NCLT five-member Bench stays approval of Subhash Chandra’s ₹6.25-crore repayment plan
A five-member NCLT bench has stayed an order approving a repayment plan for Essel Group founder Subhash Chandra. The decision follows a lack of consensus among tribunal members regarding whether the plan should apply to all creditors or only those who supported it.
Why it matters
This case highlights significant legal ambiguity in Indian insolvency proceedings regarding the binding nature of repayment plans on dissenting creditors.
A five-member Bench of the National Company Law Tribunal (NCLT) on Tuesday (September 1, 2026) stayed an August 25 order approving a ₹6.25-crore repayment plan proposed by Essel Group founder Subhash Chandra in personal insolvency proceedings against him, after finding that no clear majority view had emerged among the members who had earlier heard the matter.
The Special Bench, headed by NCLT President Justice Anupinder Singh Grewal, noted that there was no clear majority opinion capable of being given effect to under Section 419(5) of the Companies Act, 2013, which provides for a reference to additional members when members of an NCLT Bench differ in their opinion.
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