Subhash Chandra Challenges NCLT Curbs in Rs 6.5 Crore Repayment Case
Subhash Chandra has challenged NCLT restrictions on his assets before the NCLAT in a personal insolvency case involving a Rs 6.25 crore repayment proposal.
Zee Group founder Subhash Chandra has approached the National Company Law Appellate Tribunal (NCLAT) against an NCLT order restricting him from selling or transferring his assets in connection with his personal insolvency proceedings. The appellate tribunal has directed Chandra to serve copies of his appeal on the creditors and listed the matter for September 29.
The case concerns a repayment plan proposed by Chandra during personal insolvency proceedings initiated by Indiabulls Housing Finance under Section 95 of the Insolvency and Bankruptcy Code. Chandra proposed paying Rs 6.25 crore to creditors against admitted claims of Rs 22,006.57 crore, along with Rs 25 lakh towards insolvency process costs.
The repayment plan received differing views from the NCLT members. One member supported approval for creditors who backed the proposal, while another rejected it citing procedural concerns. A third member later supported the plan and held that it would bind all creditors, including those who opposed it.
The matter was subsequently referred to a five-member NCLT bench after the original members failed to reach a majority view. The larger bench restrained Chandra from alienating his assets and stayed the earlier order supporting the repayment proposal.
Chandra has now challenged that decision before the NCLAT. During the hearing, some creditors said they had not received copies of the appeal or had not been formally made parties. The tribunal directed Chandra to provide the required copies and take steps to include the necessary parties.
