NCLT Halts Subhash Chandra’s Personal Insolvency Settlement, Restrains Asset Disposal
NEW DELHI: In a significant development for the ongoing insolvency proceedings involving Zee Group founder Subhash Chandra, a five-member special bench of the NCLT has stayed an earlier order that had permitted him to settle his personal insolvency case for a fraction of the total claims.
The tribunal’s latest directive halts the settlement plan, which would have allowed Chandra to resolve personal insolvency proceedings by paying Rs 6.25 crore against admitted claims totaling a staggering Rs 22,006.57 crore. Additionally, the special bench has issued a strict restraint, prohibiting Chandra from alienating any of his assets, whether directly or indirectly, until further notice.
A History of Dissent
The litigation has been marked by prolonged uncertainty and procedural friction. The matter has remained inconclusive for over a year due to a series of conflicting judicial opinions.
The impasse began in September 2025, when a two-member bench delivered a split verdict. While one member favored the repayment plan, the other rejected it, pointing to significant irregularities in both the admission of claims and the voting process. To break the deadlock, the case was referred to a third member, Nilesh Sharma, who issued an order on August 25 approving the repayment plan—albeit with conditions regarding the exclusion of certain disputed claims and the reallocation of shares among eligible creditors.
However, the special bench observed that when the third member’s order was viewed alongside the initial split verdict, it failed to produce a clear legal majority, rendering the implementation of the settlement plan untenable.
The Special Bench Ruling
Presided over by Tribunal Chief Anupinder Singh Grewal, the five-member special bench analyzed the three preceding orders and concluded that they lacked the necessary consensus required under Section 419(5) of the Companies Act, 2013.
“It is manifest that… there is no clear majority view capable of being given effect to; therefore, the order dated Aug 25 of the third member Nilesh Sharma is stayed,” the bench stated in its ruling.
The tribunal has issued notices to all involved parties, providing them time to file their replies before the next hearing. The matter is now scheduled for further proceedings on September 23.
Parallel Legal Challenges
The complexity of the case extends beyond the NCLT. The matter has simultaneously reached the National Company Law Appellate Tribunal (NCLAT), where dissenting lenders are actively challenging the validity of the repayment plan. During recent proceedings, the Solicitor General requested additional time to determine the lenders’ strategy regarding their ongoing appeal.
As the legal battle continues, the freeze on Subhash Chandra’s assets remains a critical component of the tribunal’s efforts to ensure the status quo is maintained while the complex financial dispute is resolved.
