NCLT Forms Five-Member Special Bench to Rehear Chandra Plan
· Business · LiveMint, Indian Express, Times of India
The National Company Law Tribunal has formed a new five-member special bench to reconsider the loan repayment plan of Zee Group founder Subhash Chandra. The Delhi bench acted after its previous three-member panel failed to reach a majority view on how the plan should operate. One member favored applying the repayment plan only to supporting creditors, while another held that it should apply to all creditors, including opponents. Chandra's plan proposes a total payout of ₹6.5 crore—comprising ₹6.25 crore to creditors and ₹25 lakh for the insolvency process—against total claims of ₹22,006 crore. Earlier on Monday, lenders including LIC Housing Finance, HDFC Bank, and Union Bank of India moved the National Company Law Appellate Tribunal against the initial approval.
Why it matters
Lenders challenging low-recovery restructuring plans face a critical test as a larger NCLT bench re-examines whether dissenting financial institutions can be bound by settlement terms. The outcome sets an important precedent for debt resolution dynamics involving high-profile corporate promoters in India.
Read the original report — LiveMint
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