view under Section 419(5) of the Companies Act.
Mallya Weighs In: "Indian Debt Resolution Justice, I Presume"
Reacting to the order on X, former liquor baron Vijay Mallya congratulated Chandra, drawing a pointed comparison with his own case. Mallya said banks and the government have claimed recovery of Rs 14,100 crore from him against a judgment debt of Rs 6,203 crore, well over double the original amount, and suggested many other borrowers have settled "at a fraction." He signed off calling it "Indian Debt Resolution Justice" and noting there had been "no media questions" on the disparity.
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