NCLAT to hear creditors' plea challenging Subhash Chandra’s repayment plan
NCLAT will hear creditors’ challenge to Subhash Chandra’s ₹6.5 crore repayment plan after several lenders opposed the proposal, arguing it could undermine the intent and purpose of the insolvency law.
Mumbai: The National Company Law Appellate Tribunal (NCLAT) on Monday agreed to hear an urgent plea by several creditors including LIC Housing Finance, HDFC Bank and Union bank of India, challenging the National Company Law Tribunal (NCLT) Delhi bench’s approval of Zee Group founder Subhash Chandra’s repayment plan.
Solicitor General Tushar Mehta, appearing for the creditors, urged the appellate tribunal to take up the matter urgently. The NCLAT agreed to hear the challenge on Tuesday at 10:30 am.
“There are two or three important questions to which are decided you know and if those findings are correct then my lord, possibly we will be having complete loss of intent and purpose of IBC” said Mehta, who was mentioning the matter virtually.
Quick answers to key questions
Subhash Chandra's repayment plan approved by the NCLT involves a total payment of ₹6.5 crore, with ₹6.25 crore allocated to creditors and ₹25 lakh for insolvency process costs.
Creditors are challenging the repayment plan because they believe it does not adequately address their claims, expecting to recover only a fraction of their dues, leading to a significant loss under the IBC.
Subhash Chandra justified his repayment plan by stating that it was prepared by a court-appointed Resolution Professional, and he cited the substantial repayments already made by borrowers against loans.
The NCLAT’s hearing allows creditors to contest the NCLT's approval of the repayment plan, potentially leading to a revision of the terms and a better recovery of their outstanding claims.
No, creditors should not expect full recovery, as the repayment plan proposes only a small fraction of the overall claims, indicated as about three paise for every ₹100 owed.
The challenge comes days after the NCLT approved Chandra’s repayment plan, under which he will pay ₹6.5 crore. Of this, ₹6.25 crore will be paid to creditors, while another ₹25 lakh will be used to cover insolvency process costs. Together, the two amounts total ₹6.5 crore, the overall amount proposed under Chandra’s repayment plan.
Mint first reported on Tuesday that the third judicial member of the insolvency court, Nilesh Sharma, who was included in February 2026 by the NCLT president, approved the repayment plan.
On Thursday, Mint reported that HDFC Bank was considering challenging the NCLT order before the National Company Law Appellate Tribunal (NCLAT). HDFC had opposed Chandra’s repayment plan and voted against it. The bank expects to recover about 3.2% of its total claim under the plan.
The voting record in the order copy shows several creditors, including HDFC Bank, Axis Bank, Canara Bank, RBL Bank and Union Bank of India, opposed the repayment plan.
Guarantee issue
Government officials, who spoke on the condition of anonymity, told Mint that the Subhash Chandra case should not be seen as Chandra personally taking loans worth thousands of crores. The insolvency case is against him because he had given personal guarantees for loans taken by several Essel and Zee-linked companies.
The officials said only about ₹2,574 crore of the claims relate to loans for which Chandra had given a personal guarantee when the loans were originally taken. Most of his other guarantees were given later as additional security.
Sharma said creditors had participated in the process and no sufficient prejudice had been established. He also held that the tribunal should not substitute its own commercial assessment for the decision taken by the required majority of creditors.
To be sure, Sharma’s opinion is not yet the final order. The matter will return to the regular bench for final directions.
About the Authors
Yash Tiwari is a Mumbai-based journalist who reports on corporate and regulatory developments, with a focus on court-driven policy shifts and the intersection of law and public policy. He has been in the profession for two years. Before joining Mint, he worked at NDTV Profit as an assistant producer on the TV desk while also reporting, gaining experience across television and print journalism and combining reporting with production expertise.<br><br> Born in Kolkata, a city he remains deeply connected to, Yash has a keen interest in the technicalities of Indian law and aims to decode complex legal developments in a clear and accessible manner for readers. He is a graduate of the Asian College of Journalism, Chennai, where he completed his postgraduate diploma in journalism.<br><br> He closely follows politics and government policies, and has covered several state elections as a freelance journalist. His work is driven by the idea of making law less intimidating and more understandable for the general public.<br><br> When not at work, Yash can be found playing cricket, revisiting classic matches, or engaging in conversations about the evolving landscape of law and policy in India.
Krishna Yadav is a Senior Correspondent at Mint, based in New Delhi, and part of the corporate bureau. He joined the newsroom as a trainee in 2023 and quickly grew into his current role. He writes on legal and regulatory developments in corporate India, with a focus on insolvency, taxation, company law, and policy. His reporting includes tracking and breaking key legal stories from the Supreme Court, Delhi High Court, NCLT, and NCLAT.<br><br>With a background in law, Krishna is known for simplifying complex legal developments into clear, accessible stories for readers. His work focuses on trends in corporate law and policy that affect businesses. This ranges from explaining tax disputes—like whether coconut hair oil is edible—to writing on why celebrities are seeking personal rights protection. He closely tracks India’s insolvency system, covering issues such as creditor losses, gaps in the process, and challenges in how the framework works in practice.<br><br>Krishna also tracks developments within law firms—covering hiring trends, how firms help companies navigate global challenges, and how the legal industry is adapting to artificial intelligence. Beyond legal reporting, he has written long-form pieces, including on-ground coverage of the 2024 general elections, capturing the scale and logistics of polling across India.<br><br>Outside work, he enjoys travelling, exploring new places, and reading about geopolitics and history.
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