Subhash Chandra insolvency repayment plan appeal NCLAT
The NCLAT has issued notice on Essel Group Chairman Subhash Chandra's appeal against an asset alienation restraint, as conflicting NCLT rulings on his
The National Company Law Appellate Tribunal has issued notice on Essel Group Chairman Subhash Chandra's appeal, challenging an order that restrains him from alienating his assets. This procedural step highlights the ongoing legal gridlock surrounding his proposed ₹6.25 crore repayment plan in a personal guarantor insolvency case involving admitted claims of ₹22,006.57 crore.
Conflicting rulings from different benches of the National Company Law Tribunal have stalled the case. On September 1, the NCLT Delhi Bench passed an order restraining Chandra from alienating any assets. Earlier, on September 3, 2025, an NCLT Bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri delivered dissenting judgments on the repayment plan. Bhardwaj approved it, while Puri rejected it, citing irregularities in the admission of claims and the voting process.
This disagreement led to the matter being referred to a third member, Nilesh Sharma of the NCLT Mumbai Bench. Sharma passed an order on August 25, 2026, approving Chandra's plan. His order directed the exclusion of claims submitted by Anil Kumar on behalf of 960 individuals and by Sunil Jain on behalf of 300 individuals from the final creditor list. The amounts allocated to those excluded claims were to be redistributed among the remaining eligible creditors. Sharma also held that the approved plan would bind all creditors under Section 115 of the Insolvency and Bankruptcy Code.
The Special Bench's intervention
Following Sharma's decision, the matter was referred to the NCLT President, who constituted a five-member Special Bench. This Special Bench stayed Sharma's August 25 order, holding that no clear majority view had emerged on the repayment plan. When the case returned to the original NCLT Bench on August 31 for a consequential order, that bench also concluded no majority view had emerged. Chandra has now challenged this Special Bench’s order before the NCLAT.
Creditor challenges and appellate proceedings
Parallel appellate proceedings are underway. Creditors filed an appeal against the repayment plan on August 31. Solicitor General Tushar Mehta, appearing for the respondents before the NCLAT, raised issues regarding the maintainability of the appeals. He requested the appeals be listed for a detailed hearing on a later date. Solicitor General Tushar Mehta said: "The matter was already pending before the Delhi NCLT Bench. He said it was listed for hearing on November 19." He further pointed out that an appeal filed by creditors against Chandra’s repayment plan was listed before the NCLAT on October 7 and suggested the appeals be heard together.
The NCLAT bench, comprising Officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra, issued the notice on Tuesday, September 29, 2026. The respondents in the appeal include Resolution Professional Shiv Nandan Sharma and several financial institutions: Canara Bank Stressed Asset Recovery Management Branch, HDFC Bank Limited, IDBI Trusteeship Services Limited, IndusInd Bank Limited, LIC Housing Finance Ltd, RBL Bank Limited, and Union Bank of India. The insolvency proceedings were initiated based on an application filed by Indiabulls Housing Finance Limited under Section 95 of the IBC, 2016.
The appellate proceedings relating to Chandra’s challenge are scheduled to continue on September 29. Further hearings in the broader matter are listed for October 29 and 30.
