NCLT Approves Subhash Chandra Repayment Plan; Creditors Face 99.97% Haircut On ₹22,006 Crore Claims

The National Company Law Tribunal (NCLT) has approved a repayment plan for Zee Group founder and chairman Subhash Chandra, under which creditors are set to receive only around ₹6.5 crore against admitted claims totalling approximately ₹22,006.57 crore. The proposal effectively represents a 99.97% haircut for lenders.

NCLT judicial member Nilesh Sharma, appointed as the third member after a difference of opinion between two members, approved the plan under Section 114 of the Insolvency and Bankruptcy Code (IBC).

NCLT backs creditor-approved repayment plan

The tribunal dismissed objections from lenders, including LIC Housing Finance, which argued that the recovery offered was too small to warrant approval. LIC Housing Finance had an admitted claim of nearly ₹1,322.39 crore but was offered only about ₹38 lakh.

Creditors also questioned the plan because the proposed ₹6.5 crore payment was described as indicative rather than final. However, the tribunal noted that creditors opposing the proposal represented less than 20% of the voting share, while the plan had secured approval from 80.81% of creditors.

The tribunal said its role was not to substitute its own assessment for the commercial judgment of creditors within the framework of the IBC.

Tribunal says rejection may reduce recovery prospects

In its 144-page order, the NCLT said the resolution professional’s valuation indicated that Chandra’s personal assets were worth substantially less than the amount proposed under the repayment plan.

The tribunal also reasoned that rejection could ultimately leave creditors worse off if Chandra were declared bankrupt, potentially limiting their ability to recover money from his financial assets.

Once approved, the repayment plan will be binding on all creditors, including those who voted against it, under Section 115 of the IBC.

The insolvency proceedings originated from a loan-related personal guarantee given by Chandra in connection with a ₹170-crore facility extended to Vivek Infracon. Indiabulls Housing Finance initiated proceedings in 2022. After an earlier settlement failed to materialise, the insolvency process was revived in 2024.