Zee founder Subhash Chandra’s Rs 6.25-cr settlement plan against Rs 22,006 cr claims on hold

The National Company Law Tribunal (NCLT) has delayed Subhash Chandra's plan to settle his personal insolvency proceedings, following the rejection of a previous decision that allowed him to pay Rs 6.25 crore against claims of Rs 22,006.57 crore. The five-member bench of the NCLT, led by President Justice (retd) Anupinder Singh Grewal, directed Subhash Chandra, as guarantor, not to dispose of any of his properties directly or indirectly.

The tribunal also issued notices to all parties and decided to rehear the matter due to the lack of a clear majority view on the earlier verdict. The case, which began in 2024 upon a petition by Indiabulls Housing Finance, concerns personal guarantees given by Chandra for borrowings of Essel Group-linked companies. The creditors had voiced concerns over the exceptionally low recovery, questioning whether Chandra's financial position had been thoroughly examined and whether a forensic investigation was necessary.

Banks that opposed the plan held only 19.186% of the votes, while the remaining 80.814% supported the repayment plan. This decision adds to the ongoing debate about the effectiveness of personal guarantees and the ability of lenders to recover money from guarantors with substantially lower assets than their liabilities.