Tribunal Hurdle To Subhash Chandra's Rs 22,000 Crore Debt Cut
The National Company Law Tribunal (NCLT) has failed to reach a majority verdict regarding the personal insolvency case of Essel Group Chairman Subhash Chandra. The case, involving over Rs 22,000 crore in debt, has been referred back to the NCLT President for further resolution.
Why it matters
The legal deadlock delays the resolution of a massive corporate debt case, impacting creditors and the broader Indian financial sector.
No final order has been passed by the National Company Law Tribunal in the personal insolvency case against Essel Group Chairman Subhash Chandra over claims of over Rs 22,000 crore, as its two-member bench on Monday failed to reach a majority verdict due to an independent opinion by the third member.The matter has been sent to the NCLT President again following the difference of opinion. The President may appoint a third member or issue an order himself to reach a majority view.Earlier, the four-year-old personal insolvency matter of Subhash Chandra had been referred to a Third member, as the two-member division bench of Ashok Kumar Bhardwaj, Member (Judicial), and Reena Sinha Puri, Member (Technical), gave a split verdict.The third member, in its 144-page order on August 25, stamped a Rs 6.5 crore payment by the Essel Group chairman against creditor claims of about Rs 22,006.57 crore in his personal insolvency…
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