NCLAT Delhi Keeps Appeal Against Dr Subhash Chandra's ₹6.5 Cr Repayment Plan Pending, Lists It For Oct 7
Today, the National Company Law Appellate Tribunal (NCLAT), New Delhi, kept appeals filed by financial creditors against the repayment plan of Essel Group Chairman Dr Subhash Chandra pending.
A Bench of Officiating Chairperson Justice Yogesh Khanna with Technical Members Ajai Das Mehrotra and Barun Mitra posted the matter for 7 October.
Solicitor General Tushar Mehta, appearing for the financial creditors, informed the Bench about the background to the reference made to the President of the National Company Law Tribunal (NCLT) and the subsequent constitution of a larger five-member Bench.
He submitted that the larger Bench, on 1 September, had stayed the order passed by NCLT Judicial Member Nilesh Sharma on 25 August 2026. He also stated that the newly constituted Bench would have to consider and hear the matter afresh. Therefore, he sought withdrawal of the appeal with liberty to revive it “if and when the necessity arises” in the future.
Counsel for Dr Chandra opposed the request. He submitted that there were three orders in the matter and that the larger Bench had stayed only the order passed by Judicial Member Nilesh Sharma. He further contended that the difference of opinion between the NCLT Judicial Members concerned only the treatment of assenting and dissenting financial creditors.
He also submitted that the scope of Section 419(5) of the Companies Act, 2013, which deals with the constitution of Benches of the Tribunal, was limited, and that neither the Insolvency and Bankruptcy Code (IBC) nor company law empowered the NCLT to constitute a five-member Bench. He further informed that Dr Subhash Chandra was vilified across the country.
Mehta subsequently changed his request, stating that he was not pressing for withdrawal of the appeals at this stage and submitted that they could be kept pending.
The NCLAT agreed and posted the matter for 7 October 2026.
Background:
Indiabulls Housing Finance Ltd initiated insolvency proceedings against Dr Chandra in 2022 under Section 95 of the IBC, which provides for insolvency resolution of personal guarantors.
The repayment plan proposes Rs. 6.25 crore for creditors and Rs. 25 lakh towards process costs against admitted claims of Rs. 22,006.57 crore. Creditors holding 80.814% of the voting share approved the plan, resulting in an approximately 99.9% reduction in the admitted claims.
The original two-member Bench of the NCLT, New Delhi, delivered a split verdict on the repayment plan, with the Judicial Member supporting its approval and the Technical Member opposing it. The Bench then appointed Judicial Member Nilesh Sharma as the third Member to resolve the difference of opinion.
Sharma supported approval of the repayment plan in his order dated 25 August 2026. When the matter subsequently came before the original two-member Bench, the Members noted that Sharma had passed an independent order, following which they referred the matter to a larger Bench.